IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN FRIDAY, THE 25TH JULY 2008 / 3RD SRAVANA 1930 WP(C).No. 20617 of 2008(D) -------------------------- PETITIONER: ------------------ SANTHOSH G.S., NEW TRADE LINKS, 'PAVITHRAM', VALIYASALA, THIRUVANANTHAPURAM 695 036 BY ADVS. SRI.N.NANDAKUMARA MENON (SR.) SRI.P.K.MANOJKUMAR SMT.SUSHYA RAJAN RESPONDENTS: --------------------- 1. THE PANJAB NATIONAL BANK, HOUSING FINANCE LIMITED, 9TH FLOOR ANTRIKSH BHAWAN, 22, KASTURBA GANDHI MARG, NEW DELHI-110 001. 2. THE AUTHORISED OFFICER, P.N.B.HOUSING FINANCE LIMITED, BRANCH OFFICE, 4TH FLOOR, CAPITAL TOWERS, STATUE JUNCTION, THIRUVANANTHAPURAM 695001. 3. PANJAB NATIONAL BANK, HOUSING FINANCE LIMITED, CAPITAL TOWERS, STATUE JUNCTION, THIRUVANANTHAPURAM 695 001, REPRESENTED BY ITS MANAGER. BY ADV. SRI.P.RADHAKRISHNAN (1) FOR R2 SRI.MADHU RADHAKRISHNAN FOR R2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 25/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No. 20617/08 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 : THE PHOTOSTAT COPY OF THE SANCTIONING LETTER DATED 4.12.2002 ISSUED BY THE AUTHORISED SIGNATORY PNB HOUSING FINANCE LIMITED TO THE PETITIONER. EXHIBIT P2 : THE PHOTOSTAT COPY OF THE LETTER DATED 7.12.2002 ISSUED BY THE RESPONDENTS 1 & 2 TO THE PETITIONER. EXHIBIT P3 : THE PHTOSTAT COPY OF THE LETTER NO. 594 DATED 27.10.2004 ISSUED BY THE AUTHORISED SIGNATORY PNB HOUSING FINANCE LIMITED, TRIVANDRUM. EXHIBIT P4 : THE PHOTOSTAT COPY OF THE STATEMENT OF ACCOUNTS ACCOUNT NO. 6660000166 DATED 1.7.2008 ISSUED BY THE PNB HOUSING FINANCE LTD. TO THE PETITIONER. EXHIBIT P5 : THE PHOTOSTAT COPY OF THE STATEMENT OF ACCOUNTS ACCOUNT NO. 6660000594 DATED 1.7.2008 ISSUED BY THE PNB HOUSING FINANCE LTD. TO THE PETITIONER. EXHIBIT P6 : THE PHTOSTAT COPY OF THE NOTICE DATED 3.5.2008 ISSUED BY THE AUTHORISED OFFICER, PNB HOUSING FINANCE LTD. TO THE PETITIONER. EXHIBIT P7 : THE PHTOSTAT COPY OF THE OBJECTION DATED 6.5.2008 FILED BY THE PETITIONER TO THE MANAGER PNB HOUSING FINANCE LTD. NEW DELHI – 11001. EXHIBIT P8 : THE PHOTOSTAT COPY OF THE LETTER DATED 15.5.2006 ISSUED BY THE SENIOR VICE PRESIDENT, PNB HOUSING FINANCE LIMITED TO THE PETITIONER. EXHIBIT P9 : THE PHTOSTAT COPY OF THE NOTICE DATED 3.7.2008 ISSUED BY THE AUTHORISED OFFICER, PNB HOUSING FINANCE LTD. TO THE PETITIONER. EXHIBIT P10 : THE PHOTOSTAT COPY OF THE REPRESENTATION DATED 3.7.2008 SUBMITTED BY THE PETITIONER TO THE SENIOR VICE PRESIDENT PNB HOUSING FINANCE LTD. NEW DELHI. EXHIBIT P11 : THE PHOTOSTAT COPY OF THE SUMMONS ISSUED BY THE JUDICIAL 1ST CLASS MAGISTRATE COURT -III, TRIVANDRUM TO THE PETITIONER. EXHIBIT P12 : THE PHTOSTAT COPY OF THE CHEQUE NO. 430606 DATED 23.3.2006 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER. EXHIBIT P13 : THE PHOTOSTAT COPY OF THE STATEMENT OF ACCOUNT DATED 22.11.2005 ISSUED BY THE THIRD RESPONDENT TO THE PETITIONER. W.P.