JISHAN S Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) THE petitioner has availed a housing loan of Rs.29,75,000/- (Rupees twenty nine lakhs seventy five thousand) from the respondent Bank in November 2010, on the strength of security created over the property in question. Obviously, the petitioner turned to be a defaulter, when there was no other alternative for the Bank, who declared the account as 'NPA' and proceeded with steps under the SARFAESI Act, which in turn is under challenge in this writ petition.

(2.) LEARNED counsel appearing for the Bank submits on instructions that, out of the 20 monthly instalments, the petitioner has satisfied only 3 instalments, leaving 17 in the dark. This by itself constitutes the default of 'overdue' to the tune of Rs.6.12 lakhs plus interest, cost and such other expenses, which nearly comes to Rs.10 lakhs in total, as on date. The learned counsel also submits that, despite many an opportunity given to the petitioner, he was never anxious enough to clear at least a portion of the liability, simultaneously adding that the steps taken by the Bank are strictly in conformity with the statutory prescriptions and hence not assailable.

(3.) AFTER hearing both the sides, this Court finds that, unless the petitioner proves his bonafides by clearing the entire 'overdue' amount within a short while, the claim for regularization is not liable to be entertained. Giving a last chance to the petitioner to save the property by pursuing such course, the petitioner is directed to deposit a sum of Rs. 5 lakhs on or before 30th of this month and the remaining 'overdue' amount shall be cleared on or before the 30th of September, 2012. Subject to this, the loan account will stand regularized and recovery proceedings shall be kept in abeyance for the time being. This will be in addition to the liability of the petitioner to clear the regular EMIs without fail. It is made clear that, if any default is committed with regard to repayment of the 'overdue' amount or if any two consecutive defaults are made with regard to the regular EMIs, it will be open for the respondent Bank to proceed against the petitioner and the assets for realization of the entire amount in lump, from the stage where it stands now. Writ petition is disposed of.