IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 25TH FEBRUARY 2010 / 6TH PHALGUNA 1931 WP(C).No. 37292 of 2009(F) -------------------------- PETITIONER(S): --------------- HAMEED S/O.MOOSA, AGED 49 YEARS, KUTTIPPURATH, P.O.KEEZHAL VATAKARA. BY ADV. SRI.PULIKOOL ABOOBACKER SRI.ZUBAIR PULIKKOOL RESPONDENT(S): --------------- SENIOR MANAGER, THE KOZHIKODE DISTRICT CO-OPERATIVE BANK LTD., BADAGARA. ADV. SRI.P.V.KUNHIKRISHNAN FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. ----------------------------------------------- WP(C) No. 37292 of 2009 ------------------------------------- Dated, this the 25th day of February, 2010 J U D G M E N T The petitioner has approached this Court challenging the steps taken by the Bank, invoking the machinery under the SARFAESI Act. 2. The petitioner had availed a housing loan of Rs. 2.6 lakhs from the respondent Bank in the year 2000 creating security interest over the property of 25.5 cents of land belonging to him. However, the due instalments could not be effected on time; under which circumstance, the Bank declared the account as 'NPA' and proceeded with further steps for realisation of the entire amount invoking the provisions under the SARFAESI Act, which in turn has been subjected to challenge in this Writ Petition. 3. The learned counsel for the respondent Bank, with reference to the statement filed and also on the basis of the further instructions received, submits that the outstanding liability to close the loan account will come to Rs.4,79,521/- as on 01.01.2010. It is also pointed out that a sum of Rs.2,25,951/- itself is due in respect of the 'defaulted instalments' and interest thereon, besides a sum of R.4,070/- towards other incidental expenses. It is also stated that the action pursued by the Bank is in conformity with the relevant provisions of law and not assailable under any circumstance. WP(C) No.37292/2009 2 4. However, taking note of the fact that the loan provided by the Bank is in the 'housing sector', this Court finds it fit and proper to give one more opportunity to the petitioner to clear the outstanding liability towards the defaulted instalments and to have the loan account regularized. In the said circumstance, the petitioner is directed to clear the entire 'overdue' amount with interest and cost by way of ‘two’ equal monthly instalments, the first of which shall be effected on or before the 10th of March, 2010 and the other one on or before the 10th of April 2010. On satisfying the said requirements, the housing loan account of the petitioner shall stand regularized. This will be in addition to the liability to the petitioner to satisfy the regular EMIs as well. It is made clear that if any default is committed by the petitioner in satisfying the said requirements towards the 'overdue' amount, or if any two consecutive defaults are made with regard to the regular EMIs, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum. The Writ Petition is disposed of accordingly. P. R. RAMACHANDRA MENON JUDGE dnc