IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 15TH JUNE 2010 / 25TH JYAISTHA 1932 WP(C).No. 18064 of 2010(G) -------------------------- PETITIONERS: --------------- 1. JOY.M.A,S/O.KOCHAPPAN,MANGAN HOUSE, KIZHAKKUMPATTUKARA,EAST FORT PO,THRISSUR. 2. USHA JOY,W/O.JOY.M.A,MANGAN HOUSE, KIZHAKKUMPATTUKARA,EAST FORT PO,THRISSUR. 3. ROY.K.J,KATTOOKKARAN HOUSE,FARM ROAD, KUZHUKULL,THRISSUR. BY ADV. MR. JIJO PAUL RESPONDENTS: --------------- 1. AUTHORIZED OFFICER,UNDER THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002, THE CATHOLIC SYRIAN BANK LTD, ZONAL OFFICE, P.B.NO.502,CSB BHAVAN, ST.MARY'S COLLEGE ROAD, THRISSUR-680 020. 2. THE CATHOLIC SYRIAN BANK LTD.,ZONAL OFFICE, PB NO.502,CSB BHAVAN,ST.MARY'S COLLEGE ROAD,THRISSUR-680 020,REPRESENTED BY THE BRANCH MANAGER,EAST FORT BRANCH,THRISSUR. BY SENIOR ADV. MR. B.S KRISHNAN, STANDING COUNSEL MS. K. LETHA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 18064 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 15th day of June, 2010 JUDGMENT The petitioners availed a loan of Rs. 6 lakhs from the respondent Bank in April, 2005 creating security interest over the property in question. But the petitioners could not honour their commitment in repayment; which made the Bank to declare the account as 'NPA' and the Bank proceeded with the steps under the SARFAESI Act, which is under challenge in this Writ Petition. 2. The learned counsel appearing for the Bank submits, on instructions, that the steps pursued by the Bank are strictly in conformity with the relevant provisions of law. It is also brought to the notice of this Court that the outstanding liability is nearly Rs.6.2 lakhs and the 'overdue' amount towards the defaulted EMIs will come about Rs. 1.4 lakhs. Unless and until the entire 'overdue' amount is cleared, the prayer for regularization is not liable to be entertained, submits the learned counsel. 3. Considering the facts and circumstances and taking note of the fact that the loan facility provided by the Bank is in the 'housing sector', this Court finds it fit and proper to permit the petitioners to have the loan account regularized, on condition that, the petitioners deposit W.P. (C) No. 18064 of 2010 : 2 : the entire 'overdue' amount. Accordingly, the petitioners are directed to clear the entire 'overdue' amount, as mentioned above, by way of 'two' equal monthly installments; the first of which shall be paid on or before the 30th of June, 2010; to be followed by the next one to be effected on or before the 30th of July, 2010; on which event, the loan account will stand regularized. This will be in addition to the liability of the petitioners to remit the regular EMIs as well. Subject to this, the coercive proceedings stated as being pursued against the petitioners shall be kept in abeyance, for the time being. It is made clear that, if the petitioners commit 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