IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 24TH JUNE 2010 / 3RD ASHADHA 1932 WP(C).No. 19726 of 2010(M) -------------------------- CMP.2020/2010 of C.J.M., ALAPPUZHA .................... PETITIONER(S): ------------------------ SRI.ABDUL SALAM, AGED 67, S/O.LATE MOHAMMED KUNJU, ROUSIYA MANZIL, ZAKARIYA WARD, ALAPPUZHA. BY ADV. SRI.A.AHZAR RESPONDENT(S): --------------------------- THE ALLEPPEY DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, ALAPPUZHA, REPRESENTED BY ITS AUTHORISED OFFICER. BY ADV. SRI. P.K. VIJAYAMOHANAN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No.19726 of 2010-M ---------------------------- Dated this the 24th day of June, 2010. J U D G M E N T The petitioner availed a consumption loan of Rs.2 lakhs from the respondent Bank in the year 2005, creating security interest over the property in question. But the petitioner could not honour the commitment in repaying the due amount. In the said circumstances, there was no other alternative for the Bank, but to declare the account as 'NPA' and proceed with further steps invoking the provisions under the SARFAESI Act; which in turn is subjected to challenge in this Writ Petition. 2. The learned counsel for the petitioner submits that, the loan period is seven years and as such, the steps now taken against the petitioner are not correct or sustainable. It is also stated that the petitioner has been effecting payment regularly and even going by Ext.P4, the outstanding amount is only Rs.39,391/- plus such other cost and expenses; submits the learned counsel. 3. The learned standing counsel appearing for the respondents submits on instructions that the liability in respect of W.P(C) No.19726 of 2010-M 2 the 'overdue' amount is Rs.49,967/- and unless and until the petitioner clears the entire overdue in respect of the default instalments, the question of regularisation does not arise at all. 4. Considering the facts and circumstances, the petitioner is directed to clear the entire 'overdue' amount by way of 'three' equal monthly instalments; the first of which shall be effected on or before the 20th of July, 2010; to be followed by similar instalments to be effected on or before the 20th of the succeeding months. Subject to this, the loan account of the petitioner shall stand regularised. This, however will be in addition to the liability of the petitioner to clear the regular EMIs as well. It is 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 committed with regard to the regular EMIs, the respondent Bank will be at liberty to proceed with appropriate steps for realisation of the entire amount in a lump sum. The Writ Petition is disposed of. P.R.RAMACHANDRA MENON JUDGE ab