(C) No. 20617/08 :2 : EXHIBIT P14 : THE PHOTOSTAT COPY OF THE CHEQUE NO. 937592 RS. 3460/- DATED 20.9.2005 SUBMITTED BY THE PETITIONER TO THE THIRD RESPONDENT. EXHIBIT P15 : THE PHOTOSTAT COPY OF THE CHEQUE NO. 937594 RS. 3460/- DATED 20.9.2005 SUBMITTED BY THE PETITIONER TO THE THIRD RESPONDENT. EXHIBIT P16 : THE PHOTOSTAT COPY OF THE CHEQUE NO. 937593 RS. 3460/- DATED 20.9.2005 SUBMITTED BY THE PETITIONER TO THE THIRD RESPONDENT. EXHIBIT P17 : THE PHOTOSTAT COPY OF THE CHEQUE NO. 937595 RS. 3460/- DATED 20.9.2005 SUBMITTED BY THE PETITIONER TO THE THIRD RESPONDENT. EXHIBIT P18 : THE PHOTOSTAT COPY OF THE CHEQUE NO. 937600 RS. 3460/- DATED 20.9.2005 SUBMITTED BY THE PETITIONER TO THE THIRD RESPONDENT. EXHIBIT P19 : THE PHOTOSTAT COPY OF THE CHEQUE NO. 937597 RS. 3460/- DATED 20.9.2005 SUBMITTED BY THE PETITIONER TO THE THIRD RESPONDENT. EXHIBIT P20 : THE PHOTOSTAT COPY OF THE CHEQUE NO. 937598 RS. 3460/- DATED 20.9.2005 SUBMITTED BY THE PETITIONER TO THE THIRD RESPONDENT. EXHIBIT P21 : THE PHOTOSTAT COPY OF THE CHEQUE NO. 937599 RS. 3460/- DATED 20.9.2005 SUBMITTED BY THE PETITIONER TO THE THIRD RESPONDENT. EXHIBIT P22 : THE PHOTOSTAT COPY OF THE NOTICE DATED NIL ISSUED BY THE THIRD RESPONDENT TO THE PETITIONER. /TRUE COPY/ P.A TO JUDGE. vkm S.SIRI JAGAN, J ================== W.P(C)No. 20617 of 2008 ================== Dated this the 25th day of July, 2008. J U D G M E N T The petitioner is challenging proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 initiated by the respondents for recovery of loan amounts due from the petitioner to the bank. However, the petitioner now seeks only a facility to permit the petitioner to regularise the account by paying the defaulted instalments in lump sum and paying future instalments as per the loan agreement on the due dates. The 2nd respondent has filed a statement which reads thus: “This hon'ble court had directed the 2nd respondent to file a statement as to the conditions and safeguards normally insisted on by the 2nd respondent for the purpose of regularizing the account of the defaulting customers who are proceeding under SARFAESI Act. As instructed, it is submitted that in order to regularize the defaulted account, this hon'ble court may direct the petitioner to comply with the following obligations which are normally insisted by the 2nd respondent Institution: 1. Regularise the loan account by paying the overdue amount upto dated ie in the case of the petitioner an amount of Rs.70846/-(both a/cs) till July 2008. Further EMI, interest and other charges shall be payable along with this amount after 31.7.2008. W.P(C)No. 20617 of 2008 - 2 - 2.Supplementary Agreement and Balance Confirmation Letters to be signed by Borrowers as well as Guarantors for both the accounts 3. ECS (Electronic Clearance System) mandate to be given for facilitating monthly remittance of loan installment for both the accounts 4. Six post dated cheques each to be issued on both the accounts” In view of this offer made by the 2nd respondent, I dispose of this writ petition with a direction that, if petitioner complies with the above said four conditions stated by the bank, the respondents shall regularise the loan account of the petitioner and permit the petitioner to pay future instalments as per the loan agreement. The conditions shall be complied with within two weeks. However, if the petitioner commits default in complying with any of the above said condition, it would be open to the respondents to continue proceedings as now initiated without having to issue any fresh notice or proceedings. If the petitioner complies with the above conditions further proceedings shall be kept in abeyance. S.SIRI JAGAN, JUDGE rhs