IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : HE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 15TH MARCH 2010 / 24TH PHALGUNA 1931 WP(C).No. 8550 of 2010(P) ------------------------- PETITIONER(S): --------------------- R.CHANDRAN, S/O.LATE K. RAMAN, AGED 40 YEARS, C.P.BROTHER, THANGARAJ GOWNDER NAGAR, CHADAYANKALAI, KANIJIKODE WEST, PALAKKAD DISTRICT - 678 623. BY ADV. MR. BINOY VASUDEVAN SMT. P.G. BABITHA RESPONDENT(S): ----------------------- 1. THE HOUSING DEVELOPMENT FINANCE CORPORATION OF INDIA, REPRESENTED BY ITS AUTHORISED OFFICER, HDFC HOUSE, NO.29, KAMARAJ ROAD COMBATORE- 641 018. 2. THE HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED, COMBATORE BRANCH, REPRESENTED BY ITS MANAGER. R1 & R2 BY K.K. CHANDRAN PILLAI, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ W.P.(C).No. 8550 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Dated this the 15th day of March, 2010 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ J U D G M E N T The petitioner had availed a loan of Rs.2 lakhs in the year 2003 and another extended facility in the year 2005 to an extent of Rs.70,000/-. The petitioner defaulted satisfying the installments, under which circumstance, the respondent bank declared the account as NPA and proceeded with further steps under the SARFAESI Act, which forms the subject matter of challenge, in this writ petition. 2. The learned counsel appearing for the petitioner submits that, the default was never wilful but due to some unforeseen circumstances. It is also stated that, the petitioner is ready and willing to wipe off the entire liability, and prays for some breathing time by way of reasonable installments. W.P.(C).No. 8550 of 2010 2 3. The learned Standing Counsel appearing for the respondent bank submits on instructions that, as on date, an amount of Rs. 4.5 lakhs is due, so as to clear the entire liability and that the petitioner has to prove his bonafides by effecting payment of substantial portion of the liability. 4. After hearing both sides, this Court finds that the petitioner can be permitted to clear the outstanding liability in a phased manner. Accordingly, the petitioner is directed to deposit a sum of Rs.2 lakhs (Rupees Two lakhs only) on or before the 30th of this month and balance shall be cleared by way of 5 equal installments, the first of which shall be effected on or before the 30th of April 2010, to be followed by similar installments, to be effected on or before the 30th of the succeeding months. Subject to this, all recovery proceedings which are being pursued against the petitioner shall be kept in abeyance. It is also made clear that, if any default is made in satisfying the amounts as above, it will be W.P.(C).No. 8550 of 2010 3 open to the respondent bank to proceed with further steps, in accordance with law, for the realisation of the entire amount in a lump sum. The writ petition is disposed of as above. P.R. RAMACHANDRA MENON JUDGE nl