IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 8976 of 2010(V)
1. SMT.SHEEBA K.M.,
... Petitioner
2. SRI.SAJEEVAN .M.,
Vs
1. THE AUTHORISED OFFICER,
... Respondent
2. SOUTH INDIAN BANK LTD.,
For Petitioner :SRI.ZAKEER HUSSAIN
For Respondent :SRI.GEORGE VARGHESE (MANACHIRACKEL)
The Hon'ble MR. Justice P.R.RAMACHANDRA MENON
Dated :30/03/2010
O R D E R
P.R. RAMACHANDRA MENON, J.
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W.P.(C) No. 8976 OF 2010
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Dated this the 30th March, 2010
J U D G M E N T
The first petitioner had availed a housing loan of Rs. Four
lakhs from the second respondent Bank on the petitioners’
creating security interest over the property in question belonging
to the second petitioner. But the fact remains that the
petitioners were not eager to clear the liability in time, under
which circumstances, the Bank declared the account as ‘NPA’ and
proceeded with further steps, which forms the subject matter of
challenge in this Writ Petition.
2. The learned Counsel for the petitioners submits that the
default was never wilful and the petitioners are ready and
willing to clear the entire liability, provided some breathing time
is given in this regard and that the petitioners might be
permitted to continue to enjoy the benefit of the loan account
after getting it regularised.
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3. The learned Counsel for the respondent Bank submits
that a sum of Rs. One Lakh Five thousand is ‘overdue’ towards
defaulted installments and unless and until the said amount is
cleared forthwith, the request of the petitioners for having the
loan account regularised is not liable to be entertained.
4. After hearing both the sides, this Court finds that the
loan being in the Housing Sector, an opportunity to clear the
overdue amount and to have the loan account regularised can
be given. Accordingly, the petitioners are permitted to clear the
‘overdue’ amount by way of ‘two’ equal monthly installments,
the first of which shall be paid on or before 15.04.2010 and the
second one on or before 15.05.2010. It is also made clear that
the petitioners shall continue to effect the regular E.M.Is as
originally stipulated, besides clearing the arrears as above. The
loan will stand regularised accordingly and all coercive
proceedings shall be kept in abeyance for the time being. It is
further made clear that if the petitioners commit any default in
remitting the overdue amounts/arrears as above or in the event
of committing two consecutive defaults in respect of the regular
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E.M.Is payable, the respondent Bank will be at liberty to proceed
with further steps for realisation of the entire outstanding liability
in a lump sum, pursuing the coercive steps, from the stage where
it stands now.
The Writ Petition is disposed of.
P.R. RAMACHANDRA MENON,
JUDGE.
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