P P UMAIBA Vs. MANAGER FEDERAL BANK LTD

JUDGEMENT

(1.) THE husband of the petitioner had availed a housing loan of Rupees Five lakhs from the first respondent Bank in February 2008, on the strength of security interest created over the property belonging to the petitioner, who stood as a guarantor.

(2.) THE case of the petitioner is that, the borrower i.e. husband of the petitioner suddenly fell ill and took his last breath on 16.08.2010, pursuant to a cardiac arrest. By virtue of availability of an insurance policy, the petitioner preferred a claim before the fourth respondent/Insurer, which however was repudiated as per Ext. P4, in turn driving the petitioner to prefer Ext. P7 complaint before the 5th respondent/Insurance Ombudsman, where the same is stated as still pending. It is in the meanwhile, that the Bank proceeded with steps under the SARFAESI Act, which made the petitioner to approach this Court by filing the present writ petition.

(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 10th of August, 2012; to be followed by similar installments to be effected on or before the 10th 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.