IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 4284 of 2010(I)
1. ABHILASHKUMAR M.S.,
... Petitioner
Vs
1. THE FEDERAL BANK LTD.,
... Respondent
2. THE AUTHORIZED OFFICER (CHIEF MANAGER),
For Petitioner :SRI.A.SHAFEEK (KAYAMKULAM)
For Respondent :SRI.GEORGE VARGHESE (MANACHIRACKEL)
The Hon'ble MR. Justice P.R.RAMACHANDRA MENON
Dated :08/03/2010
O R D E R
P.R. RAMACHANDRA MENON, J.
-----------------------------------------------
WP(C) No. 4284 of 2010
---------------------------------------
Dated, this the 8th day of March, 2010
J U D G M E N T
The petitioner had availed two loans from the respondent Bank, the
first one, a housing loan of Rs.3,00,000/- on 06.06.2003 and the other one
an IPS (Instalment Payment Scheme) to an extent of Rs.1,50,000/- on
10.08.2004. Since the petitioner could not honour the commitment in
repaying the loan amount, there was no other alternative for the Bank but to
invoke the machinery under the SARFAESI Act, which hence is under
challenge in this Writ Petition.
2. The learned counsel appearing for the Bank submits on
instructions that a sum of Rs.94,328/- itself is due towards the defaulted
instalments under the housing loan, without clearing which, the question of
regularization of the said loan is not liable to be considered. With regard to
the other loan, the learned counsel submits that a sum of Rupees 2.05
lakhs is due with further interest and cost and that, by virtue of the very
nature of the loan, the Bank is not in a position to regularize the ‘IPS loan’.
The learned counsel for the petitioner submits that the petitioner might be
given some breathing time to clear the due amount in a phased manner.
3. In the above facts and circumstances, the petitioner is
WP(C) No.4284/2010
2
permitted to clear the ‘overdue’ amount under the housing loan by way of
`three’ equal monthly instalments, the first of which shall be effected on or
before the 30th of this month, to be followed by similar instalments to be
effected on or before the 30th of the succeeding months.
3. With regard to the second loan, i.e., under the IPS, the
petitioner is permitted to clear the entire outstanding liability by way of ‘five’
equal monthly instalments, the first of which shall be effected on or before
the 30th of this month and the remaining to be effected on or before the 30th
of the succeeding months. Subject to satisfaction of the requirement as
above, all recovery proceedings stated as being pursued against the
petitioner shall be kept in abeyance for the time being. It is made clear that,
if any default is committed by the petitioner in satisfying the instalments as
above, or if any two consecutive defaults are made with regard to the
repayment of regular EMIs in respect of the housing loan, the respondent
Bank will be at liberty to proceed with further steps for realisation of the
entire amount in a lump sum.
The Writ Petition is disposed of accordingly.
P. R. RAMACHANDRA MENON
JUDGE
dnc