Desperate for help and on the verge of becoming homeless, handicapped labourer P Balan has turned to the Malaysian Human Rights Commission (Suhakam) to resolve his predicament.

The bank had auctioned off his home in February in a purportedly speedy manner, after a freak accident left the welder paralysed waist-down and unable to repay his housing loans.

A metal column had crushed Balan, 37, while he was at work on June 22 last year, damaging his spinal cord and making it impossible for him to continue his job.

Now, he and his two sisters, as well as his sister's three children, may be thrown out of the house that they are now occupying illegally.

They have already received a legal notice from the new homeowner, telliing them to vacate the premises.

Suhakam commissioner Francis Johen Adam pledged to seek information from the bank and Balan's insurance company, to find out if his human rights had been violated.

"Knowing that he is disabled, with no employment... (we) hope that the parties, such as the bank will consider this," he told a press conference after meeting Balan at the commission's headquarters in Kuala Lumpur.

But Francis admitted that Suhakam would not be able to solve the problem, although they would “take note” of what had happened.

Another commissioner, Jerald Joseph, who was present at the meeting, urged the state or federal government to step in and provide public housing for Balan.

Four months in a coma

Balan bought the house with a loan of RM115,000 in 2005.

He was unable to service the loan from July 2015 onwards after the accident. He spent seven months in hospital, and for four of those, he was in a coma.

Even though the loan was covered by insurance, it was rejected by insurers due to insufficient medical evidence, and the bank proceeded to auction the property.

The family complained that the bank was unwilling to wait for a complete medical report confirming Balan’s paralysed state, which he only received in June after being discharged in January.

They later learnt that their home was auctioned off at a price of RM150,000.

"I want to tell the bank I want only my house, the double-storey house I have stayed since 2005," said Balan today.

Even if he were to receive his insurance money, Balan may not be able to buy a new home – no bank would approve another housing loan for him.

Also present with him today were PSM secretary-general A Sivarajan, Seremban PSM secretary S Tinagaran and Independent Living & Training Centre Malaysia president G Francis Siva.

The house should not have been auctioned off as the insurance on the housing loan kicks in after the debtor becomes handicapped or dies, said Tinagaran.

There have been at least 50 cases similar to Balan's in the past three years, where mostly 10-year-old houses were auctioned at a lower price after the original owner defaulted payment for a months, according to Sivarajan.

He suspected the bank officials, auctioneer and house buyers were working together to buy houses at a lower price, in order to later sell it at market price.