SANTHOSH PUTHEN VEEDU Vs. AUTHORISED OFFICER CHIEF MANAGER

JUDGEMENT

(1.) The petitioner availed a loan of Rs. 5.5 lakhs from the respondent Bank on 26.2.2008, on the strength of the security interest created over the property in question, agreeing to repay the liability by way of sixty equal monthly installments. However, the petitioner remitted only the first installment, under which circumstance, the account was declared as 'NPA' and the Bank proceeded with the steps under SARFAESI Act, including by filing Ext.P1 petition before the concerned Chief Judicial Magistrate's Court, under Section 14 of the Act, for rendering necessary assistance to take physical possession of the property, which in turn is under challenge in this Writ Petition.

(2.) When the matter came up for consideration on 20.4.2010, the coercive proceedings were intercepted, on condition that, the petitioner deposited a sum of Rs. 1,50,000/- within three weeks, which period was subsequently enlarged on filing I.A. No. 8012 of 2010, allowed on 22.6.2010. The learned counsel submits that the condition imposed by this Court has been complied with.

(3.) The learned counsel appearing for the respondent Bank submits, with reference to the contents of the statement filed on behalf of the respondents 1 and 2, that the petitioner was a chronic defaulter, having admittedly repaid only the first installment followed by the payment of Rs.1.5 lakhs, pursuant to the interim order By virtue of the nature and Scheme of the loan extended to the petitioner, the respondent Bank is stated as not in a position to regularize the loan account.