O M THANKACHAN Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) PETITIONERS availed of a loan of Rs.7 lakhs in 2005 from the respondent Bank for the construction of a residential building. Although they say that substantial payments were made, even going by the pleadings, as at present, they have an outstanding liability of about Rs.7.5 lakhs and the defaulted instalments is about Rs.2 lakhs. In such circumstances, Bank initiated SARFAESI proceedings and as part thereof, an Advocate Commissioner appointed by the Chief Judicial Magistrate Court in exercise of the powers under Section 14 of the Act has issued Ext.P3 notice. It is at that stage this writ petition has been filed seeking a direction to the respondents to permit the petitioners to conduct private sale of the secured assets and grant time to liquidate the liability.

(2.) I heard the learned counsel appearing for the petitioners and also the learned standing counsel appearing for the respondent Bank.

(3.) BE that as it may, petitioners are still entitled to clear the outstanding liability and in which event, there is no reason why the Bank shall not regularise the loan. Therefore, I direct that the petitioners will be permitted to pay the defaulted instalments due in four equal monthly instalments. This shall be paid along with the current dues on dates when the current instalments are to be paid. Subject to such payment, coercive action pursuant to Ext.P3 will be deferred and once defaulted instalments are cleared as above, the loan in question will also be regularised. Needless to say that in the event the petitioners fail to comply with the above directions, respondents will be free to continue the proceedings already initiated.