BY AD v. SHERRY J. THOMAS

BY ADVS. SMT. DEEPA V, GOVERNMENT PLEADER SRI.PRASAD CHANDRAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.15336 of 2024 :3: J U D G M E N T Dated this the 23rd day of April, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the State Bank of India to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,

The Bank paid ₹10 lakhs to the petitioner as Term Loan in the year 2016. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, she could not pay the repayment instalments promptly later due to unforeseen circumstances. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner. W.P.(C)No.15336 of 2024 :4:

Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy monthly instalments, the Bank authorities were not yielding. The authorities, instead, started coercive proceedings, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Security Interest (Enforcement) Rules, 2002 and issued Ext.P2 notice.

The petitioner states that she is still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, she will be put to untold hardship and loss.

Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner. On behalf of the respondents, it is submitted that W.P.(C)No.15336 of 2024 :5: the loan was given to the petitioner in the year 2016. The petitioner committed default in repaying the loan.

The Bank repeatedly reminded the petitioner and required her to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioner invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,

2002. The impugned Ext.P2 notice was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

The Standing Counsel, however, submitted that if the petitioner is ready and willing to remit the balance outstanding amount in instalments, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due W.P.(C)No.15336 of 2024 :6: to the Bank from the petitioner as on 23.04.2024 is ₹21,78,074/-.

I have heard the learned Counsel for the petitioner and the learned Standing Counsel representing the Bank.

The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan account initially. The default in repayment occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.

In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioner to clear off the liability.

The writ petition is therefore disposed of with the following directions: (i) The petitioner shall outstanding amount of ₹21,78,074/- in 12 W.P.(C)No.15336 of 2024 :7: equal and consecutive monthly instalments along with accruing interest and other Bank charges, if any. The first instalment shall be paid on or before 23.05.2024. (ii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioner in accordance with law. (iii) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred. JUDGE Sd/- N. NAGARESH W.P.(C)No.15336 of 2024 :8: APPENDIX OF WP(C) 15336/2024 PETITIONER'S EXHIBITS Exhibit P1 Exhibit P2 Exhibit P3 Exhibit P3A THE TRUE COPY OF THE CERTIFICATE NUMBER 49/2023 DATED 15.02.2023 ISSUED BY THE 4TH RESPONDENT THE TRUE COPY OF THE LETTER ISSUED BY THE 5TH RESPONDENT THE TRUE COPY OF THE EMAIL SUBMITTED BY THE PETITIONER TO THE 4TH RESPONDENT DATED 30/03/2024 THE TRUE COPY OF THE EMAIL SUBMITTED BY THE PETITIONER TO THE 5TH RESPONDENT DATED 30/03/2024