IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 29TH JUNE 2010 / 8TH ASHADHA 1932 WP(C).No. 19923 of 2010(M) -------------------------- PETITIONER(S): --------------- 1. ABOOBACKER ACHATH, S/O. KUNJANKUTTY, ACHATH HOUSE, PUNNATHALA P.O., VETTICHIRA, MALAPPURAM. 2. BHAGAVATHI PARAMBIL PATHUMMA, W/O. ABOOBACKER ACHATH, ACHATH HOUSE, PUNNATHALA P.O., VETTICHIRA, MALAPPURAM. BY ADV. SRI.P.VENUGOPAL (1086/92) RESPONDENT(S): --------------- 1. HOUSING DEVELOPMENT FINANCE CORPORATION LTD., MALAPPURAM BRANCH, REPRESENTED BY ITS MANAGER - 676 519. 2. AUTHORIZED OFFICER, HOUSING DEVELOPMENT FINANCE CORPORATION LTD., H.D.F.C.HOUSE, RAVIPURAM JUNCTION, M.G.ROAD, KOCHI-682 015. BY ADV. SRI.K.K.CHANDRAN PILLAI (SC FOR HDFC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J. ------------------------------- W.P.(C) No.19923 OF 2010 ------------------------------- Dated this the 29th day of June, 2010 J U D G M E N T The petitioners availed three different loans from the respondent Bank, to an extent of Rs.25 lakhs, Rs.14 lakhs and Rs.5 lakhs respectively, creating security interest over the property in question. But repayments were not effected on time, under which circumstance, the accounts were declared as 'NPA' and the Bank proceeded with further steps to cause the property to be sold in public auction, which is under challenge in this Writ Petition. 2. On receipt of notice under Section 13(2) of the SARFAESI Act on 5.2.2009 showing the total outstanding amount as nearly Rs.45 lakhs, the petitioners made arrangements to wipe of the liability procuring amounts from different corners, and accordingly, a sum of about Rs.29 lakhs was satisfied in May, 2009, and the issue is only with regard to the balance. W.P.(C) No.19923/2010 2 3. The learned Standing Counsel appearing for the respondents Bank, on instructions, submits that, by virtue of the payments effected by the petitioners, two loan accounts have already been closed and that the major loan in respect of borrowal of a sum of Rs.25 lakhs alone remains to be settled. The learned Standing Counsel further submits that the outstanding amount in the said account is nearly Rs.18,75,980/-. 4. The learned counsel appearing for the petitioners submits that the bonafides on the part of the petitioners may be appreciated, who infact have chosen to repay major portion of the balance amount. The learned counsel further submits that the petitioners do not intend to challenge the correctness of sustainability of the steps taken by the Bank by approaching the DRT, and that the limited prayer now pressed before this Court is to permit the petitioners to wipe of the entire liability by way of reasonable installments. 5. Taking note of the factual position as above and the positive steps taken by the petitioners to clear the liability W.P.(C) No.19923/2010 3 and further that the loan extended by the Bank is in the Housing Sector, this Court finds it fit and proper to permit the petitioners to clear the liability in a phased manner. Accordingly, the petitioners are permitted to clear the liability by way of 'ten' equal monthly installments, the first of which shall be effected on or before 30.7.2010, to be followed by similar installments to be effected on or before the 30th of the succeeding months. Subject to the above, the recovery proceedings initiated against the petitioners shall be kept in abeyance. However, it is made clear that if any default is committed by the petitioner in effecting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realisation of the amount in a lump sum, from the stage where it stands now. The Writ Petition is disposed of as above. P.R.RAMACHANDRA MENON, JUDGE. nj.