IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 21ST JANUARY 2011 / 1ST MAGHA 1932 WP(C).No. 1980 of 2011(V) ------------------------- MC.167/2010 of C.J.M.,THODUPUZHA .................... PETITIONERS: -------------------- 1. MANJU P.G., W/O.SURESH P.G., ANEESH BHAVAN, VAZHATHOPPU PO, IDUKKI DISTRICT 685 602. 2. SURESH P.G, S/O. LATE GOPALAN ANEESH BHAVAN, VAZHATHOPPU PO, IDUKKI DISTRICT 685 602. BY ADV. SRI.SAJI VARGHESE KAKKATTUMATTATHIL RESPONDENT: -------------------- HOUSING DEVELOPMENT FINANCE CORPORATION LTD, HDFC HOUSE, P.O.1667, RAVIPURAM JUNCTION, M.G.ROAD, COCHI 682 015, REPRESENTED BY ITS SENIOR MANAGER. ADV. SRI.K.K.CHANDRAN PILLAI, SENIOR ADVOCATE FOR R1 SRI.A.S.SAJUSH PAUL FOR R1 SRI.THOMAS JAMES MUNDACKAL FOR R1 SRI.BOBBY THOMAS FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. = = = = = = = = = = = = WP(C).No.1980 of 2011-V. = = = = = = = = = = = = Dated this the 21st January, 2011. J U D G M E N T Petitioners are husband and wife. Consequent to default committed in repayment of a housing loan availed by them from the respondent bank, steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. On the basis of orders issued by the Chief Judicial Magistrate Court, in exercise of powers under Section 14(1) of the Act, the petitioners were dispossessed from the property which was mortgaged for securing the loan, which contains the residential house wherein they were residing. 2. Contention of the petitioners is that the loan in question was availed only in the year 2006 and the repayment period is for 16 years. It is stated that the WP(C).No.1980 of 2011-V. 2 amount in default pertains only with respect to two monthly instalments. Complaint of the petitioners is that the coercive steps for dispossession was taken without permitting the petitioner to regularise the account by paying the defaulted amounts. 3. Heard, learned standing counsel appearing on behalf of the respondent. It is submitted that the amount due with respect to two monthly instalments is in default, along with interest and other expenses, which will come to around ` 90,000/-. Since the petitioners have defaulted regular payment of the monthly instalments, the respondent bank is insisting for payment of some additional amounts for regularising the account. On that premise it is contended that the petitioners can be permitted to reoccupy the building only on payment of the amounts in default as well as some additional amounts. 4. Noticing the guidelines issued by Reserve Bank of India, which is having statutory force, it is evident that the WP(C).No.1980 of 2011-V. 3 respondent Bank is at an obligation to re-clasify the loan amount as performing asset, once the default is cleared payment. In the case at hand, I take notice of the circumstance that the repayment period is for 15 years and the petitioners had defaulted payment only for two monthly instalments. Under such circumstance I am of the view that the respondent can be directed to permit the petitioners to regularise the account on their making payment of the amount in default along with interest and expenses if any due. 5. Accordingly, the writ petition is disposed of directing the respondents to permit the petitioners to make payment of the entire amount in arrears (defaulted instalments along with interest and expenses if any due) on or before 15.2.2011. If payment of defaulted amount is regularised as directed above, the respondents shall permit the petitioners to reoccupy the residential house and further permit the petitioners to continue payment of future WP(C).No.1980 of 2011-V. 4 monthly instalments in accordance with the original schedule of repayment. 6. It is made clear that on the event of default in payment of any one of the instalments as stipulated above, or in the case of default in payment of any one of the future monthly instalments, the respondents will be free to proceed with further steps pursuant to the orders already issued by the Chief Judicial Magistrate Court and the steps taken under the SARFAESI Act. C.K.ABDUL REHIM, (Judge) Kvs/-