IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 22ND JULY 2010 / 31ST ASHADHA 1932 WP(C).No. 20467 of 2010(G) -------------------------- PETITIONER(S): --------------- SANOOJ, S/O. MUHAMMED KUNJU, AGED 28 YEARS, KOLOBHAGATH, VAVVAKKAVU, KARUNAGAPPALLY, KOLLAM. BY ADV. SRI. K.SIJU SRI.PRATHEESH.P SMT.BINDU GEORGE RESPONDENT(S): --------------- THE BRANCH MANAGER, STATE BANK OF TRAVANCORE, SASTHAMCOTTA-690 521. ADV. SRI.R.S.KALKURA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No.20467 of 2010-G ---------------------------- Dated this the 22nd day of July, 2010. J U D G M E N T The petitioner has approached this Court apprehending the steps being taken by the respondent Bank invoking the remedy under SARFAESI Act, for realisaton of the amount stated as due under a loan transaction. The petitioner had availed a medium term loan and cash credit facility for a total sum of Rs.5 lakhs, by creating security interest over the property in question. But the repayment could not be effected as scheduled, which made the petitioner a defaulter and the Bank proceeded with the further steps by issuing Ext.P2 and P3 notices, which made the petitioner to approach this Court after filing Ext.P4 representation, seeking for some time to clear the defaulted EMIs and to have the loan account regularsied. 2. The learned counsel for the Bank submits that, the apprehension expressed from the part of the petitioner is quite out of place and no notice under Section 13(2) of the Act has been issued by the Bank so far. However, it is brought to the notice of this Court that sum of Rs.1.75 lakhs is overdue in respect of the W.P(C) No.20467 of 2010-G 2 MTL and unless and until the said amount is cleared by the petitioner, the question of regularisation of the loan account is not liable to be entertained. The learned counsel further submits that in respect of cash credit facility, a sum of Rs.2,56,000/- is to be cleared by the petitioner and the said account, because of the nature of the loan is not liable to be regularised under any circumstances. 3. The learned counsel for the petitioner submits that, the petitioner is taking earnest efforts to clear the liability and that the petitioner may be permitted to clear the same by way of reasonable instalments. 4. Taking note of the persuasive submissions made by the learned counsel for the petitioner, the petitioner is permitted to clear the 'overdue' amount under MTL loan and the entire dues under the cash credit facility, by way of 'four' equal monthly instalments; the first of which shall be effected on or before the 20th of August, 2010; to be followed by similar instalments to be effected on or before the 20th of the succeeding months. On satisfying the payment as above, the MTL account will stand W.P(C) No.20467 of 2010-G 3 regularised and the petitioner shall continue to effect the regular EMIs without any fail. It is made clear that, in case of any failure to pay the liability as above in respect of the arrears or if any two consecutive defaults are made in remitting the regular EMIs, the respondents will be free to proceed with further steps for realisation of the entire amount in a lump sum. The Writ Petition is disposed of. Sd/- P.R.RAMACHANDRA MENON JUDGE //True Copy// P.A to Judge ab W.P(C) No.20467 of 2010-G 4