IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 31ST MAY 2010 / 10TH JYAISTHA 1932 WP(C).No. 16333 of 2010(N) -------------------------- CMP.23/2010 of C.J.M.,TRIVANDRUM .................... PETITIONERS: --------------- 1. PLACID ROZARIA, (PROPRIETOR OF M/S. ROZARIO TENT WORKS), RESIDING AT BINU NIVAS, THAIVILAKOM HOUSE, VETTUCAUD, THIRUVANANTHAPURAM. 2. MARGRET PLACID ,W/O.PLACID ROZARIO, RESIDING AT 'BINU NIVAS', THAIVILAKOM HOUSE, VETTUCAUD, THIRUVANANTHAPURAM. BY ADV. MR. G.SUDHEER RESPONDENTS: --------------- SOUTH INDIAN BANK LTD., REGIONAL OFFICE AT HOTEL SAFA INTERNATIONAL BUILDING P.B.NO.473, MALAYALA MANORAMA ROAD, THAMPANOOR, THIRUVANANTHAPURAM REPRESENTED BY ITS AUTHORISED OFFICER (CHIEF MANAGER) BY ADV. MR. K.K.JOHN,SC,SOUTH INDIAN BANK THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 31/05/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 16333 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 31st day of May, 2010 JUDGMENT The petitioners had availed three loans from the respondent Bank in connection with their business, creating security interest over the property in question. But the repayment could not be effected as scheduled, which made the petitioners defaulters and the Bank proceeded with the steps under SARFAESI Act, after declaring the account as 'NPA', which is under challenge in this Writ Petition. 2. The learned counsel for the respondent Bank submits that the steps taken by the Bank are strictly in conformity with the relevant provisions of law and are not assailable under any circumstances. Notice under Section 13 (2) was issued as early as in March, 2008 and since two years have elapsed, the liability has crossed Rs. 20 lakhs. The learned counsel also submits that unless and until the petitioners satisfy the entire 'overdue amount', the question of regularization is not liable to be entertained. 3. The learned counsel for the petitioner submits that, the default was never wilful, but because of the sudden down fall in the business and the petitioners are taking earnest efforts to see that the liability is cleared at the earliest. W.P. (C) No. 16333 of 2010 : 2 : 4. Considering the facts and circumstances, the petitioners are permitted to clear the entire 'overdue' amount by way of 3 equal monthly installments; the first of which shall be effected on or before the 30th June, 2010 to be followed by similar installments to be effected on or before the 30th of the succeeding months, on which event the loan account of the petitioner will stand regularized. This will be in addition to the liability to clear the regular EMIs as well. It is made clear that, if any default is committed by the petitioners in satisfying the over due amount or if any two consecutive defaults are made with regard to the regular EMIs, the respondent Bank will be at liberty to proceed with further steps, for realization of the entire amount in lump sum, from the stage where it stands now. The Writ Petition is disposed of as above. P. R. RAMACHANDRA MENON, JUDGE kmd