IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 4TH DECEMBER 2009 / 13TH AGRAHAYANA 1931 WP(C).No. 34562 of 2009(M) -------------------------- PETITIONER(S): --------------- 1. SUNIL M., S/O.MADHAVAN PILLAI, VADEKKETHAZHATHIL HOUSE, KUREEPUZHA P.O, PERINAD, KOLLAM. 2. MRS.LAILA.S, W/O.SUNIL.M, VADEKKETHAZHATHIL HOUSE, KUREEPUZHA P.O, PERINAD, KOLLAM. BY ADV. SMT.S.SUJINI RESPONDENT(S): --------------- 1. SOUTH INDIAN BANK, REPRESENTED BY THE REGIONAL MANAGER, REGIONAL OFFICE, HOTEL SAFA INTERNATIONAL BUILDING, MALAYALA MANORAMA ROAD, THIRUVANANTHAPURAM-695014. 2. SOUTH INDIAN BANK, REPRESENTED BY THE CHIEF MANAGER, P.B.NO.122, BISHOP JEROME NAGAR COMMERCIAL COMPLEX, CHINNAKADA, KOLLAM. ADV. SRI.GEORGE VARGHESE,SC,SOUTH INDIAN BAN FOR R1-R2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - - - - - - W.P. (C) No. 34562 OF 2009 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 4th day of December, 2009 J U D G M E N T Petitioners are aggrieved by coercive steps initiated under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002(SARFAESI Act) against the immovable property, which is the secured asset as far as the loan transaction availed by the petitioner from the respondent Bank. Petitioners availed a housing loan in the year 2008 to the tune of Rs. 1,50,000/-. The loan was agreed to be repaid in equal monthly installments at the rate of Rs.17,180/-, within a period of 20 years. Consequent to default committed in repayments, the respondent had categorized the transaction as 'NPA', on 30.06.2009 and steps under the SARFAESI Act was initiated. Eventhough various contentions are raised challenging the proceedings, the petitioners submits that they are ready and willing to regularize the account by paying the defaulted amounts, provided reasonable time for payment is granted. WPC.34562 of 2009 : 2 : 2. The learned Standing Counsel appearing for the respondent Bank submitted that the construction of the building for which the loan was taken stands still incomplete and the petitioners have defaulted payments of installments. Therefore, the bank is not favouring regularization of the loan account. 3. Having considered rival submissions and facts and circumstances of the case, I am of the opinion that some indulgence can be shown in the matter of permitting the petitioner in regularizing the loan account within a reasonable time. 4. Accordingly, the writ petition is disposed of directing the petitioner to make payments of the entire amount pertaining to the defaulted installments along with interest and expenses if any due, in five (5) equal monthly installments falling due on or before 15.1.2010 and on or before the 15th day of the succeeding months. It is made clear that the petitioner shall also make payment of the regular installments due from January 2010 onwards, along with the above payments. If the payments as directed above is made and the WPC.34562 of 2009 : 3 : defaulted arrears is cleared, the respondents shall permit the petitioner to continue payment of future EMIs as per the original schedule of repayment. It is made clear that on the event of default committed in payment of any of the installments, the respondents will be free to proceed with further steps pursuant to the notices already issued and on such event the petitioner will be precluded from raising any subsequent challenge against such decision either before this court or before any forum. ( C.K. ABDUL REHIM, JUDGE) jma