IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 20TH NOVEMBER 2009 / 29TH KARTHIKA 1931 WP(C).No. 32632 of 2009(Y) -------------------------- PETITIONER(S): --------------- M.M.JAYAKUMAR, AGED 37 YEARS, S/O.MADHAVAN, AMAL SYSTEMS AND SERVICES, VYAPAR MANDIR, PALARIVATTOM. BY ADV. SRI.N.K.MOHANLAL RESPONDENT(S): --------------- 1. STATE BANK OF TRAVANCORE, PALARIVATTOM, REPRESENTED BY ITS BRANCH MANAGER. 2. AUTHORISED OFFICER, STATE BANK OF TRAVANCORE, TRESSED ASSETS RESOLUTION CENTRE, ZONAL OFFICE, SBT BHAVAN, PANAMPILLY NAGAR, ERNAKULAM. BY ADV. SRI.SATHISH NINAN, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 32632 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 20th day of November, 2009 J U D G M E N T 1. Petitioner is approaching this court aggrieved by the coercive steps initiated under Section 14 (1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to failure in repayment of loan availed from the 1st respondent Bank, immovable property belonging to the petitioner, which he claims to be the residential property, has been proceeded against. According to the petitioner he had approached the respondents with request to permit regularisation by paying the defaulted amounts, which was not acceded to. Hence the writ petition is filed seeking directions for permitting regularisation of the loan account. 2. Learned standing counsel appearing for the respondents on instructions submitted that, the loan availed by the petitioner is a business loan and since the loan W.P.(C)No. 32632 of 2009 -2- account is remaining unpaid it is categorized as NPA. Being a business loan in chronic default regularisation could not be permitted, is the stand of the respondents. Having confronted with the above situation, learned counsel for the petitioner conceded that he will pay off the entire liability within a reasonable time, provided installment facility is granted. 3. Having considered facts and circumstances of the case and submissions on both side, I am inclined to dispose of the matter showing indulgence in permitting the petitioner to pay off the liability within a reasonable time. 4. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.3,50,000/-(Three lakhs fifty thousand only) on or before 15.12.2009. The respondents are directed to keep in abeyance further coercive steps till such date. On payment of the said amount the respondents shall intimate the petitioner about the net balance outstanding after crediting all payments and after considering waiver of W.P.(C)No. 32632 of 2009 -3- interest/default interest to the possible extent. The petitioner shall continue payment of the balance so intimated in five (5) equal monthly installments thereafter, falling due on or before 15.01.2010 and on or before the 15th day of the succeeding months. 5. It is made clear that on the event of failure to pay any of the installments as stipulated as above, the Bank will be free to proceed with further steps pursuant to the notices already issued, and on any such event the petitioner will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/