N.Chandran vs Kattakkada Primary Co-Operative Agricultural And Rural Development Bank Ltd Kattakkada, Thiruvananthapuram-695 543, Represented By Its Secretary

Gopinath P, J

The petitioner availed a housing loan from the respondent Bank. On default being committed, proceedings have been initiated under the provisions of the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 (hereinafter referred to as 'the CARD Act) and the property of the petitioner has been brought to sale on 17.3.2023.

The learned counsel appearing for the petitioner would submit that the petitioner may be permitted to regularise the loan account by paying overdue amount in instalments.

It is submitted on behalf of the respondent bank that the petitioner committed default in repayment and the overdue amount is Rs.2,13,581/- as on 3.3.2023. It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the overdue amount in limited instalments and regularise the loan account.

I have heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondent Bank.

Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to clear off the overdue amount in ten (10) equal monthly instalments first of which shall be paid on or before 10-04-2023 and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.

Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.2,13,581/- along with bank charges from the petitioner and regularise the loan account of the petitioner on the following conditions:

(i) The overdue amount of Rs.2,13,581/- together with any accrued interest and charges shall be repaid in ten (10) equated monthly instalments.

(ii) The first instalment shall be paid on or before 10-04-2023 and the subsequent instalments shall be paid on the last working day of every succeeding month.

(iii) Petitioner shall continue to pay the regular EMI’s along with the instalments as directed above.

(iv) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.

(v) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.