IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 13TH AUGUST 2010 / WPCD SRAVANA 1932 WP(C).No. 24375 of 2010(V) -------------------------- PETITIONERS: --------------- 1. S.PEETHAMBARAN, AGED 60 YEARS, S/O. SREEDHARAN, VATHIKATTU HOUSE, AVALOOKUNU.P.O. ALAPPUZHA. 2. KAVITHAMOL, AGED 40, W/O S.PEETHAMBARAN, VATHIKTTU HOUSE, AVALOOKUNU.P.O., ALAPPUZHA. BY ADV. SRI.K.C.SUDHEER RESPONDENT(S): --------------- 1. SOUTH INDIAN BANK, ALAPPUZHA BRANCH, S.D. PHARMACY BUILDIGS, REP. BY ITS BRANCH MANAGER. 2. REGIONAL OFFICE, SOUTH INDIAN BANK LTD., HAFSAL SAFA INTERNATIONAL BUILDING, THIRUVANANTHAPURAM-14 REP. BY ITS CHIEF MANAGER. 3. AUTHORISED OFFICER, SOUTH INDIAN BANK REGIONAL OFFICE, SOUTH INDIAN BANK LTD., HAFSAL SAFA INTERNATIONAL BUILDING, THIRUVANANTHAPURAM-14 4. THE STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY TO THE GOVERNMENT, GOVERNMENT SECRETARIAT, THIRUVANATHAPURAM. 5. UNION OF INDIA, REPRESENTED BY FINANCE SECRETARY, DEPARTMENT OF FINANCE, UNION OF SECRETARIAT, NEW DELHI. R1 TO R3 BY ADV. SRI.GEORGE VARGHESE,SC,SOUTH INDIAN BANK R5 BY GOVERNMENT PLEADER ADV. MR. BIJOPY CHANDRAN. BR4 BY ADV. T.P.M. IBRAHIM KHAN, ASST. SOLICITOR GENERAL. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) 24375 OF 2010 ......................................................................... Dated this the 13th August, 2010 J U D G M E N T The petitioners had availed a housing loan from the respondent Bank on the strength of the security interest created over the property, agreeing to repay the entire loan amount of Rs.Ten lakhs, to be satisfied by regular installments as specified. But the commitment was never honoured by the petitioners and they turned to be defaulters. In that circumstance, there was no other alternative for the respondent Bank but to proceed with further steps for realisation of the entire amount, declaring the account as NPA, which made the petitioners to approach this Court by filing this Writ Petition. 2. The learned Counsel for the respondent Bank, on instructions, submits that the challenge raised against the steps taken by the Bank is not sustainable under any circumstances, in view of the fact that the Bank has complied with all the statutory formalities and the same is much in order. W.P.(C) 24375 OF 2010 2 It is also brought to the notice of this Court that the overdue amount itself is about Rs.3.47 lakhs and unless and until the said amount is satisfied by the petitioners, the loan account is not liable to be regularised. 3. The learned Counsel for the petitioners submits that every earnest arrangement has been made to clear the overdue amount and that the default was never wilful. The learned Counsel also seeks for some breathing time, simultaneously assuring that the petitioners will clear the regular monthly installments without fail. 4. Considering the facts and circumstances, particularly that the loan is in the 'housing sector' and also taking note of the positive stand taken by the respondent Bank to have the loan account regularised on satisfaction of the overdue amount, there will be a direction to the petitioners to clear the overdue amount by way of 'three' installments, the first of which to the tune of Rs.1.5 lakhs shall be cleared on or before 30.08.2010 and the next two installments shall be satisfied on or before the 30th of the succeeding months. Subject to this , the loan account will W.P.(C) 24375 OF 2010 3 stand regularised and all coercive proceedings shall be kept in abeyance. It is also made clear that the petitioners 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 petitioners commit any default in remitting the overdue amount/arrears 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 such steps, from the stage where it stands now. The Writ Petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. lk