IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 10TH MARCH 2010 / 19TH PHALGUNA 1931 WP(C).No. 7741 of 2010(P) ------------------------- PETITIONER: --------------- N. RAJAPPAN NADAR, S/O. NANAN NADAR, KADAYARA ROADARIKATHU PUTHEN VEEDU, KOZHAKUNNATHU, COMPANY MUKKU, VELLANAD.P.O, THIRUVANANTHAPURAM. BY ADV. SRI.SANTHOSH MATHEW ADV. SRI.SATHISH NINAN RESPONDENTS: --------------- 1. THE AUTHORISED OFFICER, KERALA STATE CO-OPERATIVE BANK LTD., VAZHUTHACAUD BRANCH, CENTRAL PLAZA, VAZHUTHACAUD, KERALA. 2. THE BRANCH MANAGER, KERALA STATE CO-OPERATIVE BANK LTD., VAZHUTHACAUD BRANCH, CENTRAL PLAZA, VAZHUTHACAUD, KERALA. BY ADV. SRI.NAGARAJ NARAYANAN,SC,K.S.CO-OP BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 7741 OF 2010 ......................................................................... Dated this the 10th March, 2010 J U D G M E N T The petitioner had availed a loan of Rs. Seven lakhs from the second respondent in the year 2005 by creating security interest over the property in question. But the petitioner could not honour his commitment, which made the respondent Bank to proceed with further steps to realise the amount from the petitioner declaring the loan account as 'NPA', which forms the subject matter of this Writ Petition,. 2. Heard the learned Standing Counsel for the respondent Bank. 3. The learned Counsel for the petitioner submits that he happened to be a defaulter only because of some unforeseen circumstances and that the default was never wilful . It is stated that every earnest effort is being made to clear the liability in a phased manner and the prayer is limited to provide W.P.(C) No. 7741 OF 2010 2 some reasonable installments. 4. The learned Standing Counsel for the respondent Bank submits that the overdue liability itself will cross more than Rs. Eight lakhs and that the question of regularisation of the loan account can be entertained only if the petitioner proves his bonafides by effecting some substantial payments. 5. In the above circumstance, the petitioner is directed to remit a sum of Rs. Two lakhs on or before 30.03.2010 and the balance amount shall be cleared by way of 'five' equal monthly installments, the first of which shall be effected on or before 30.04.2010, to be followed by similar installments to be effected on or before the 30th of the succeeding months. It is also made clear that the petitioner shall continue to effect the regular E.M.Is as originally stipulated, besides clearing the arrears as above. The loan will stand regularised and all coercive proceedings will stand stayed accordingly. It is further made clear that if the petitioner commits any default in remitting the arrears or in the event of committing two consecutive defaults in respect of the regular E.M.Is payable, the respondent Bank will be at liberty to W.P.(C) No. 7741 OF 2010 3 proceed against the petitioner and his assets for realisation of the entire outstanding liability in a lump sum, pursuing the coercive steps, from the stage where it stands now. The Writ Petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. lk