A V RAJAN v. MANAGER

The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Punjab National Bank to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,

The Bank paid ₹30 lakhs to the petitioner as Overdraft Facility in the year 2017. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the repayment instalments promptly later due to financial constraints. The repayment of advance fell into arrears. It happened due to reasons beyond the control of the W.P.(C)No.18925 of 2024 :4: petitioner.

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.

The petitioner states that he 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, he 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 W.P.(C)No.18925 of 2024 :5: petitioner. On behalf of the respondents, it is submitted that the advance was given to the petitioner in the year 2017. The petitioner committed default in maintaining the advance.

The Bank repeatedly reminded the petitioner and required him 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 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 make a substantial payment soon and remit the balance outstanding amount immediately thereafter, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from W.P.(C)No.18925 of 2024 :6: the petitioner as on 30.04.2024 is ₹22,60,741.59.

I have heard the counsel for the petitioner and the 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 maintenance of the account 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 ₹22,60,741.59 in 14 W.P.(C)No.18925 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 27.06.2024. (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. No further time will be granted to the petitioner for making payments. (iii) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred. Sd/- N. NAGARESH JUDGE W.P.(C)No.18925 of 2024 :8: APPENDIX OF WP(C) 18925/2024 PETITIONER'S EXHIBITS Exhibit P1 Exhibit P2 Exhibit P3 COPY OF THE JUDGEMENT DATED 26/06/2022 IN WP(C) NO. 16993/22 COPY OF THE ACCOUNT STATEMENT DATED 17/05/24 COPY OF THE REPRESENTATION SUBMITTED BEFORE THE RESPONDENT BANK DATED 15-05-2024