IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 8TH MARCH 2010 / 17TH PHALGUNA 1931 WP(C).No. 4284 of 2010(I) ------------------------- PETITIONER(S): --------------- ABHILASHKUMAR M.S., S/O. SURENDRAN, AGED 36 YEARS, KOCHUPURAYIL,PERINGALIPURAM, ENNAKKADU VILLAGE, CHENGANNUR TALUK, ALAPPUZHA DISTRICT. BY ADV. SRI.A.SHAFEEK (KAYAMKULAM) RESPONDENT(S): --------------- 1. THE FEDERAL BANK LTD., MAVELIKARA REPRESENTED BY ITS MANAGER. 2. THE AUTHORIZED OFFICER (CHIEF MANAGER), THE FEDERAL BANK LTD., MAVELIKARA REPRESENTED BY ITS MANAGER. ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL) FOR R1 & 2 SRI.P.R.MILTON FOR R1 & 2 SRI.K.J.CHACKOCHAN FOR R1 & 2 GOVERNMENT PLEADER SRI.BIJOY CHANDRAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. ----------------------------------------------- WP(C) No. 4284 of 2010 --------------------------------------- Dated, this the 8th day of March, 2010 J U D G M E N T The petitioner had availed two loans from the respondent Bank, the first one, a housing loan of Rs.3,00,000/- on 06.06.2003 and the other one an IPS (Instalment Payment Scheme) to an extent of Rs.1,50,000/- on 10.08.2004. Since the petitioner could not honour the commitment in repaying the loan amount, there was no other alternative for the Bank but to invoke the machinery under the SARFAESI Act, which hence is under challenge in this Writ Petition. 2. The learned counsel appearing for the Bank submits on instructions that a sum of Rs.94,328/- itself is due towards the defaulted instalments under the housing loan, without clearing which, the question of regularization of the said loan is not liable to be considered. With regard to the other loan, the learned counsel submits that a sum of Rupees 2.05 lakhs is due with further interest and cost and that, by virtue of the very nature of the loan, the Bank is not in a position to regularize the 'IPS loan'. The learned counsel for the petitioner submits that the petitioner might be given some breathing time to clear the due amount in a phased manner. 3. In the above facts and circumstances, the petitioner is WP(C) No.4284/2010 2 permitted to clear the 'overdue' amount under the housing loan by way of ‘three’ 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. 3. With regard to the second loan, i.e., under the IPS, the petitioner is permitted to clear the entire outstanding liability by way of 'five' equal monthly instalments, the first of which shall be effected on or before the 30th of this month and the remaining to be effected on or before the 30th of the succeeding months. Subject to satisfaction of the requirement as above, all recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if any default is committed by the petitioner in satisfying the instalments as above, or if any two consecutive defaults are made with regard to the repayment of regular EMIs in respect of the housing loan, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum. The Writ Petition is disposed of accordingly. P. R. RAMACHANDRA MENON JUDGE dnc