The judgment reinforces the principle that borrowers can seek relief from enforcement actions if they demonstrate intent to rectify loan defaults.

JUDGMENT

The petitioners availed a housing loan from the respondent Bank on the strength of the security created on property of the petitioners. But the repayment was not proper due to some unforeseen events and coercive proceedings were taken by the respondent Bank under the SARFAESI Act which made the petitioner to approach this Court by filing this writ petition.

2. The learned counsel for the Bank submits on instructions that, as on date, a sum of Rs.1,50,067/-(Rupees one lakh fifty thousand and sixty seven) is lying as 'overdue' amount in respect of the defaulted instalments and such other incidental charges and unless the petitioners clear the said amount, the loan account is not liable to be regularized. The learned counsel for the petitioners submits that the 'EMI outstanding' is shown as Rs.93,408/-(Rupees ninety three thousand four hundred and eight); overdue and such other charges as Rs.44,034/-(Rupees forty four thousand and thirty four) and yet another sum of Rs.10,508/-(Rupees ten thousand five hundred and eight) is shown in respect of 'foreclosure charges'. It is contended that 'foreclosure charges' cannot be realised, unless the loan account is closed. The learned counsel for the respondent Bank submits that the amount now stated as due before this Court does not include 'foreclosure charges', but for the EMIs and overdue charges as on date. It is also stated that the figures given in Ext.P3 only constitute the amount as on the date of issuance of 13(2) notice and that the liability has got mounted up thereafter.

3. After hearing both the sides and considering the specific request of the petitioner to give one more opportunity to have the loan account regularized by clearing the overdue amount and also taking note of the submission that the petitioner does not dispute the liability to satisfy the due amount, this Court finds it fit and proper to grant one more chance to the petitioner in this regard. Accordingly, the petitioners are directed to satisfy the 'overdue' amount by way of 'three' equal monthly instalments, the first of which shall be effected on or before the 25th of this month; to be followed by similar instalments to be effected on or before the 25th of the succeeding months. This shall be in addition to the liability of the petitioners to clear the regular EMIs as well. Subject to this, the loan account will stands regularized. The coercive proceedings being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to the satisfaction of the 'overdue' amount or if any two consecutive defaults are made with regard to the regular EMIs, it will be open for the respondent bank to proceed against the petitioners and the assets for realization of the entire amount in lump.

Writ petition is disposed of.

P.R. RAMACHANDRA MENON, JUDGE.

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