IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 25TH JUNE 2010 / 4TH ASHADHA 1932 WP(C).No. 2789 of 2010(W) -------------------------------- PETITIONER(S): ------------------------- RAMLATH M.C. @ RAMLA M.C., W/O.K.C.SAIDALAVI, PARAYIL HOUSE, KUMMINIPARAMBU, MALAPPURAM DISTRICT. BY ADV. SRI.BABU S. NAIR RESPONDENT(S): ------------------------ 1. THE FEDERAL BANK LTD., MONGAM BRANCH, MALAPPURAM DISTRICT, REPRESENTED BY ITS BRANCH MANAGER. 2. THE AUTHORIZED OFFICER (UNDER THE SARFAESI ACT), THE FEDERAL BANK LTD., REGIONAL OFFICE, MISSION QUARTERS, THRISSUR. ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL) FOR R1-2 SRI.K.J.CHACKOCHAN FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J -------------------------------------------- WP(C) NO. 2789 OF 2010 -------------------------------------------- Dated this the 25th day of June, 2010 JUDGMENT The petitioner had availed a loan of Rs.12 lakhs on 23.03.2006 from the 1st respondent Bank in the year 2006-07, creating security interest over the property in question. There occurred some default, on which event, the Bank declared the account as 'NPA' and proceeded with steps under the SARFAESI Act for realisation of the amount in a lump sum, which made the petitioner to approach this Court by filing the present Writ Petition. 2. The learned counsel appearing for the Bank submits on instructions that, the total outstanding liability to close the loan transaction is more than Rs.14 lakhs and that the 'overdue' amount in respect of the defaulted instalments is Rs.2,77,425/-. Unless and until, the 'overdue' amount is cleared, the question of regularisation is not liable to be entertained, submits the learned counsel. 3. Considering the facts and circumstances, particularly that the loan extended by the Bank is in the 'housing sector', this Court finds it fit and proper to permit the petitioner to have the loan account regularised on clearing the 'overdue' amount. In the said circumstance, the petitioner is directed to clear the entire 'overdue' amount by way of 'six' equal monthly 2 WP(C) No. 2789/2010 instalments, the first of which shall be effected on or before the 20th of the July, 2010, to be followed by similar instalments to be effected on or before the 20th of the succeeding months. This will be in addition to the rights and liberties of the petitioner to clear the regular EMIs as well. It is made clear that, if any default is committed by the petitioner with regard to the 'overdue' amount or if any two consecutive defaults are made with regard to the regular EMIs, the respondents will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum. It is also made clear that, the judgment will not bar the way of the petitioner in clearing entire outstanding liability under the loan transaction seeking to avail the benefit of some or other concessions/allowances, if any. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc