IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 23RD JUNE 2010 / 2ND ASHADHA 1932 WP(C).No. 9187 of 2010(W) -------------------------------------- PETITIONERS: --------------------- 1. T.P.MOHAN DAS, THATTANPUTHIYOTTIL HOUSE, VALIYAKODE P.O., MEPPAYUR (VIA), KOZHIKODE. 2. SNEHAPRABHA,THATTANPUTHIYOTTIL HOUSE, VALIYAKODE P.O., MEPPAYUR VIA, KOZHIKODE. BY ADV. SRI.K.B.ARUNKUMAR. RESPONDENTS: ------------------------ 1. PUNJAB NATIONAL BANK, CIRCLE OFFICE, SATHABDI BHAVAN, GOVINDAPURAM, MINI BY PASS ROAD, KOZHIKODE, REPRESENTED BY ITS MANAGER. 2. PUNJAB NATIONAL BANK, PERAMBRA BRANCH, PERAMBRA, KOZHIKODE DISTRICT, REPRESENTED BY ITS BRANCH MANAGER. R1 & R2 BY SRI.K.P.SUDHEER, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/06/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. P.R.RAMACHANDRA MENON, J. ---------------------- W.P.(C) No.9187 OF 2010 --------------------------- Dated this the 23rd day of June, 2010 J U D G M E N T ~~~~~~~~~~~ The petitioners are before this Court by way of second round of litigation seeking to intercept the proceedings being taken by the Bank under the SARFAESI Act for realisation of the amount stated as due under a 'housing loan'. 2. The petitioner has availed a 'housing loan' of Rs.7,00,000/- in November, 2005, creating security interest over the property in question and the due amount was liable to be repaid by way of equally monthly instalments spread over a period of ten years. But, since there was no positive repayment as scheduled, the account was declared as 'NPA' and Section 13(2) notice was issued in June 2008. In the said circumstances, the petitioner approached this Court by filing W.P.(C) No.27871/2008, wherein Ext.P1 interim order was passed on 19.9.2008 staying the recovery proceedings, subject to the condition that the petitioner satisfied a sum of Rs. 40,000/- on or before 30.9.2008 and another Rs.40,000/- on or W.P.(C) No.9187/2010 2 before 30.10.2008. The petitioner satisfied only the 1st installment under which circumstance interference was declined and the Writ Petition was dismissed on 3.12.2008 as borne by Ex.R1(a) judgment (produced by the respondent Bank along with I.A.No.7299/2010). 3. It is stated that the petitioner subsequently satisfied the 2nd instalment of Rs.40,000/- mentioned in Ext.P1 interim order, pursuant to which the Bank volunteered to regularise the loan account in March 2009. It is conceded by the petitioner that there occurred some default on the part of the petitioner with regard to the subsequent payments as well. However, it has been subsequently assured from the part of the Bank as communication from the Circle Office in Chennai vide Ext.P6 letter dated 12.3.2009 that on clearing 'overdue' amount the account will be regularised; inspite of which the Bank is proceeding with further steps to take over the physical position of the property and to have it sold in public auction. W.P.(C) No.9187/2010 3 4. The learned counsel appearing for the Bank submits that the averment made by the petitioner in the Writ Petition that pursuant to Ext.R1(a) judgment, the liability was cleared by the petitioner is a wrong and misleading, in so far as, as borne by the judgment interference was declined and the Writ Petition was dismissed. So, pursuant to the subsequent satisfaction of the due amount, the loan account was regularised by the Bank. The learned counsel further submits that after regularisation of the loan account in March 2009, the petitioner never keep to one of the commitments and paid only a sum of Rs.8,500/- on 27.6.2009. Under this circumstance, the account was again declared as 'NPA' on 31.12.2009. This was followed by ExtP3 notice issued on 15.1.2010 under Section 13(2) of the SARFAESI Act. It was at this point that the petitioner was forced to approach this Court again by filing this Writ Petition, where an interim order passed on 19.3.2010 intercepting with the coercive steps, on condition that the petitioner deposited a further sum of Rs.One lakh on or before 31.3.2010. Subsequent to enlargement of time to comply with the direction as per the order dated 8.4.2010 in I.A.No.4884/2010, the condition was W.P.(C) No.9187/2010 4 satisfied. This is because of the course and conduct pursued by the petitioner that the Bank has decided not to give any benefit of further regularisation and to proceed with the steps under the relevant provisions of law to realise the due amount. It is also brought to the notice of this Court that while issuing Ext.P6 from the Circle Office, the entire course and events till that date were not specifically adverted to, while mentioning that on clearing the 'overdue' amount the loan account was to be regularised. In any view of the matter, since a commitment was made from the part of the Bank form the Circle Office vide Ext.P6, the learned counsel submits that the Bank is ready and willing to give one more opportunity, as the last chance, for the petitioner to clear off the entire 'overdue' amount and to have the loan account regularised. It is stated that a total sum of Rs.30,140/- as on 11.6.2010 with further interest is due in respect of the default instalment. 5. In the above circumstances, the petitioner is directed to satisfy the entire 'overdue' amount forthwith, at any rate, on or before the 30th of June; on which event, the loan account will W.P.(C) No.9187/2010 5 stand regularised. This will be in addition to the liability of the petitioner to remit the regular EMIs as well. It is made clear that if any default is committed in satisfying the 'overdue' amount as above, or if any two consecutive defaults are made with regard to the regular EMIs, the respondents will be at liberty to proceed with further steps for realisation of the entire amount in lump sum. It is also made clear that no petition for enlargement of time will be entertained under any circumstance with regard to the liability to clear the 'overdue' amount on or before 30.6.2010. The Writ Petition is disposed of as above. (P.R.RAMACHANDRA MENON, JUDGE) ps W.P.(C) No.9187/2010 6