Judgment · High Court · 2012
Case at a glance
Outcome
Disposed of
The writ petition is disposed of
Judgment
P.R.RAMACHANDRA MENON, J---------------------------------------W.P. (C) NO. 14079 of 2012 (H)----------------------------------------Dated this the 25th day of June, 2012JUDGMENTThe issue is in respect of the default committed by thepetitioner under a 'housing loan' availed from the respondentBank. As a matter of fact, a sum of Rs.5 Lakhs (Rupees FiveLakhs only) was availed on 30.05.2008, creating security interestover the property. Since the default went beyond the permissibleextent, the account was declared as NPA and the Bank proceededwith steps under the SARFAESI Act, which in turn is underchallenge. 2.The learned counsel for the petitioner submits that thedefault was never wilful, but because of some compellingcircumstance and that the petitioner does not intend to disputethe liability to satisfy the due amount, nor is there any disputewith regard to the rights and liberties of the Bank in proceedingagainst the property. The only relief now pressed before thisCourt is to permit the petitioner to clear the 'overdue amount' W.P. (C) NO. 14079 of 2012 2and continue to avail the benefit under the loan transaction, asoriginally scheduled.3.The learned counsel for the respondent Bank submits, on instructions, that a total sum of Rs.75,975/- (Rupees Seventyfive thousand nine hundred and seventy five only) is 'overdue' inrespect of defaulted installments and unless the said amount iscleared, the petitioner is not entitled to press for regularization ofthe loan account. It is also stated that Bank has complied with allthe statutory requirements and that the same is not assailableunder any circumstances.4.After hearing both sides and also considering theparticular nature of the loan and the limited extent of the reliefsought for, this Court finds that the petitioner can be given anopportunity to clear the overdue amount, to have the loanaccount regularized. Accordingly, the petitioner is directed tosatisfy the entire 'overdue' amount in respect of the defaultedinstallments by way of 'two' monthly installments, the first ofwhich shall be effected on or before the 10th July 2012 and the W.P. (C) NO. 14079 of 2012 3next installment shall be effected on or before the 10th of August2012. This will be in addition to the liability of the petitioner toclear the regular EMIs as well. Subject to this, loan account willstand regularized and the coercive proceedings taken shall bekept in abeyance for the time being. It is also made clear that, ifany default is committed with regard to the satisfaction of the'overdue' as above, or if any two consecutive defaults are madewith regard to the regular EMIs, it will be open for the respondentBank to proceed with further steps for realization of the entireamount in lump, by pursuing such steps from the stage where itstands now. The writ petition is disposed of. Sd/- P.R.RAMACHANDRA MENON JUDGE./TRUE COPY/P.A.TO JUDGEAMV/- W.P. (C) NO. 14079 of 2012 4
Questions this judgment answers
What did the Court decide in this case?
The Court recorded the following disposition: The writ petition is disposed of
Which court decided this case, and when?
Kerala High Court, on 10 Jul 2012. The bench was P R RAMACHANDRA MENON.
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