PATRICK Vs. FEDERAL BANK LTD

JUDGEMENT

(1.) THE petitioner availed a loan of Rs. Three lakhs from the respondent Bank, creating security interest over the property in question. Because of the adverse circumstances, the repayment could not effected on time, as scheduled, which made the petitioner a defaulter and the Bank proceeded with the steps under the SARFAESI Act, after declaring the account as 'NPA', which made the petitioner to approach this Court by filing this writ petition.

(2.) THE learned counsel appearing for the respondent Bank submits that as on today a sum of Rs.2,39,943/- is due from the petitioner and since the tenure for repayment is already over, the question of regularization does not arise.

(3.) CONSIDERING the facts and circumstances, this Court finds it fit and proper to permit the petitioner to clear the entire liability by way of reasonable installments. Accordingly, the petitioner is directed to clear the entire outstanding liability by way of 'eight' equal monthly installments; the first of which shall be effected on before the 15th of September, 2012; to be followed by similar installments to be effected on or before the 15th of the succeeding months. Subject to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if the petitioner commits any default in remitting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump, from the stage where it stands now. The Writ Petition is disposed of.