IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 7TH JULY 2010 / 16TH ASHADHA 1932 WP(C).No. 20577 of 2010(V) -------------------------- CMP.1042/2010 of C.J.M.,TRIVANDRUM .................... PETITIONER: --------------- JULY, W/O. JERALD, NEAR CHAMPAVU PALLY, THONNIKKADAVU, KADAKKAVOOR. TRIVANDRUM. BY ADV. SRI.K.RAJESH KANNAN SRI.HARIKUMAR.N. RESPONDENT: --------------- STATE BANK OF TRAVANCORE, REPRESENTED BY ITS CHIEF MANAGER, KADAKKAVOOR BRANCH, KADAKKAVOOR, TRIVANDRUM. BY ADV. MR. R.S. KALKURA, SC, SBT. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 20577 OF 2010 ......................................................................... Dated this the 7th July, 2010 J U D G M E N T The petitioner had availed a term loan of Rs.2.5 lakhs from the respondent Bank creating security interest over 2.25 cents of land. But the repayment could not be effected on time, which made the petitioner a defaulter, and the Bank proceeded with further steps invoking the provisions under the SARFAESI Act, which is under challenge in this Writ Petition. 2. The learned Counsel for the petitioner submits that the default was never wilful, but because of the compelling circumstance that the husband of the petitioner, who was the co-borrower of the above loan, happened to lose his employment abroad and that inspite of the adverse circumstances, earnest arrangements are being made to clear the entire due amount, seeking for the benefit of regularisation of the loan account. 3. The learned Standing Counsel for the Bank submits that W.P.(C) No. 20577 OF 2010 2 the tenure of the loan was 7 years from 27.05.2006 and because of the default, the outstanding liability is more than Rs. 3.5 lakhs as on 01.10.2009. The learned Counsel also submits that the overdue amount itself is Rs. 1,66,666/- as on 07.07.2010 and unless and until the said amount is cleared the question of regularisation is not liable to be entertained. 4. The learned Counsel for the petitioner submits that the petitioner is ready and willing to clear the entire overdue amount within two months by way of two equal monthly installments and will continue to pay the regular E.M.Is without fail. 5. In the above circumstances, this Court finds it fit and proper to give one more opportunity for getting the loan account regularised, by permitting the petitioner to clear the overdue amount in a phased manner. Accordingly, the petitioner is directed to clear the 'overdue' amount by way of 'two' equal monthly installments, the first of which shall be remitted on or before 30.07.2010 to be followed by the next installment to be effected on or before 30.08.2010. Subject to satisfaction of the W.P.(C) No. 20577 OF 2010 3 overdue amount, the loan account will stand regularised and all coercive proceedings shall be kept in abeyance. It is also made clear that the petitioner shall continue to effect the regular E.M.Is as originally stipulated, besides clearing the arrears as above. It is further made clear that if the petitioner commits any default in remitting the overdue amount as above or in the event of committing two consecutive defaults in respect of the regular E.M.Is payable, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire outstanding liability in a lump sum, pursuing the coercive steps, from the stage where it stands now. The Writ Petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. lk