IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 30TH JULY 2010 / 8TH SRAVANA 1932 WP(C).No. 19937 of 2010(N) --------------------------------------- PETITIONER(S): ------------------- 1. K.LATHEEF,KUNNATH HOUSE, P.O.VARAM, KANNUR. 2. K.MARIYAM,W/O.K.LATHEEF, KUNNATH HOUSE,P.O.VARAM, KANNUR. BY ADV. SRI.K.RAJESH SUKUMARAN RESPONDENT(S): ----------------------- CHIEF MANGER,STATE BANK OF TRAVANCORE, KANNUR MAIN ROAD,PLATINUM CENTRE, FORT ROAD, KANNUR. STANDING COUNSEL MR.T.SETHUMADHAVAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J. --------------------------- W.P.(C) No. 19937 OF 2010 -------------------------- Dated this the 30th day of July, 2010 J U D G M E N T The petitioners had availed a 'cash credit' facility and a 'housing loan' from the respondent bank creating security interest over the property in question. Since the repayments were not effected promptly, accounts were declared as 'NPA' and steps were initiated under the SARFAESI Act. Petitioners had earlier approached this Court by filing W.P.(C) No.37252 of 2009, which culminated in Ext.P1 judgment, whereby the coercive proceedings were intercepted for the time being, enabling the petitioners to clear the overdue amount as specified and to satisfy the future EMIs without fail. Case of the petitioners is that even though earnest efforts were being taken to wipe off the overdue amount and to have the loan account regularised, they could not honour the commitment as they were struck hard by the unforeseen circumstances whereby they had to incur a heavy expenditure to the tune of Rs.15 lakhs for the treatment of their daughter aged 17 years who was suffering from 'blood cancer'; whose life however could not be saved. It is in the said circumstances that the petitioners are again before this WPC No.19937/2010 2 Court. 2. It was taking note of the particular facts and circumstances, the coercive proceedings were intercepted by this Court, as per the interim order dated 25.6.2010, whereby the petitioners were directed to deposit a sum of Rs.One lakh within two weeks, which is stated as complied with. 3. Learned standing counsel appearing for the bank submits on instructions that, after giving credit to the said amount of Rs.One lakh, the balance amount under the 'cash credit facility' is nearly Rs.6,68,290/-. It is stated that the 'overdue' amount under the 'housing loan' is Rs.1,51,000/-. The learned counsel for the petitioners submits that the petitioners have made some other arrangements to clear the entire 'overdue' amount under the 'housing loan' by way of three equal monthly installments, simultaneously adding that the entire balance amount under the 'cash credit facility' will be satisfied in a phased manner, for which indulgence is sought for. 4. Considering the above submissions, this Court as a special case, permits the petitioners to have the 'housing loan' regularised on condition that the petitioners satisfy the entire WPC No.19937/2010 3 'overdue' in 'three' equal monthly instalments; the first of which shall be effected on or before 30th of August, 2010; to be followed by similar instalments to be effected on or before the 30th of the succeeding months, subject to which, the housing loan account shall stand regularised. This shall be in addition to the regular EMIs as well. The arrears under the CC account shall be cleared by the petitioners by way of 'eight' equal monthly instalments; the first of which shall be effected on or before 30th of August, 2010; to be followed by similar instalments to be effected on or before the 30th of the succeeding months. If any default is made by the petitioners in fulfilling the instalment amounts in respect of the arrears under both the loans or if any two consecutive defaults are made in remitting the regular EMIs of the housing loan, the respondents will be free to proceed with further steps for realisation of the entire amount in a lump, from the stage where it stands now. The writ petition is disposed of. P.R.RAMACHANDRA MENON (JUDGE) vps WPC No.19937/2010 4 WPC No.19937/2010 5