IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 6TH APRIL 2010 / 16TH CHAITHRA 1932 WP(C).No. 11946 of 2010(P) -------------------------------------- PETITIONERS: --------------------- 1. JOSE ANTONY, S/O.ANTONY, AGED 48 YEARS, RESIDING AT ALL SAINTS VIEW, HOUSE NO.405/X, KOIVILA, THEVALAKKARA, KOLLAM - 691 590. 2. USHA KUMARI, W/O.JOSE ANTONY, AGED 44 YEARS, RESIDING AT ALL SAINTS VIEW, HOUSE NO.405/X, KOIVILA, THEVALAKKARA, KOLLAM - 691 590. BY ADVS. SRI.J.R.PREM NAVAZ, SMT.SARITHA DAVID CHUNKATH. RESPONDENT: ---------------------- STATE BANK OF INDIA, KOLLAM BRANCH, REPRESENTED BY THE CHIEF MANAGER, STATE BANK OF INDIA, REGIONAL OFFICE, RASMECCC, 2ND FLOOR, RAVI'S ARCADE, NEAR IRON BRIDGE, KOLLAM - 691 013, KOLLAM. BY SRI. N. RAJAGOPALAN NAIR, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/04/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No.11946 of 2010-P ---------------------------- Dated this the 6th day of April, 2010. J U D G M E N T The petitioner had availed a 'housing loan' of Rs.5 lakhs from the respondent Bank, creating security interest over the property in question. Since the petitioner could not satisfy the repayment by way of instalments on time, there was no other alternative for the Bank, but to declare the account as ‘NPA’ and proceed with further steps, invoking the provisions under the SARFAESI Act, which in turn is subjected to challenge in this Writ Petition. 2. The learned counsel for the respondent Bank submits on instruction, that as on date, a sum of nearly Rs.1.2 lakhs is due in respect of defaulted instalments and that, unless and until the petitioner clears the 'overdue' amount, the question of regularization is not liable to be entertained. 3. The learned counsel for the petitioner submits that the petitioner is ready and willing to clear the 'overdue' and that the default occurred was only because of the frustrating pecuniary W.P(C) No.11946 of 2010-P 2 circumstances as projected in this Writ Petition. The learned counsel also submits that one more opportunity may be given to the petitioner and once the loan account is regularized, the petitioner will effect the regular EMIs without fail. 4. In the particular facts and circumstances, this Court finds it fit and proper to permit the petitioner to clear the 'overdue' amount by way of 'two' equal monthly instalments; the first of which shall be effected on or before the 30th of this month and the next one shall be cleared on or before the 30th of May, 2010. Subject to this, the loan account of the petitioner shall stand regularized and this will be in addition to the liability to satisfy the regular EMIs as well. It is made clear that, in case of any failure to pay the 'overdue' amount as above, or if any two consecutive defaults are made in remitting the regular EMIs, the Bank will be free to proceed with further steps for realization of the entire amount in a lump sum. The Writ Petition is disposed of. P.R.RAMACHANDRA MENON JUDGE ab