THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY WRIT PETITION No. 19976 OF 2006 Dated 29th January 2007 Between: Tallam Venkata Kameswara Rao & another …Petitioners and The Managing Director & Authorised Officer, Eluri Co-operative Urban Bank Limited, Patnam Bazar, Guntur. …Respondents THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY WRIT PETITION No. 19976 OF 2006 O R D E R: The petitioners borrowed a sum of Rs.3,00,000/- from the respondent, in the year 2004. The amount was to be paid in 36 monthly instalments. While the petitioners state that they paid Rs.1,50,000/-, according to the respondent, only a sum of Rs.1,35,000/- was paid. For recovery of the balance amount, the respondent sought to invoke the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (for short “the Act). The petitioners challenge the same. Heard the learned counsel for the petitioners and learned counsel for the respondent. It is not in dispute that the petitioners committed default in payment of instalments. The Act provides for enforcement of the security, in case the property oﬀered as security comes to be termed as non- performing asset. The question as to whether the respondent followed the prescribed procedure, before it sought to invoke Section 13(2) of the Act, does not call for immediate consideration, because of certain developments, subsequent to ﬁling of the writ petition. While admitting the writ petition on 25.9.2006, this court granted interim stay, on condition that the petitioners deposit a sum of Rs.1,15,000/-, within four weeks from that date. Default clause was added. The respondent also admits that the petitioners complied with the condition. It is now stated that a sum of Rs.1,40,861/- is due from the petitioners. This is inclusive of penal interest. According to the agreed schedule, the total amount is to be repaid by March 2007. On account of the default committed by the petitioners, the entire amount was demanded, much before that date. The respondent did not suﬀer any loss in terms of interest. The calculation made by it was accepted, and a sum of Rs.1,15,000/- was paid, in advance. Be that as it may, the petitioners are extended the beneﬁt of repaying the balance of Rs.1,40,861/-, in seven monthly instalments of Rs.20,150/- each, commencing from February 2007, payable on or before 10th of every month. In case, the petitioners commit default in payment of any two consecutive instalments, it shall be open to the respondent, to invoke the provisions of the Act. The writ petition is accordingly disposed of. There shall be no order as to costs. ___________________ 29th January 2007 PAN