IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 17TH JUNE 2010 / 27TH JYAISTHA 1932 WP(C).No. 17785 of 2010(W) -------------------------- PETITIONER: --------------- SANGEETH GANGADHARAN, S/O. GANGADHARAN AGED 35 YEARS, 7/301, KALIMANNAPADAM, KADUNTHURUTHY, KINASSERY.P.O. PALAKKAD-678707. BY ADV. MR. JACOB SEBASTIAN RESPONDENT: --------------- HOUSING DEVELOPMENT FINANCE CORPORATION LTD., REPRESENTED BY AUTHORIZED OFFICER, HDFC HOUSE, NO.29, KAMARAJ ROAD, NEAR CIRCUIT HOUSE, COIMBATORE 641018. BY STANDING COUNSEL MR. K.K. CHANDRAN PILLAI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 17785 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 17thday of June, 2010 JUDGMENT The petitioner availed housing loan of Rs. 13 lakhs from the second respondent Finance Corporation in the year, 2005, creating security interest over the property in question. However the repayment could not be effected on time as scheduled, which made the petitioner a defaulter, under which circumstance the petitioner's account was declared as 'NPA' and the respondent proceeded with the steps under the SARFAESI Act, issuing notice under Section 13 (2) dated 9.3.2010, followed by paper publication effected on 8.5.2010. The case of the petitioner is that, he was working abroad and lost his employment by virtue of global recession and the default was never wilful, but only due to the unforeseen circumstances as above. The learned counsel for the petitioner submits that, every earnest effort is being made to see that entire arrears are wiped off, in order to have the loan account regularized, for which some breathing time is sought for. 2. The learned standing counsel appearing for the Corporation, on instructions submits that, there was no payment at all for nearly 20 months and the 'overdue' itself would come to Rs.3,33,766.936 (correctness of which is however disputed from the part of the petitioner) and that the loan account cannot be regularized. W.P. (C) No.17785 of 2010 : 2 : 3. Absolutely no provision of law is referred to by the respondent as to the stand now taken, stating that the loan cannot be regularized. No reliance is also placed with reference to any Circular issued by the Reserve Bank of India on this point. Considering the fact that the loan facility provided by the Corporation was in the 'housing sector' and since no provision of law is brought to the notice of this Court to sustain the contention of the respondent that the regularization is not possible in the case of the petitioner, once the overdue amount is cleared taking out the loan account from the 'NPA' status as defined under Section 2 (o) of the SARFAESI Act, this Court finds it fit and proper to give one more opportunity to the petitioner to regularize the loan account, by clearing the entire overdue amount. 4. In the above circumstances, the respondent Corporation is directed to serve a copy of the statement showing the 'overdue' amount within one week and the petitioner is directed to clear the entire 'overdue' amount by way of 'three' equal monthly installments; the first of which shall be paid on or before the 15th of July, 2010; to be followed by the next installment to be effected on or before the 15th of August, 2010 and 15th of September, 2010 respectively; on which event, the loan account will stand regularized. This will be in addition to the liability of the petitioner to remit the regular EMIs as well. Subject to this, the coercive proceedings stated as being pursued against the W.P. (C) No.17785 of 2010 : 3 : petitioner shall be kept in abeyance, for the time being. It is made clear that, if the petitioner commits any default in clearing 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 realization of the entire amount in lump sum. The Writ Petition is disposed of accordingly. P. R. RAMACHANDRA MENON, JUDGE kmd