C.K. Satheesh Nair vs Canara Bank and The Authorised Officer

P.R. Ramachandra Menon, J.—The petitioner had availed a housing loan of Rs. 2 lakhs from the respondent Bank in the year, 2002, creating security interest over the property in question. It is stated that, due to some unforeseen circumstances petitioner could not effect the installments as scheduled, which made the Bank to proceed against the petitioner under the SARFAESI Act, declaring the account as ''NPA''. The petitioner is challenging the steps taken by the Bank on many a ground.

The learned Counsel appearing for the petitioner submits that, the petitioner is constrained to approach this Court by filing this Writ petition because of the threat to take physical possession of the premises, adding that the petitioner would clear the entire ''overdue'' amount, provided some breathing time is given in this regard

The learned Counsel appearing for the Bank submits that, a total sum of Rs.1.66 lakhs is due in respect of the defaulted installments and unless and until the ''overdue'' amount is cleared the question of regularization is not liable to be entertained.

Considering the facts and circumstances, the petitioner is permitted to clear the ''overdue'' amount of Rs.1.66 lakhs, as mentioned above, by way of 2 equal monthly installments; the first of which shall be paid on or before the 30th of June, 2010; to be followed by the next and the last installment to be effected on or before the 30th of July, 2010; on which event, the loan account will stand regularized. This will be in addition to the liability of the petitioner to remit the regular EMIs as well. 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 overdue amount as above, or if any two consecutive defaults are made with regard to the regular EMIs, 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.