GEORGE JOSEPH Vs. FEDERAL BANK LTD.

JUDGEMENT

(1.) Petitioner was enjoying a cash credit facility from the first respondent Bank (the Bank). Since the petitioner did not operate the account as agreed, the account became a non- performing asset of the Bank. Consequently, the Bank initiated proceedings against the petitioner under the Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 (the Act) and obtained an order for taking possession of the property mortgaged by the petitioner to the Bank. The writ petition is instituted at that point of time challenging the proceedings against the petitioner.

(2.) Today, when this matter was taken up, the learned counsel for the petitioner pointed out that substantial amounts have already been paid by the petitioner in the account by way of interest and if the petitioner is given a breathing time, he is prepared to liquidate the liability in full.

(3.) The learned counsel for the Bank has pointed out that the petitioner has entered into an agreement for sale of the property mortgaged to the Bank, to the additional second respondent and received substantial amounts. Nevertheless, it is pointed out that no amount has been paid to the Bank. It was also pointed out by the learned counsel for the Bank that a sum of Rs.37,22,325/- is still outstanding in the account of the overdraft facility.