IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 18TH AUGUST 2010 / 27TH SRAVANA 1932 WP(C).No. 23634 of 2010(D) -------------------------- PETITIONER: --------------- P.R.MADHUKUMAR, AGED 54 YEARS, RESIDING AT SHEELA BHAWAN, KARAKULAM NOW RESIDING AT 'MADHAVAM' PANCHAYAT, SWIMMING POOL, KARAKULAM POST, THIRUVANANTHAPURAM. BY ADV. MR. M.RAMASWAMY PILLAI MR. P.M.JOSEPH RESPONDENTS: --------------- 1. THE AUTHORISED OFFICER, STATE BANK OF INDIA, STRESSED ASSETS RESOLUTION CENTRE, LHO ANNEXE (WING-1), IST FLOOR, CHILD WELFARE COMPLEX, LMS COMPOUND, THIRUVANANTHAPURAM-33. 2. THE STATE BANK OF INDIA, TRIVANDRUM BRANCH, REPRESENTED BY ITS BRANCH MANAGER. BY ADV. MR. R.S. KALKURA, SC FOR SBI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 23634 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 18th day of August, 2010 JUDGMENT The petitioner had availed a housing loan of Rs.3.2 lakhs from the respondent Bank in December 2003, creating security interest over the property in question. But, the repayments could not be effected on time, as scheduled, under which circumstance, the respondent proceeded with further steps under the SARFAESI Act, after declaring the account as 'NPA'. 2. The learned counsel for the petitioner submits that, the petitioner is to retire from the service in March, 2011 and the entire service benefits, to the extent as required to satisfy the liability due to the Bank could be caused to be remitted directly to the Bank; thus seeking for indulgence of this Court, to save the property. 3. The prayer is vehementally opposed from the part of the respondents. The learned counsel for the Bank submits that, much leniency has already been shown to the petitioner and the petitioner is not entitled to have any more concessions. The learned counsel also points out, on the basis of the instructions received, that, the petitioner being a Government employee, working as C.I. Of Police, was earlier given a chance to have the loan account regularized. In spite of this, he did not W.P. (C) No. 23634 of 2010 2 choose to prove his word by his deeds and remained to be a defaulter, under which circumstances, the Bank was constrained to proceed with further steps, which is strictly in conformity with the relevant provisions and not assailable under any circumstances. 4. The learned counsel for the petitioner submits that, the default was never wilful, but because of some unforeseen circumstances and the petitioner may be permitted to clear the liability by way of reasonable installments, simultaneously stating that the petitioner does not intend to challenge the correctness of the proceedings taken by the respondents, availing the statutory remedy under Section 17 of the Act, by approaching the DRT. It is also stated that, once the retirement benefits are obtained, the entire liability will be cleared, without waiting for the due time for further installments to be effected. 5. In the particular facts and circumstances, and also considering the fact that the loan availed by the petitioner pertains to 'housing sector', this Court finds it fit and proper to permit the petitioner to clear the liability in a phased manner. Accordingly, the petitioner is directed to clear the entire liability by way of 'six' equal monthly installments; the first of which shall be paid on or before the 10th of September, 2010; to be followed by similar installments to be effected on or before the 10th the of succeeding months. Subject to this, the coercive proceedings stated as being pursued W.P. (C) No. 23634 of 2010 3 against the petitioner shall be kept in abeyance, for the time being. It is made clear that, if the petitioner commits any default in clearing outstanding liability as above, the respondents 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. P. R. RAMACHANDRA MENON, JUDGE kmd