IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 27TH JANUARY 2010 / 7TH MAGHA 1931 WP(C).No. 1616 of 2010(B) --------------------------------------- PETITIONER(S): ------------------------ SANTHOSH KUMR B.R., SUSHMA SADAN, THONNAKKAL P.O., THIRUVANANTHAPURAM. BY ADVS. MR.B.S.SWATHY KUMAR, SMT.P.A.ANITHA. RESPONDENT(S): --------------------------- 1. THE KERALA STATE CO-OPERATIVE BANK LTD., THIRUVANANTHAPURAM REPRESENTED BY ITS MANAGING DIRECTOR. 2. THE AUTHORISED OFFICER/REGIONAL MANAGER-IN-CHARGE, THE KERALA STATE CO-OPERATIVE BANK LTD., REGIONAL OFFICE, THIRUVANANTHAPURAM. R1 & R2 BY ADV. MR.NAGARAJ NARAYANAN,SC,K.S.CO-OP BANK LTD. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27/01/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss P.R. RAMACHANDRAMENON, J - - - - - - - - - - - - - - - - - - - - - - - W.P.(C) No.1616 of 2010 - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 27th day of January, 2010 J U D G M E N T The petitioner had availed a mortgage loan of Rs.8 lakhs in the year 2005, but it was not chosen to be repaid on time, which made the petitioner a chronic defaulter. In the said circumstance, there was no other alternative for the bank, but to declare the account as NPA and proceed 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 appearing for the petitioner submits that the default occurred was only because of the sudden down fall of business. However, steps are stated as being taken, to clear the overdue amount. 3. The learned counsel appearing for the respondent bank submits, on instructions, that the total outstanding W.P.(C) No.1616 of 2010 -2- amount under the loan transaction will come around Rs.13.5 lakhs with interest and costs and if at all intention is to have the loan account regularised, the petitioner will have to clear the 'overdue amount' of about Rs.6.20 lakhs with interest and costs. 4. Considering the submissions made by the learned counsel appearing for the petitioner, the petitioner is permitted to clear the 'overdue' amount, giving some breathing time. Accordingly, the petitioner is directed to deposit an amount of Rs.1 lakh on or before the 5th February 2010 and the balance amount shall be cleared by way of 'two' equal installments, the first of which shall be effected on or before the 27th of February 2010 and the next one on or before the 31st March 2010. Subject to this, all further recovery proceedings stated as being pursued against the petitioner pursuant to Ext.P3 shall be kept in abeyance. On satisfying the said requirement, as agreed by the bank, the loan account of the petitioner will stand regularised and the W.P.(C) No.1616 of 2010 -3- petitioner will be bound to effect regular EMIs without fail. 5. 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 realisation of the entire amount in a lump sum. As put forthwith by the learned counsel appearing for the respondent, it is recorded that the bank agrees to waive the 'penal interest' in respect of the overdue amount, if the entire loan transaction is closed by paying the amount due, which comes to nearly 13.5 lakhs. It will be open for the petitioner to act upon the above course, if he so desires. The writ petition is disposed of as above. P.R.RAMACHANDRA MENON (JUDGE) nl