Allowed

Titus Y and Another v. Andhra Bank,Kollam and Another

Kerala HC29 Jul 2010WP(C)/16519/2010

Case brief

AI extract

What is this about?

The Court allowed the petitioner to regularize a defaulted housing loan by clearing the overdue amount in three equal monthly installments. If the petitioner defaults on these payments or misses two consecutive regular EMIs, the bank may proceed with further recovery steps.

What did the court decide?

Petitioner permitted to clear overdue amount in three equal monthly installments to regularize the loan account.

Titus Y and Another Vs Andhra Bank,Kollam… — Contract and Commercial Disputes | Kerala HC (2010)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT :

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THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON

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THURSDAY, THE 29TH JULY 2010 / 7TH SRAVANA 1932

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WP(C).No. 16519 of 2010(L) --------------------------------------

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PETITIONERS:

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---------------------

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1. TITUS.Y, S/O.Y.YOHANNAN, OLIKKARA MELATHIL, CHERUMOODU, VELLIMON, KOLLAM.

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2. LAILA, W/O.TITUS.Y., OLIKKARA MELATHIL, CHERUMOODU, VELLIMON, KOLLAM.

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BY ADVS. SRI.ALEX N.MATHEW (KOLLAM), SRI.H.RAMANAN, SRI.JAMES JOSE.

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RESPONDENTS:

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------------------------

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1. ANDHRA BANK, BEACH ROAD, KOLLAM, REP.BY ITS CHIEF MANAGER.

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2. AUTHORISED OFFICER, ANDHRA BANK, BEACH ROAD, KOLLAM.

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BY ADV. SRI. ABRAHAM MATHEW (VETTOOR).

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/07/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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prv.

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P. R. RAMACHANDRA MENON, J.

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=================

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W.P.(C) No. 16519 of 2010

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================= Dated this the 29^th day of July, 2010

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JUDGMENT

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Petitioner availed a housing loan of Rs.2.5 lakhs from the first respondent bank on 11-8-2005, creating security interest over the property in question. In spite of the assurance given, the petitioner could not satisfy the regular monthly instalments on time, under such circumstance, the first respondent bank proceeded with steps under the SARFAEST Act, which is under challenge in this writ petition.

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The learned standing counsel for first respondent bank, on instructions, submits that the total outstanding arrears as on 14-7-2010 is Rs.3,09,335.50 and that the 'overdue' amount in respect of the defaulted instalments is Rs.82,390/-. Unless the petitioner satisfies the 'overdue' amount, the request for regularisation of the loan account is not liable to be entertained, submits the learned counsel.

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W.P.(C) No. 16519/2010 2

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The learned counsel for the petitioner submits that the default was never wilful, but because of some unforeseen circumstances and that the entire over due amount will be cleared and prays that the loan amount may be regularized.

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Considering the rival submissions and particularly the fact that the loan is in the 'housing sector', this Court finds it fit and proper to permit the petitioner to clear the 'over due' amount and to have the account regularised.

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Accordingly, the petitioner is permitted to clear the 'over due' amount by way of 'three' equal monthly instalments; first of which shall be effected on or before 20^th of August, 2010; to be followed by similar instalments to be effected on or before the 20^th of the succeeding months. Subject to this, the loan account will stand regularized. This will be in addition to the liability of the petitioner to clear the regular EMIs. It is also made clear that, if any default is committed by the petitioner to pay the 'overdue' amount as above or if any two consecutive defaults are made with regard to payment of the regular EMIs, the respondents will be free

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W.P.(C) No. 16519/2010

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to proceed with further steps for realization of the entire

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amount in a lump sum.

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Writ petition is disposed of as above.

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P. R. RAMACHANDRA MENON, JUDGE.

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mn.

Titus Y and Another v. Andhra Bank,Kollam and Another

Case brief

What is this about?

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Titus Y and Another v. Andhra Bank,Kollam and Another

Case brief

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