IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 12TH JULY 2010 / 21ST ASHADHA 1932 WP(C).No. 8287 of 2010(I) ------------------------------------- PETITIONER(S): ----------------------- B.B.SANTHOSHKUMAR, AGED 45 YEARS, S/O.P.BHASKARAN, RESIDING AT BHASKARA MANDIRAM, EZHUKONE P.O., KOLLAM-691 505. BY ADV. SRI.SANTHEEP ANKARATH, SRI.V.C.MADHAVANKUTTY. RESPONDENT(S): -------------------------- 1. CANARA BANK, REPRESENTED BY CHIEF MANAGER (AUTHORISED OFFICER) PUNALUR BRANCH, KOLLAM. 2. SENIOR MANAGER, CANARA BANK, PUNALUR BRANCH, KOLLAM. R1 & R2 BY ADV. SRI.PAULY MATHEW MURICKEN,SC,CANARA BANK. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12/07/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. P.R.RAMACHANDRA MENON, J -------------------------------------------- WP(C) NO. 8287 OF 2010 -------------------------------------------- Dated this the 12th day of July, 2010 JUDGMENT The petitioner is challenging the steps taken by the respondent Bank invoking the remedy under the SARFAESI Act; for realisation of the amount stated as due from the petitioner under some loan transactions. 2. The learned counsel for the petitioner submits that, the default was never wilful, nor because of any deliberate negligence, but because of sudden down fall in the business and that earnest efforts have been taken to wipe off the entire ‘overdue’ amount to have regularization of the loan account. 3. The learned counsel for the Bank submits on instructions that, three loans were there, two of which ‘Term Loans’ and the other one ‘ODCC' given in the year 2007 for a period of one year, which was not renewed subsequently. Right from the beginning, the petitioner was a chronic defaulter and that the overdue amount in respect of the two term loans is stated as about Rs.13 lakhs. The learned counsel submits that, unless and until the entire ‘overdue’ amount in respect of the two term loans is satisfied, the question of regularization is not liable to be entertained. 4. With regard to the 'ODCC' account, the learned counsel 2 WP(C) No. 8287/2010 submits that, eventhough, the said loan is not liable to be regularized, the tenure having been expired and not renewed, on taking up the matter with the higher authorities, the Bank is ready to have it regularized on condition that, the entire outstanding liability of nearly Rs.1.65 lakhs due from the petitioner in respect of yet another loan ('KVVES' business loan) which was availed on 12.02.2007, agreeing to have it repaid within 36 months; which is already over is satisfied. The learned counsel for the petitioner submits that, the petitioner is ready and willing to abide by the condition stipulated by the Bank, asserting that, the petitioner will continue to effect the regular EMIs without fail. 5. In the above circumstances, the petitioner is directed to clear the outstanding arrears in respect of the ‘two term loans’ and the 'KVVES' loan of Rs.1.65 lakhs by way of ‘four’ equal monthly instalments, the first of which shall be effected on or before the 30th of this month, to be followed by similar instalments to be effected on or before the 30th of the succeeding months. On clearing the entire ‘overdue’ amount, the two term loans will stand regularized and the petitioner shall continue to effect the regular EMIs without fail. Simultaneously on clearing the arrears in respect of 'KVVES' loan and on submitting an application, satisfying other incidental formalities as prescribed, the 'ODCC' account of the petitioner shall stand revived. Subject to this, the recovery proceedings stated as being pursued 3 WP(C) No. 8287/2010 against the petitioner shall be kept in abeyance for the time being. It is made clear that, if any default is committed in satisfying the ‘overdue’ amount or if any two consecutive defaults are made with regard to the term loans and if the conditions in connection with the 'ODCC' are not satisfied as aforesaid, the respondents will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum, from the stage where it stands now. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc