IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 16304 of 2010(K)
1. K.K.PRAVEEN, S/O. KARUNAKARAN,
... Petitioner
2. LATHA PRAVEEN, W/O.K.K. PRAVEEN,
Vs
1. THE AXIZ BANK LTD.,
... Respondent
2. THE ASSISTANT VICE PRESIDENT
For Petitioner :SRI.C.J.JOY
For Respondent :SRI.G.BALAMURALEEDHARAN (PARAVUR)
The Hon'ble MR. Justice P.R.RAMACHANDRA MENON
Dated :30/06/2010
O R D E R
P.R.RAMACHANDRA MENON, J
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W.P(C) No.16304 of 2010-K
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Dated this the 30th day of June, 2010.
J U D G M E N T
The petitioners availed housing loan of Rs.45 lakhs from the
first respondent Bank in the year 2006, creating security interest
over the property in question. But the petitioners could not honour
the commitment in repaying the due amount. In the said
circumstances, there was no other alternative for the Bank, but to
declare the account as ‘NPA’ and proceed with further steps invoking
the provisions under the SARFAESI Act; which in turn is subjected to
challenge in this Writ Petition.
2. When the matter came up for consideration before this
Court on 27.5.2010, coercive steps were intercepted, on condition
that the petitioners deposited a sum of Rs.1 lakh within two weeks.
It is stated as complied with.
3. The learned counsel for the petitioners submits that the
default was never wilful but because of some unforeseen
circumstances and that earnest efforts are being made by the
petitioners to clear the overdue amount at the earliest.
W.P(C) No.16304 of 2010-K 2
4. The learned counsel for the Bank submits on the
instructions that, the action pursued by the Bank being strictly in
conformity with the statutory requirements, is not assailable under
any circumstances. The learned counsel further submits that the
total ‘overdue’ amount will come to Rs.5.92 lakhs and after
deducting the amount of Rs.1 lakhs already satisfied by the
petitioner pursuant to the interim order, an amount of Rs.4.92 lakhs
plus further interest is liable to be cleared by the petitioner in
respect of the defaulted instalments. Unless and until the said
amount is paid, the question of regularisation is not liable to be
entertained; submits the learned counsel.
5. Considering the facts and circumstances, the petitioner
is permitted to clear the ‘overdue’ amount by way of ‘four’ equal
monthly instalments; the first of which shall be effected on or
before the 30th of July, 2010; to be followed by similar instalments
to be effected on or before the 30th of the succeeding months; on
which event, the loan account shall stand regularised. This is in
addition to the liability of the petitioner to clear the regular EMIs.
Subject to the above, all further coercive proceedings pursuant to
W.P(C) No.16304 of 2010-K 3
Ext.P4 shall be kept in abeyance. It is also made clear that, if any
default is committed by the petitioner in satisfying the ‘overdue’
amount as above, or if any two consecutive defaults are made
regarding payment of the regular EMIs, it will open to the Bank, to
proceed with appropriate steps for realisation of the entire amount
in a lump sum.
The Writ Petition is disposed of.
P.R.RAMACHANDRA MENON
JUDGE
ab