IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 27TH MAY 2010 / 6TH JYAISHTA 1932 WP(C).No. 15803 of 2010(A) -------------------------- PETITIONER: --------------- P.V.RAVI, S/O.VELUNNY, PULIYATHPARAMBIL HOUSE, ERAVIMANGALAM, TRICHUR - 680751. BY ADV. SRI.C.A.CHACKO SMT.C.M.CHARISMA SRI.N.A.SHAFEEK SRI.M.S.UNNIKRISHNAN (OASIS) RESPONDENTS: --------------- 1. THE AUTHORIZED OFFICER, M/S.CANARA BANK, WEST PALACE ROAD, THRISSUR. 2. THE MANAGER, CANARA BANK, THRISSUR WEST PALACE ROAD BRANCH, THRISSUR - 1. BY ADV. MR. P. GOPINATH MENON, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27/05/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 15803 OF 2010 ......................................................................... Dated this the 27th May , 2010 J U D G M E N T The petitioner has approached this Court challenging the steps taken under the SARFAESI Act for realisation of the amount stated as due under a 'Cash Credit Facility' availed in the year 2007. It is brought to the notice of this Court that a loan of Rs. Nine lakhs was obtained by the petitioner creating security interest over the property in question. Since repayment was not effected as specified , there was no other alternative for the respondent Bank, but to proceed with further steps under the SARFAESI Act, after declaring the account of the petitioner as 'NPA'. The learned Counsel for the petitioner submits that the default was never wilful, but because of some unforeseen circumstances including the fact that the petitioner was laid up for quite long and that every earnest effort is being made to clear the overdue amount forthwith and to have the loan account regularised . 2. The learned Counsel for the respondent Bank submits on instruction that this is a case where absolutely no leniency is W.P.(C) No. 15803 OF 2010 2 warranted. It is stated that despite the liability of the petitioner to have satisfied the regular E.M.Is, which admittedly comes to more than Rs. Nine thousand, the petitioner has remitted only a sum of Rs.5170/- so far and as such, there is absolutely no merit in the submission that he is ready and willing to clear the overdue amount by way of installments . It is stated that the total outstanding liability of the petitioner is about Rs. 11,18,875/- and the overdue amount will come to Rs.3,73,000/-. The learned Counsel further submits that unless and until the petitioner proves his bonafides by clearing the 'over due' amount forthwith, the prayer for regularisation of the loan account is not liable to be entertained. 3. The learned Counsel for the petitioner made persuasive submissions projecting the ill-fated events that the petitioner was facing and sought for indulgence of this Court, giving one more opportunity as the last chance, so as to enable him to put back his business on the track. 4. After hearing the rival submissions, this Court finds that one more chance can be given to the petitioner and accordingly, the petitioner is directed to satisfy the entire 'overdue' amount by W.P.(C) No. 15803 OF 2010 3 way of 'four' E.M.Is, the first of which shall be effected on or before 15.06.2010, to be followed by similar installments to be effected on or before the 15th of the succeeding months. It is also made clear that the petitioner shall continue to effect the regular E.M.Is as originally stipulated, besides clearing the arrears as above. The loan will stand regularised accordingly and all coercive proceedings shall be kept in abeyance. It is further made clear that if the petitioner commits any default in remitting the 'overdue' amounts/arrears as above or in the event of committing two consecutive defaults in respect of the regular E.M.Is payable, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire outstanding liability in a lump sum, pursuing the steps, from the stage where it stands now. The Writ Petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. lk