Parti Sosialis Malaysia (PSM) is urging a government-linked bank to resolve the housing dispute of the family of P Balan, who passed away on May 27 this year.

PSM central committee member S Arutchelvan said the bank auctioned off Balan's house in 2016, despite being aware that Balan had an accident and had been in a coma for nine months at that time.

"Balan paid his housing loan promptly until he had an industrial accident in June 2015 and became paralysed below his waist.

"While he was in a coma and bedridden in the hospital for nine months, and with full knowledge of his situation, (the bank) auctioned off his only house, in spite of an insurance claim under the MRTA (Mortgage Reducing Term Assurance) pending," Arutchelvan said in a statement today.

The new owner of the house, who had won the bid for the house in an auction for RM150,000, is now, through the court, trying to evict Balan's family, he said.

"While the new owner and Balan both claim to be victims, it is PSM's opinion that Balan is the most aggrieved party and based on justice, it is his family which needs to be protected.

"Failing to save Balan's home will put two of his sisters, both widows, in greater distress and their four children homeless.

"Balan was previously the sole breadwinner of this family," he said.

Lawyer S Kartigesan, who is representing Balan's family pro bono in this case, had called this "corporate bullying", Arutchelvan (photo) said.

As such, he said, the bank should take this on as a social responsibility and pay off the new owner, as well as arrange the MRTA insurance for Balan and his family.

"(The bank) will not go bankrupt if it resolves this issue. The problem was created by it and it is only right that the bank resolves it.

"The Pakatan Harapan government, which is committed to justice, should ensure that government-linked companies do not behave solely for the interest of profit," Arutchelvan said.

The High Court in Seremban today gave the parties in the case three months to see if any settlement can be reached, he said.

The next hearing on the matter has been fixed for Sept 24.