IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 11TH OCTOBER 2010 / 19TH ASWINA 1932 WP(C).No. 30316 of 2010(L) -------------------------- OS.323/2010 of PRINCIPAL SUB COURT,PARAVUR .................... PETITIONER(S): --------------- 1. MRS.SATHI (AGED 52 YEARS) W/O.SATHEESAN, KUMMAPPILLIL HOUSE, SOUMYA NIVAS, NANTHIYATTUKUNNAM, N.PARAVUR P.O., PARAVUR VILLAGE, PARAVUR TALUK, EKM.DIST. 2. MR.SATHEESAN (AGED 57 YEARS), S/O.RAMANKUTTY, RESIDING AT DO. DO. BY ADV. SRI.G.BALAMURALEEDHARAN (PARAVUR) RESPONDENT(S): --------------- 1. CANARA BANK, BRANCH OFFICE, EZHIKKARA, N.PARAVUR-683 513, EKM. DIST. 2. THE AUTHORISED OFFICER, CANARA BANK, KERALA ZONAL OFFICE, ERNAKULAM-35. STANDING COUNSEL SRI.PAULY MATHEW MURICKEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J ------------------------------- WP(C) NO. 30316 OF 2010 ------------------------------------- Dated this the 11th day of October, 2010 JUDGMENT The petitioners are aggrieved by the coercive steps of recovery initiated against the immovable property, which is the secured asset with respect to a housing loan availed by the first petitioner from the respondent Bank. Consequent to default committed in repayment of monthly instalments, Ext.P1 notice was issued under Section 13 (2) of the Act. It is the case of the petitioners that, the period of repayment of the loan will expire only in the year 2018 and that eventhough the petitioners expressed their willingness to regularise the account by payment of the defaulted amounts, the Bank is proceeding with further steps. 2. The impugned notice is one issued under Section 13 (2) of the Act. As per the provisions, the petitioners are entitled to file objections/representations against the demand and the Bank is at an obligation to 2 WP(C) No. 30316/2010 consider the same. Having not chosen to avail any such remedy, I am of the opinion that this Writ Petition is highly premature. 3. However, learned counsel for the petitioners submitted that the petitioners are relinquishing all challenges against the proceedings initiated, provided they may be permitted to pay off the entire defaulted amounts and to regularise the account. Going by the terms of Master Circular issued by the Reserve Bank of India, it is evident that as and when the arrears is cleared payment, the Bank is at an obligation to reclassify the loan as a 'performing asset'. 4. Under the above mentioned circumstances, I am of the opinion that the petitioner can be permitted to regularise the account by paying the defaulted amounts within a short period. 5. In the result, the Writ Petition is disposed of directing the respondents to keep all further proceedings 3 WP(C) No. 30316/2010 pursuant to Ext.P1 notice in abeyance, provided the petitioners remit the entire defaulted amounts in 2 (two) equal monthly instalments, falling due on or before 30.10.2010 and on or before 30.11.2010. The petitioners shall also make payment of the regular instalments due for the months of October and November, 2010, along with said payments. 6. If payments of defaulted amounts is regularised as directed above, then the respondents shall permit the petitioners to pay all future monthly instalments in accordance with original schedule of repayment. 7. It is made clear that on the event of default in payment of any one of the amounts as stipulated above or any one of the future instalments, the respondents will be free to proceed with further steps pursuant to Ext.P1 notice. It is also made clear that the respondents will be free to pursue the proceedings in the suit which stated to have been filed with respect to the loan transaction. It is further 4 WP(C) No. 30316/2010 made clear that the benefit granted above will be subject to condition that the petitioners are precluded from raising any subsequent challenge against such proceedings. C.K. ABDUL REHIM JUDGE dnc