IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 9TH JUNE 2010 / 19TH JYAISTHA 1932 WP(C).No. 17103 of 2010(K) -------------------------- PETITIONER: --------------- P.B.PADMASUMAN,S/O.BHASKARAN.P.K., PANDARATHARA HOUSE, MACHAYATH PARAMBU, KEDAMANGALAM, N.PAPRAVUR PO,ERNAKULAM-683 513. BY ADV. SRI.AJITH KRISHNAN RESPONDENTS: --------------- 1. BRANCH MANAGER, BANK OF INDIA, EZHIKKARA BRANCH, NORTH PARAVUR. 2. AUTHORISED OFFICER & CHIEF MANAGER, BANK OF INDIA, KERALA ZONAL OFFICE,KALOOR, ERNAKULAM. STANDING COUNSEL MR.C.A.JOY THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J -------------------------------------------- WP(C) NO. 17103 OF 2010 -------------------------------------------- Dated this the 9th day of June, 2010 JUDGMENT The petitioner availed a housing loan from the respondent Bank in the year 2007 creating security interest over the property in question. But the repayment was not effected on time as scheduled, which made him a defaulter, when the Bank declared the account as 'NPA' and proceeded with the steps under the SARFAESI Act, which is under challenge in this Writ Petition. 2. The learned counsel for the petitioner submits that the petitioner effected a payment of Rs.25,000/- as borne by Ext.P1 and it is without any regard to the payments effected by the petitioner that the coercive proceedings are being pursued by the Bank. 3. The learned counsel for the Bank submits on instructions, that the total outstanding arrears under the loan transaction is nearly Rs.4.53 lakhs, as given in Ext.P2 issued in March, 2010; simultaneously adding that the 'overdue' amount is Rs.70,000/- plus interest from September 2009. Considering the fact that the loan facility extended to the petitioner is in housing loan sector, this Court finds it fit and proper to have the loan account regularised, on clearing the entire 'overdue' amount. 4. In the above circumstance, the petitioner is directed to clear 2 WP(C) No. 14103/2010 the 'overdue' amount within one month; on which event, the loan account shall stand regularised. The payment made as per Ext.P1 shall be given due credit to, with regard to the liability to satisfy the 'overdue' amount as above. This will be in addition to the liability of the petitioner to satisfy the regular EMIs as well. Subject to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance for the time being. It is also made clear that, if any default is committed by the petitioner in satisfying the 'overdue' amount as above, or if any 'two' consecutive defaults are made with regard to the regular EMIs, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum, by pursuing such exercise from the stage where it stands now. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc