BABY RANJITH Vs. THE BANK OF INDIA AND

JUDGEMENT

(1.) HEARD counsel for the appellant and Standing Counsel for the Bank of India who appeared at the admission stage. It is clear from the judgment that the dispute between the appellant and the Bank is settled through award passed in the Lok Adalat whereunder appellant was liable to remit Rs. 39,70,000/ - before 30.4.2010. The appellant's case is that he has to sell his property and on account of the slump in the market, he has not been able to dispose of the property and therefore, prayer before this court was only for further time for payment in terms of the award. However, the learned Single Judge declined stating that award is a rather consent award and appellant cannot go back from the terms. We notice that the award takes into account probable failure on the part of the appellant to make payment within the time stated therein and, therefore, Bank was given freedom to recover a higher amount which is something like Rs. 66,000/ - over and above the award amount for the delay in payment. Further, interest provided to the Bank is at the rate of 12.5% from 28.12.2009. Even though the steps taken by the Bank by initiation of proceedings under the SARFAESI Act is in terms of the award passed by the Lok Adalat, we feel appellant can be granted further two months time to make payment under the default clause contained in the award for more than one reason. In the first place, appellant is a business man and the loan granted is for business purpose. Secondly, the loan is fully secured and delay in payment will not cause any prejudice to the Bank. Further, liability on account of non -payment on due date results in an increased benefit to the Bank which is around Rs. 66,000/ - with interest at reasonable rate of 12.5% from 28.12.2009 onwards. Lastly, even if we reject the Writ Appeal, the Bank will take not less than two to three months to sell the property and recover the amount. Since Bank's interest is protected in every way and delay in recovery is also compensated by the award, we grant two months' time from today to the appellant to remit the amount in terms of the award, failing which there will be direction to the appellant to vacate from the secured assets and hand over possession to the Manager of the Bank, in default whereon the Bank can move this court to initiate Contempt against the appellant for violation of direction contained and in that event, this court will order heavy cost on the appellant. All steps initiated by the Bank for recovery including SARFAESI proceedings and Revenue Recovery proceedings will remain stayed for a period of two months from now and thereafter all the proceedings will revive against the appellant besides appellant's duty to hand over possession of the property to the Bank.

(2.) WRIT Appeal is disposed of as above.