IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 19TH OCTOBER 2009 / 27TH ASWINA 1931 WP(C).No. 10978 of 2009(N) -------------------------- PETITIONER(S): --------------- K.G.RAMESH, S/O.GOVINDA PILLAI, RESIDING AT KALLALIL HOUSE, EDANADU, CHENGANNOOR, ALAPPUZHA. BY ADV. SRI.S.SANAL KUMAR SMT.BHAVANA VELAYUDHAN RESPONDENT(S): --------------- 1. THE FEDERAL BANK LIMITED, REGISTERED OFFICE, ALWAYS REPRESENTED BY ITS REGIONAL OFFICER. 2. THE BRANCH MANAGER, FEDERAL BANK LIMITED, CHENGANNUR BRANCH, ALAPPUZHA. ADV. SRI.MOHAN JACOB GEORGE FOR R1-2 SMT.P.V.PARVATHI FOR R1-2 SMT.REENA THOMAS FOR R1-2 SRI.L.RAM MOHAN FOR R1-2 SRI.N.JAMES AUGUSTINE FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C). APPENDIX PETITIONER'S EXHIBITS:- EXT.P1:- TRUE COPY OF THE DISCHARGE SUMMARY. EXT.P2:- TRUE COPY OF THE NOTICE DT.12.2.09 EXT.P3:- TRUE COPY OF THE REPRESENTATION DT.18.3.09 EXT.P4:- TRUE COPY OF THE REPLY OF R2 DT.23.3.09 EXT.P5:- TRUE COPY OF THE PLAINT IN O.S.24/09 EXT.P6:- TRUE COPY OF THE TREATMENT RECORDS OF ARAVIND EYE HOSPITAL, PONDICHERY. RESPONDENT'S EXHIBITS:- EXT.R2(A):- TRUE COPY OF THE LETTER DT.4.7.97 CONFIRMING THE DEPOSIT OF TITLE DEEDS BY THE PETITIONER. EXT.R2(B):- TRUE COPY OF THE WRITTEN STATEMENT DT.26.5.09 FILED BY THIRUVALLA PRIMARY CO-OP:AGRICULTURAL & RURAL DEVELOPMENT BANK LTD, CHENGANNOOR BRANCH IN O.S.24/09 OKB //TRUE COPY// P.A. TO JUDGE C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.10978 OF 2009 ------------------------------ Dated this the 19th day of October, 2009 J U D G M E N T ---------------------- 1. Petitioner availed a home loan from the 2nd respondent Bank in the year 1997, which was agreed to be repaid in 180 equal monthly installments of Rs.3284/- each. According to the petitioner he had made prompt repayments till the year 2000 and thereafter it became defaulted due to serious illness of the petitioner's son. It is submitted that the petitioner's son is continuing treatment. Consequent to default in repayment, the respondent Bank initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), and notice under Section 13(2) of the Act was issued. The petitioner submitted representation expressing his readiness to pay off the liability within a reasonable time, but the Bank has not positively responded. It is also contended that the Bank had filed a civil suit for realisation of the amounts due and the same is pending. Under the above circumstances, apprehending coercive steps under the SARFAESI Act the petitioner is approaching this court, seeking directions for permitting regularisation of loan account. W.P.(C).10978/09-N 2 2. In the counter affidavit filed by the 2nd respondent it is contended that after availing the loan, the petitioner had defaulted payment and on his request a rescheduling was done during the year 2004. But even thereafter the petitioner defaulted regular payments of monthly installments. It is further contended that the petitioner had created further charges on the property, which was mortgaged to the respondent Bank by pledging it again to another Co-operative Bank. Considering the entire facts and circumstances the Bank is not at all favouring regularisation of the account. 3. Pursuant to interim orders issued by this Court on 6.4.2009 and on 16.10.09 the petitioner had effected payment of an amount of Rs.1,00,000/-. It is submitted that the balance outstanding at present is about Rs.2,30,000/-. Learned counsel for the petitioner submitted that the petitioner is ready and willing to pay off the entire liability, within a reasonable time in installments. 4. Having considered the rival contentions and facts and circumstances of the case I am of the opinion that the writ petition can be disposed of permitting the petitioner to pay off the entire balance in installments. 5. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.50,000/- on or W.P.(C).10978/09-N 3 before 15.11.09. On payment of the said amount the respondent Bank will furnish a balance statement to the petitioner showing the net amount outstanding, after crediting all payments and after considering waiver of interest/penal interest to the possible extent. The petitioner shall continue to pay the balance so intimated in 4 (four) equal monthly installments starting from 15.12.09 and on or before 15th day of the succeeding 3 months. 6. It is made clear that if payment of any of the amounts as stipulated above is defaulted, the respondents are free to proceed with further steps pursuant to the notices already issued and on such event the petitioner will be precluded from raising any subsequent challenge before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb