IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 5TH APRIL 2010 / 15TH CHAITHRA 1932 WP(C).No. 5998 of 2010(Y) ---------------------------------- PETITIONER(S): ------------------------- MOHAMMEDKUTTY P., S/O.HASSAN HAJI,. POOZHITHARA HOUSE, PANIKKARPADI, KUTTIPPALA POST, MALAPPURAM DISTRICT. BY ADV. SRI.C.M.MOHAMMED IQUABAL RESPONDENT(S): -------------------------- 1. THE FEDERAL BANK LTD, REGD.OFFICE, ALWAYE, KERALA, REPRESENTED BY ITS GENERAL MANAGER. 2. THE THE FEDERAL BANK LTD, BRANCH OFFICE, KOTTAKKAL, POST KOTTAKKAL, MALAPPURAM DISTRICT, REPRESENTED BY ITS MANAGER. 3. THE AUTHORISED OFFICER THE FEDERAL BANK LTD, REGIONAL OFFICER, THRISSUR. R1 TO R3 BY ADV. SRI.MOHAN JACOB GEORGE , SMT.P.V.PARVATHI, SMT.REENA THOMAS, SRI.L.RAM MOHAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05/04/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No.5998 of 2010-Y ---------------------------- Dated this the 5th day of April, 2010. J U D G M E N T The petitioner had availed a loan of Rs.30 lakhs from the second respondent Bank, but it was not repaid on time, which made the petitioner a chronic defaulter. In the said circumstances, the account of the petitioner was declared as NPA and the Bank proceeded with further steps invoking the provisions under the SARFAESI Act; which in turn is subjected to challenge in this Writ Petition. 2. The learned counsel for the Bank submits on instructions that the steps taken by the Bank are strictly in conformity with the statutory requirement. It is also brought to the notice of this Court that the 'overdue' amount under the loan transaction will come around Rs.5.5 lakhs in respect of the defaulted instalments and that if the petitioner is ready to clear the said amount forthwith, the loan account can be regularized, subject to the condition that the petitioner shall effect the regular EMIs without fail. 3. The learned counsel for the petitioner submits that the W.P(C) No.5998 of 2010-Y 2 petitioner is ready and willing to clear the 'overdue' amount forthwith. 4. Accordingly, the petitioner is directed to clear the entire 'overdue' amount within one month, upon which the loan account will stand regularized and the petitioner shall continue to effect the regular EMIs without fail. It is made clear that in case of any failure to pay the ‘overdue amount’ as above, or if any two consecutive defaults are made in remitting the regular EMIs, the Bank will be free to proceed with further steps for realization of the entire amount in a lump sum. The Writ Petition is disposed of. Sd/- P.R.RAMACHANDRA MENON JUDGE //True Copy// P.A to Judge ab