The court establishes the procedure for regularizing overdue loan accounts under specified payment terms.

JUDGMENT

Dated this the 20th day of November, 2024 The present Writ Petition has been filed seeking the following prayers:

i. Issue a writ of mandamus directing the Respondent to regularize the loan account by permitting the Petitioner to pay the overdue amount in installments.

ii. Pass such other orders which are incidental and proper in the interest of justice.

iii. Dispense with the filing of translation of the vernacular documents.

2. The petitioner’s son and daughter had availed a housing loan of Rs.35,00,000/- and a top up loan of Rs.7,00,000/- from the respondent bank in the year 2021, by mortgaging the property having an extent of 05.6 Ares of land and a residential building in Re.Sy.No.691/17/31/12, Bloak No.17 of Thamarakulam Village, Mavelikkara Taluk, Alappuzha District. The petitioner stood as a guarantor for the aforesaid loans. The borrowers have defaulted in making repayment of the loans taken from the respondent bank. Therefore, the bank, after classifying the petitioner’s loan accounts as NPA, has proceeded under the provisions of the SARFAESI Act and Rules made thereunder.

3. The learned counsel for the bank submits that if the petitioner makes payment of substantial amount upfront and the remaining overdue amount in few instalments, along with the regular instalments, the bank shall regularize the loan accounts of the petitioner. As of today, the total overdue amount is Rs.3,10,000/- in respect of the two loans.

4. Considering the said stand of the learned counsel for the bank, the present writ petition is disposed of in the following terms:

i. The petitioner shall pay an upfront amount of Rs.1,00,000/- along with one regular instalment in respect of both loans, on or before 07.12.2024 and the remaining overdue amount in 5 equal monthly instalments, along with the regular instalments. The 1st instalment is to be paid on or before 07.01.2025, and the remaining 4 instalments on or before the 7th day of each succeeding month.

ii. Once the petitioner pays the entire overdue amount, the bank shall regularize the loan accounts of the petitioner.

iii. In case of failure to make payment of Rs.1,00,000/- or any subsequent instalments as directed above, the bank shall be free to proceed further against the petitioner for realizing the outstanding loan amount.

With the aforesaid directions, the present writ petition stands finally disposed of.