IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNSDAY, THE 26TH MAY 2010 / 5TH JYAISHTA 1932 WP(C).No. 15668 of 2010(G) -------------------------- PETITIONERS: --------------- 1. AJITHA P.B., W/O.VALSAN T.A., THONIPARAMBIL HOUSE, ERAVIMANGALAM, TRICHUR-680 751. 2. VALSAN T.A., S/O.AROMUNNY T.S. THONIPARAMBIL HOUSE, ERAVIMANGALAM, TRICHUR-680 751. BY ADV. MR. C.A.CHACKO MS. C.M.CHARISMA MR. N.A.SHAFEEK MR. 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. ADV. MR. P.GOPINATH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26/05/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 15668 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 26th day of May, 2010 JUDGMENT The petitioners have approached this Court challenging the steps taken by the respondent Bank, invoking the provisions under the SARFAESI Act, for realization of the amount stated as due under a loan transaction. 2. Case of the petitioners is that, they availed a 'housing loan' in the year 2007 creating security interest over the property in question. But the repayment could not be effected as scheduled, under which circumstances, the respondent Bank declared the account as 'NPA' and proceeded with further steps to take over the possession of property in question and to be sold in public auction. 3. The learned counsel appearing for the Bank submits, on instructions that, the petitioners are chronic defaulters and the over due amount till date is Rs.2,24,000/-, whereas total liability under the loan transaction will be nearly Rs. 10,75,850/-. It is also stated unless and until, the petitioners clear the entire 'over due' amount, the prayer for regularization is not liable to be entertained. 4.The learned counsel for the petitioners submits that, the petitioners will deposit Rs.50,000/- tomorrow itself and the balance W.P. (C) No. 15668 of 2010 : 2 : 'overdue' will be cleared by way of 3 equal monthly installments. 5. In the above circumstances, this Court finds it fit and proper to permit the petitioners to have one more chance for having the loan account regularized. The petitioners are directed to deposit a sum of Rs.50,000/- as assured and to pay the balance overdue amount by way of '3' equal monthly installments; the first of which shall be paid on or before the 15th June, 2010; to be followed by similar installments to be effected on or before the 15th of the succeeding months. This will be in addition to the petitioners' liability to clear the regular EMIs as well. Subject to this, the coercive proceedings stated as being pursued against petitioner shall be kept in abeyance for the time being. It is made clear that if the petitioners commit any default in effecting the installments, as aforesaid, or if two consecutive defaults are made with regard to regular EMIs, the respondents will be at liberty to proceed with further steps for realization of the entire amount in lump sum. The Writ Petition is disposed of accordingly. P. R. RAMACHANDRA MENON, JUDGE kmd