IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN MONDAY, THE 10TH OCTOBER 2011 / 18TH ASWINA 1933 WA.No. 1326 of 2011() --------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.19432/2011 Dated 22/07/2011 .................... APPELLANT(S): PETITIONER ---------------------------------------- PREETHY MATHEW,D/O.A.S.MATHEW, AGED 38 YEARS,APPAKOTTUMURIYIL HOUSE, THURUTHIKKAD.P.O,MALLAPPALLY,PATHANAMTHITTA. BY ADV. SRI.BIJU ABRAHAM RESPONDENT(S): RESPONDENTS ---------------------------------------------- 1. UCO BANK,REPRESENTED BY ITS AUTHORIZED OFFICER,ZONAL OFFICE,ERNAKULAM-31. 2. THE BRANCH MANAGER,UCO BANK,KOTTAYAM BRANCH,CYRILLS TOWER,STATION ROAD, NEAR COLLECTORATE,KOTTAYAM-686001. BY SC SRI.P.V.SURENDRANATH THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10/10/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR, Ag. CJ. & P.S.GOPINATHAN, J ---------------------------------------------- W.A.No. 1326 of 2011 ---------------------------------------------- Dated this the 10th day of October, 2011 JUDGMENT Ramachandran Nair, Ag.CJ Heard counsel for the appellant and the Standing Counsel appearing for the respondent-Bank. 2. The appellant availed a house building loan as well as a business loan from the first respondent-Bank. Default was committed in both the loan accounts and the appellant has already obtained an order from this Court, wherein the learned Single Judge granted instalment facility to clear the business loan. It is submitted in Court that an amount of Rs.1.5 lack is remitted every month by the appellant in terms of the court order covering the business loan. So far as the house building loan is concerned also the appellant has paid Rs.4-5 lacks, though as of now there is an outstanding arrears of Rs.8 lakhs. The appellant's prayer before the learned Single Judge was for regularisation of the house building loan, wherein the loan period is upto 2021. However, the grievance of the appellant is only against the condition imposed by the learned Single Judge to remit the WA.1326/11 2 accrued arrears in two weeks with a direction to the Bank to regularise the account if payment is made as above. Before us counsel for the appellant submitted that the appellant cannot raise Rs.8 lakhs in lump within two weeks. Further, the appellant's counsel submitted that the appellant will be able to clear the accrued arrears in ten equal monthly instalments along with regular EMI without default. 3. Counsel for the respondent-Bank submitted that the appellant is a chronic defaulter and therefore the Bank cannot accept the offer made by the appellant. We feel that if the offer made by the appellant is complied with by her, then the same does not go against the interest of the Bank. However, if default is committed in the instalment facility being granted by us, the appellant will have to take the consequence. Accordingly, we allow the Writ Appeal by modifying the judgment of the learned Single Judge as follows: The appellant will remit one-tenth of the arrears of accrued instalments in the house building loan along with monthly EMI payable every month on or before 31st of this month and the same pattern will continue for another nine months making payment before the last day of WA.1326/11 3 every succeeding month and thereafter the loan will stand regularised for the appellant to clear the arrears in instalments. If any default is committed, then the instalment facility granted by us will stand vacated and the Bank can proceed with recovery. C.N.RAMACHANDRAN NAIR, ACTING CHIEF JUSTICE P.S.GOPINATHAN, JUDGE vgs