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2016 Supreme(Online)(KER) 37192
HIGH COURT OF KERALA
A.M.SHAFFIQUE, J
RADHAKRISHNAN – Appellant
Versus
THE SECRETARY – Respondent
WRIT PETITION (CIVIL) 34404/2016
Borrowers under the SARFAESI Act may be granted relief to repay overdue loans in instalments, reflecting the court's discretion in managing defaults.
Headnote:
SARFAESI - Loan Default - SARFAESI Act - Sections 13, 14 - Court allowed repayment in instalments, interpreting provisions for borrower rights under the Act.
Fact of the Case:
Petitioners faced proceedings under the SARFAESI Act after defaulting on a loan. They expressed willingness to repay in instalments.
Finding of the Court:
The court found that the petitioners' willingness to repay justified granting them time to pay overdue amounts in instalments.
Issues: Whether the petitioners could be granted indulgence to repay overdue loan amounts despite previous defaults.
Ratio Decidendi: The court applied the SARFAESI Act provisions concerning borrower rights and the ability to repay in instalments.
Final Decision: Writ petition was disposed of allowing repayment in instalments.
J U D G M E N T
Petitioners have approached this Court being faced with proceedings initiated by the respondent Bank under the SARFAESI Act .
2. Petitioners had taken a loan for `5 lakhs. The petitioners could not repay the monthly instalments in time on account of certain financial difficulties. In the meantime, proceedings had been taken by the respondent Bank under the SARFAESI Act .
3. Learned counsel for the petitioners submits that the petitioners are ready and willing to pay the outstanding dues in instalments and will also pay the regular instalments if some time is granted.
4. Having regard to the fact that the petitioners had expressed their willingness to repay the amount in instalments, I am of the view that some indulgence can be shown to the petitioners.
Accordingly, this writ petition is disposed of as under:
(i) The petitioners shall pay the overdue amount with accrued interest in six equal monthly instalments starting from
25.11.2016.
(ii) In addition to payment of the aforesaid amount, petitioners shall also remit monthly instalments as per the agreed terms.
(iii) If payments are made as stated above, the Advocate Commissioner shall defer taking possession of the secured asset, failing which, it shall be open for the Advocate Commissioner to take possession of the secured asset without any further notice and the respondent Bank is entitled to take such steps in accordance with law.
