IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 9TH OCTOBER 2009 / 17TH ASWINA 1931 WP(C).No. 27533 of 2009(J) -------------------------- CMP.2080/2009 of C.J.M.,TRIVANDRUM .................... PETITIONER(S): --------------- VIJAYAKUMAR, AGED 33, S/O. SREEDHARA PANICKER, MEKKUMKARA KUZHIYAR PUTHEN VEEDU, VAZHICHAL, KUTTAMALA.P.O., NEYYATTINKARA TALUK, THIRUVANANTHAPURAM DIST. BY ADV. SRI.R.T.PRADEEP SRI.V.VIJULAL RESPONDENT(S): --------------- 1. THE AUTHROSED OFFICER/CHIEF MANAGER, THE FEDERAL BANK LTD., REGIONAL OFFICE, FEDERAL TOWERS, STATUE, THIRUVANANTHAPURAM. 2. THE BRANCH MANAGER, THE FEDERAL BANK LTD., AMBOORI BRANCH. 3. S.ANITHA, W/O. VIJAYAKUMAR, KUZHIYAR PUTHEN VEEDU, VAZHICHAL, KUTTAMALA.P.O. NEYYATTINKARA TALUK, THIRUVANANTHAPURAM DIST. ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL) FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).27533/09 APPENDIX PETITIONER'S EXHIBITS:- EXT.P1:- COPY OF RLEVANT PAGES OF PASS BOOK OF LOAN OF THE PETITIONER EXT.P2:- COPY OF C.M.P.NO.2080/09 DT.12.5.09 EXT.P3:- COPY OF ORDER DT.7.9.09 IN C.M.P.2080/09 EXT.P4:- COPY OF REQUEST DT.22.9.09 BY COMMISSIONER BEFORE POLICE. RESPONDENT'S EXHIBITS:- NIL okb //True Copy// P.A. to Judge C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.27533 OF 2009 ------------------------------ Dated this the 9th day of October, 2009 J U D G M E N T ---------------------- 1. Petitioner had availed a housing loan to the tune of Rs.5 lakhs from the 2nd respondent Bank during the year 2006. The loan was agreed to be repaid in equal monthly installments of Rs.6000/- each within a total period of 15 years. But after effecting payment to the tune of about Rs.40,000/- the petitioner defaulted payment and no amount was paid in the loan account since May 2007 onwards. Consequently the respondents 1 and 2 had proceeded with steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) against the immovable property mortgaged, which is the secured asset. The Chief Judicial Magistrate was approached under Section 14(1) and an advocate commissioner has already been appointed to take over actual possession of the property. The petitioner rushed to this court at this stage with an offer that he is ready and willing to make payment of the defaulted installments by selling a portion of the property within a reasonable time. According to the petitioner he had approached the Bank with such a proposal but it was not acceded to. W.P.(C).27533/09-J 2 2. Heard standing counsel for respondents 1 and 2. It is submitted that since May 2007 onwards there was no repayment in the loan account and the loan account was categorised under NPA with effect from 31.3.2008 onwards. It is further submitted that the amount pertaining to the defaulted installments alone will come around Rs.2.5 lakhs. Since the loan is continued in chronic default the Bank is opposing the request of the petitioner for permitting regularisation. 3. Having considered facts and circumstances of the case and contentions on both sides, I am inclined to show indulgence in permitting regularisation of the loan account, taking note of the fact that the secured asset is the residential building of the petitioner. Accordingly the writ petition is disposed of directing the petitioner to make payment of the defaulted installments along with interest overdue and expenses if any incurred by the Bank, in 4 equal monthly installments starting from 15.11.2009 and on or before 15th day of the succeeding months. The petitioner shall also continue to pay the regular installments due from November 2009 onwards along with the above payments. If payment as above is made and the defaulted amount is cleared, the respondent Bank will permit the petitioner to continue payment of the balance amount as per the original schedule of repayment. 4. It is made clear that on the event of default in W.P.(C).27533/09-J 3 payment of any of the amount stipulated above the respondents 1 and 2 will be free to take further steps pursuant to the order already issued by the Chief Judicial Magistrate and on such event the petitioner will be precluded from raising any further challenge against such proceedings before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb