IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 19325 of 2010(M)
1. MOHAMMED K.,AGED 39 YEARS,
... Petitioner
Vs
1. THE KASARAGOD DISTRICT CO-OPERATIVE
... Respondent
2. AUTHORISED OFFICER,
For Petitioner :SRI.SURESH KUMAR KODOTH
For Respondent :SRI.M.SASINDRAN,SC,KASARGOD DIST.CO.BAN
The Hon'ble MR. Justice P.R.RAMACHANDRA MENON
Dated :08/07/2010
O R D E R
P.R. RAMACHANDRA MENON J.
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W.P. (C) No. 19325 of 2010
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Dated, this the 8th day of July, 2010
JUDGMENT
The petitioner availed a housing loan Rs. 2.5 lakhs from the
respondent Bank in May 2006, creating security interest over the
property in question. But, the repayments were not all prompt, which
made the respondents to proceed with the steps under the SARFAESI
Act, after declaring the account as ‘NPA’, which in turn is subjected to
challenge in this Writ Petition.
2. The learned counsel for the petitioner submits that, the default
was never wilful, but because of some unforeseen circumstances,
including the hospitalization of the brother of the petitioner, incurring
huge expenditure, as revealed from Ext.P1 medical report. The learned
counsel further submits that, the loan availed by the petitioner pertains
to ‘housing sector’; that its tenure will end only in May, 2011 and that
the petitioner may be permitted to clear the ‘overdue’ amount by way of
reasonable installments and to have the loan account regularized. It is
also stated that, the petitioner does not intend to avail the statutory
remedy and that the limited relief pressed for is only to grant the benefit
of installments.
3. The learned counsel for the respondents submits, on
instructions that, the course pursued by the Bank is strictly in conformity
W.P. (C) No. 19325 of 2010
: 2 :
with the statutory requirements. The learned counsel further submits
that, a total sum of Rs. 2,99,919/- plus further interest and expenses
has to be remitted by the petitioner to wipe off the entire liability.
4. Taking note of the particular facts and circumstances and that
the loan provided by the Bank is in the ‘housing sector’, this Court finds
it fit and proper to provide some breathing time to the petitioner to wipe
off the entire liability. Accordingly the petitioner is directed to deposit a
sum of Rs. 50,000/ on or before the 30th of this month and balance by
way of ‘four’ equal monthly installments; the first of which shall be
effected on or before the 30th August, 2010 to be followed by similar
installments to be effected on or before the 30th of the succeeding
months. Subject to this, the coercive proceedings stated as being
pursued against the petitioner shall be kept in abeyance, for the time
being. It is made clear that, if the petitioner commits any default in
clearing the liability as above, the respondents will be at liberty to
proceed with further steps for realization of the entire amount in lump
sum.
The Writ Petition is disposed of accordingly
P. R. RAMACHANDRA MENON, JUDGE
kmd