IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 16TH OCTOBER 2009 / 24TH ASWINA 1931 WP(C).No. 28123 of 2009(I) -------------------------- PETITIONER(S): --------------- NAJUMA SALEEM, 'SITHARA', KAVALAYOOR P.O., ATTINGAL, THIRUVANANTHAPURAM DISTRICT. BY ADV. SRI.A.B.MOHANAKUMAR RESPONDENT(S): --------------- 1. THE SOUTH INDIAN BANK LTD., REGIONAL OFFICE, HOTEL SAFA INTERNATIONAL BUILDING, P.B.NO.473, MALAYALA MANORAMA ROAD, THIRUVANANTHAPURAM-595014, REP. BY ITS CHIEF MANAGER(AUTHORISED OFFICER). 2. THE MANAGER, THE SOUTH INDIAN BANK LTD., KADAKKAVUR BRANCH, KADAKKAVUR P.O., THIRUVANANTHAPURAM. ADV. SRI.K.K.JOHN,SC,SOUTH INDIAN BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.28123 OF 2009 ------------------------------ Dated this the 16th day of October, 2009 J U D G M E N T ---------------------- 1. Petitioner's husband, who is an NRI working abroad, had availed a housing loan from the respondent Bank to the tune of Rs.33,50,000/- during the year 2007. The petitioner and her son are guarantors to the loan transaction and immovable property belonging to the husband was mortgaged in order to secure the loan. As per terms of the loan agreement the amount was to be repaid in equal monthly installments of Rs.52,300/- within a period of 5 years. According to the petitioner repayment to the tune of Rs.3,58,000/- has already been effected. However on default in continued payment of installments the respondent Bank had categorised the loan account as NPA, and proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. Ext.P2 is the notice issued under Section 13(2) of the Act. Contention of the petitioner is that there was no default to the extent which warranted categorising loan account as NPA going by the norms prescribed by the Reserve Bank of India. However, the W.P.(C).28123/09-T 2 petitioner expressed his willingness to regularise the loan account by paying off the defaulted amounts along with interest if any overdue. 2. Heard, standing counsel appearing for the respondents, who on the basis of instructions submitted that the loan account was categorized as NPA only on the basis of continued default committed by the petitioner. It is submitted that inspite of offer of the petitioner to regularise the account before December 2009, no effective steps have so far been taken. 3. Having considered submissions on both sides and facts and circumstances of the case, I am of the opinion that some indulgence can be shown in the matter for permitting the petitioner to regularise the account. 4. Accordingly the writ petition is disposed of directing the petitioner to remit the entire amount pertaining to the defaulted installments along with overdue interest and expenses if any liable, in 3 (three) equal monthly installments on or before 31.10.09 and on or before the last day of succeeding 2 months of November and December 2009. It is also made clear that the petitioner shall pay the regular installments due with respect to the month of October 2009 to December 2009 along with the above said payments. If payment as stipulated above is made W.P.(C).28123/09-T 3 without any default the respondent Bank will permit the petitioner to continue with the further payment of balance amount as per the original schedule of the repayment. 5. It is made clear that on the event of default in paying any of the amounts as stipulated above the respondents will be free to take further steps pursuant to notices already issued and on such event the petitioner will be precluded from raising any challenge against such proceedings before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb