ROCKY VENCHILAS Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE petitioners availed a housing loan of Rs.5.1 lakhs from the respondent Bank in February 2006 and an additional housing term loan of Rs. 3.5 lakhs in November 2007, based on the security interest created over the property in question. Since repayment was not effected promptly, there was no alternative for the Bank, but to declare the account as 'NPA' and proceed with steps under the SARFAESI Act, which made the petitioner to approach this Court by filing the present writ petition.

(2.) A statement has been filed on behalf of respondents 1 and 2 pointing out that the petitioners are virtually chronic defaulters in so far the overdue amount in respect of the defaulted instalments itself constitutes Rs. 5.86 lakhs, after giving credit to the sum of Rs. 1.2 lakhs deposited by them pursuant to the interim order passed by this Court on 16/07/2012. The total liability to have the loan account closed is stated as Rs. 14.61 lakhs, as on 19.07.2012.