IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 30TH JUNE 2010 / 9TH ASHADHA 1932 WP(C).No. 16304 of 2010(K) -------------------------- CRMP.2086/2010 of CHIEF JUDL.MAGISTRATE, ERNAKULAM .................... PETITIONER(S): --------------- 1. K.K.PRAVEEN, S/O. KARUNAKARAN, KUDILIL HOUSE, NEAR PONNURUNNI TEMPLE, VYTTILA, KOCHI - 682 019, 2. LATHA PRAVEEN, W/O.K.K. PRAVEEN, KUDILIL HOUSE, NEAR PONNURUNNI TEMPLE, VYTTILA, KOCHI - 682 019, BY ADV. SRI.C.J.JOY RESPONDENT(S): --------------- 1. THE AXIZ BANK LTD., 41/418, FIRST FLOOR, CHICAGO PLAZA, RAJAJI ROAD, KOCHI - 682 035, REPRESENTED BY ITS VICE PRESIDENT. 2. THE ASSISTANT VICE PRESIDENT AND AUTHORISED OFFICER, AXIS BANK LTD., 41/418, FIRST FLOOR, CHICAGO PLAZA, RAJAJI ROAD, KOCHI - 682 035, ADV. SRI.G.BALAMURALEEDHARAN (PARAVUR) FOR R1,2 SRI.N.T.NANDAKUMAR (PARAVUR) FOR R1,2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No.16304 of 2010-K ---------------------------- Dated this the 30th day of June, 2010. J U D G M E N T The petitioners availed housing loan of Rs.45 lakhs from the first respondent Bank in the year 2006, creating security interest over the property in question. But the petitioners 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. When the matter came up for consideration before this Court on 27.5.2010, coercive steps were intercepted, on condition that the petitioners deposited a sum of Rs.1 lakh within two weeks. It is stated as complied with. 3. The learned counsel for the petitioners submits that the default was never wilful but because of some unforeseen circumstances and that earnest efforts are being made by the petitioners to clear the overdue amount at the earliest. W.P(C) No.16304 of 2010-K 2 4. The learned counsel for the Bank submits on the instructions that, the action pursued by the Bank being strictly in conformity with the statutory requirements, is not assailable under any circumstances. The learned counsel further submits that the total 'overdue' amount will come to Rs.5.92 lakhs and after deducting the amount of Rs.1 lakhs already satisfied by the petitioner pursuant to the interim order, an amount of Rs.4.92 lakhs plus further interest is liable to be cleared by the petitioner in respect of the defaulted instalments. Unless and until the said amount is paid, the question of regularisation is not liable to be entertained; submits the learned counsel. 5. Considering the facts and circumstances, the petitioner is permitted to clear the 'overdue' amount by way of 'four' equal monthly instalments; the first of which shall be effected on or before the 30th of July, 2010; to be followed by similar instalments to be effected on or before the 30th of the succeeding months; on which event, the loan account shall stand regularised. This is in addition to the liability of the petitioner to clear the regular EMIs. Subject to the above, all further coercive proceedings pursuant to W.P(C) No.16304 of 2010-K 3 Ext.P4 shall be kept in abeyance. It is also 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 made regarding payment of the regular EMIs, it will open to the Bank, 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