IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 18TH JUNE 2008 / 28TH JYAISHTA 1930 WP(C).No. 32687 of 2007(N) -------------------------- PETITIONER: ------------ HENA.C.BABU, VENATTUCHIRAYIL, CHIRAKKADAVOM, KAYAMKULAM. BY ADV. SRI.S.MOHANAN RESPONDENT: ------------- THE AREA MANAGER, L.I.C.HOUSING FINANCE LTD., LEELA TOWERS, KESAVADASAPURAM, THIRUVANANTHAPURAM. BY ADV. SRI.R.S.KALKURA FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S.SIRI JAGAN, J. ================== W.P.(C).No.32687 of 2007 ================== Dated this the 18th day of June, 2008 J U D G M E N T The petitioner is a defaulter in repayment of loan amount due from her to the respondent. The respondent has initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, for coercive recovery, which is under challenge in this writ petition. The petitioner's contention is that as per the loan agreement repayment was spread over 15 years and the last instalment is to be paid only on 31.12.2008. According to her, for default in payment of some instalments, she should not be made to pay the entire loan amounts immediately. She offers to pay off the entire defaulted amounts due with interest and securitisation charges and other expenses incurred by the respondent. On that condition she seeks a direction to the respondent to regularise the loan account and to allow her to continue paying the future instalments of repayment of loan as per the loan agreement. 2. This is opposed by the standing counsel for the respondent. He would submit that the petitioner was given sufficient opportunity to pay off the amounts and that only w.p.c.32687/07 2 because the bank was certain that the petitioner would not pay off the amounts, they have initiated proceedings under the Act. 3. After hearing both sides, I feel that a lenient attitude can be taken in the matter to enable the petitioner to pay off the entire defaulted amount with interest and securitization charges and other expenses incurred by the respondent. Accordingly, this writ petition is disposed of as follows: If the petitioner pays off the entire defaulted instalments due with interest, securitisation charges, and other expenses incurred by the respondent within 20 days from today, the respondent shall accept the same and regularise the loan account allowing the petitioner to pay the future instalments on the due dates as per the original loan agreement. If the petitioner complies with the above direction promptly, further proceedings for coercive recovery shall be kept in abeyance. However, if the petitioner commits default in payment of the amounts as directed above or any of the future instalments, it would be open to the respondent to continue the proceedings as now initiated without having to issue any fresh notice or proceedings in that regard. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge w.p.c.32687/07 3