IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 29TH JUNE 2009 / 8TH ASHADHA 1931 WP(C).No. 18025 of 2009(W) ----------------------------------- PETITIONER(S): ------------------------ 1. N.K.SOMAN,NEDIYAPARAYIL, THEKKETHUKAVALA PONKUNNAM 2. K.S.SOBHANA, NEDIYAPARAYIL, THEKKETHUKAVALA, PONKUNNAM. BY ADV. MR.LIJI.J.VADAKEDOM RESPONDENT(S): --------------------------- 1. AUTHORIZED OFFICER,STATE BANK OF TRAVANCORE, REGION-II,ZONAL OFFICE, KOTTAYAM. 2. STATE BANK OF TRAVANCORE, THEKKETTUKAVALA BRANCH, REPRESENTED BY ITS BRANCH MANAGER, THEKKETHUKAVALA, PONKUNNAM. BY MR.SATHISH NINAN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J. ----------------------------------------------- WP(C) NO. 18025 OF 2009 ----------------------------------- Dated this the 29th day of June, 2009 JUDGMENT The petitioners had availed three loans from the respondent Bank, out of which, only two loans form the subject matter of the present Writ Petition. The case of the petitioners is that, despite the earnest efforts in effecting the periodical instalments, they happened to be defaulters because of some unforeseen circumstances. This made the respondent Bank to proceed with the coercive steps under the SARFAESI Act, which is sought to be interfered by this Court in the present Writ Petition. 2. Learned Counsel appearing for the petitioners submits that, even few days back on 20th of June, 2009, the petitioners, by virtue of their bonafides, had effected payment of Rs.2,00,000/- as evident from Ext.P4 receipt. It is also pointed out that earnest efforts are being made to clear the entire defaulted arrears and to have the loan regularised. 3. Learned Counsel appearing for the respondent Bank submits on instructions that, the payments have been made by the petitioners only on resorting to the steps under the SARFAESI Act and that the Bank was constrained to move the said machinery, when the petitioners turned to be chronic defaulters. However, it is conceded that, the payments stated as effected vide Ext.P4 stands very much correct and as on date, a total sum of Rs.1,63,000/- with cost and other incidental expenses is due from the petitioners, under the two loans concerned (excluding the agricultural loan which is not a WPC NO. 18025/2009 2 subject matter of the present Writ Petition) which is to be cleared, if at all the loans are to be regularised. 4. After considering the facts and circumstances and also the bonafide attempt stated as being made to wipe off the entire liability towards the defaulted arrears, the petitioners are permitted to clear the outstanding amount of Rs.1,63,000/- and costs as to be confirmed and conveyed by the respondent Bank, by way of three equal monthly instalments commencing from the 30th of July, 2009, to be followed by the 30th of August and September respectively. This will be in addition to the burden on the part of the petitioners to discharge the liability towards the regular EMI from July onwards. On effecting the remittances as above, the above two loan accounts of the petitioners will stand regularised and the petitioners will have to continue to effect the regular EMIs as originally stipulated. Subject to the above, the recovery proceedings stated as being pursued against the petitioners shall be kept in abeyance, for the time being. However, it is made clear that if any default is committed from the part of the petitioners in remitting the instalments towards the defaulted EMIs as above, or if two consecutive defaults are made with regard to the remittance of regular EMIs, the respondent Bank will be at liberty to proceed with coercive steps, from the stage where it stands now, for realisation of the entire amount in lump sum. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc