IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 22ND JULY 2010 / 31ST ASHADHA 1932 WP(C).No. 15356 of 2010(T) -------------------------- PETITIONER(S): --------------- E.RAGHAVAN NAIR,S/O.KUNHAMBU NAIR AGED 60,PANOOR,THOTTATHIMOOLA HOUSE KOTOOR P.O,MOBLIYAR VILLAGE,KASARGOD. BY ADV. SRI.S.JIJI RESPONDENT(S): --------------- 1. THE KASARGOD DISTRICT CO-OPERATIVE BANK LTD,REPRESENTED BY ITS GENERAL MANAGER PB NO.48,NAYAKS ROAD,KASARGOD. 2. THE AUTHORIZED OFFICER/P.A TO PRESIDENT THE KASARGOD DISTRICT CO-OPERATIVE BANK LTD PB NO.48,NAYAKS ROAD,KASARGOD. ADV. SRI.M.SASINDRAN,SC,KASARGOD DIST.CO.BAN FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No.15356 of 2010-T ---------------------------- Dated this the 22nd day of July, 2010. J U D G M E N T The petitioner availed a 'housing loan' of Rs.1.7 lakhs from the respondent Bank in June 2006, creating security interest over the property in question. But the repayment could not be effected on time. This made the petitioner a defaulter and the Bank declared the account as 'NPA' and proceeded with steps under the relevant provisions of the SARFAESI Act, which is under challenge in this Writ Petition. 2. The learned counsel for the Bank submits on instructions that, right from the beginning the petitioner turned to be a chronic defaulter, since the very first EMI, which had to be satisfied on 10.8.2006, was paid by the petitioner only on 8.12.2006. Thereafter only two more EMIs were effected, that too belatedly. In the said circumstances, the account was declared as 'NPA' and several notices sent by registered post, which did not turn to be fruitful. This being the position, the action pursued by the Bank is in conformity with the statutory prescriptions; submits the counsel. W.P(C) No.15356 of 2010-T 2 3. The learned counsel for the petitioner submits that, the default was never wilful but because of huge expenses, incurred by the petitioner in connection with the marriage of two daughters and also in respect of the treatment of his wife. The learned counsel further submits that, the petitioner is a physically handicapped person, having 75% disability certified vide Ext.P5 medical certificate issued by the Medical Board. 4. When the matter came up for consideration before this Court on 19.5.2010, coercive steps were intercepted, on condition that the petitioner deposited a sum of Rs.50,000/- , which is stated as complied with. 5. The learned counsel for the Bank submits on instructions that, the total loan period is for 15 years from June 2006 and that the 'overdue' amount in respect of defaulted instalments will come nearly Rs.86,935/-; without clearing which, the question of regularisation is not liable to be entertained. The learned counsel for the petitioner submits that the petitioner might be given a single opportunity to have the overdue amount cleared and to have the loan account regularised, simultaneously adding that the EMIs will be paid without fail. W.P(C) No.15356 of 2010-T 3 6. Taking note of the persuasive submissions made by the learned counsel for the petitioner, this Court finds it fit and proper to permit the petitioner to have one more opportunity to save his property. Accordingly, the petitioner is permitted to clear the remaining 'overdue' amount and other incidental charges by way of 'two' equal instalments; the first of which shall be effected on or before the 20th of August 2010 and the balance on or before the 20th of September 2010. Subject to this the loan account shall be 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. Sd/- P.R.RAMACHANDRA MENON JUDGE //True Copy// ab P.A to Judge