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Petitioners can be granted an opportunity to repay the overdue amount of loan in installments and the loan account to be regularized: High Court of Kerala

Petitioners can be granted an opportunity to repay the overdue amount in 6 installments and if the amount so directed is repaid within the time the respondent shall regularize the loan account and was held by High Court of Kerala through the learned bench led by HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS in the case of JAYAPRAKESH PURYATH THEKKETHIL vs. THE HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (WP(C) NO. 10774 OF 2022) on 29th March, 2022.

Brief facts of the case are that Petitioners as borrowers from the respondent bank, have committed default in repayment. Consequently, proceedings have been initiated by the bank for recovery of the amounts due. Learned counsel for petitioner confined the relief to an opportunity for repaying the overdue amount in installments and to obtain regularization of the loan account.

On behalf of the respondent bank it was submitted that the petitioners committed default in repayment and the overdue amount is Rs.18,92,095/-. 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 installments and regularize the loan account.

In view of the facts and circumstances apart from the submissions the Court held that the petitioners can be granted an opportunity to repay the overdue amount in 6 installments and if the amount so directed is repaid within the time then the loan account to be regularized. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.18,92,095/- along with bank charges from the petitioners and regularize the loan account of the petitioners on the conditions: The overdue amount of Rs.18,92,095/- shall be repaid in ‘6’ equated monthly installments, the first installment of Rs.3,00,000 shall be paid on or before 15.04.2022 and the remaining installments shall be paid on or before the 15th day of the succeeding months. In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.

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Judgment reviewed by – Amit Singh

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