IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 2ND NOVEMBER 2009 / 11TH KARTHIKA 1931 WP(C).No. 30955 of 2009(L) -------------------------- PETITIONER(S): --------------- DR.VALSAMMA BALAN, 'SREEVALSAM', THIRUVARPU PO, KOTTAYAM. BY ADV. SRI.SHAJI THOMAS PORKKATTIL SRI.BINU PAUL SRI.T.V.VINU RESPONDENT(S): --------------- 1. CHIEF MANAGER/AUTHORIZED OFFICER, UNION BANK OF INDIA, NRI BRANCH, P.B.NO.118, IST FLOOR TERADUPUZHA BUILDING, R.S.ROAD, PALAKKAD 678 001. 2. BRANCH MANAGER, UNION BANK OF INDIA, NRI BRANCH, CHANDRANAGAR BRANCH, PALAKKAD. ADV.SRI.A.S.P.KURUP, S.C. FOR UBI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.30955 OF 2009 ------------------------------ Dated this the 2nd day of November, 2009 J U D G M E N T ---------------------- 1. Challenge in this writ petition is against proceedings initiated by the respondents under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed in repayment of a housing loan availed by the petitioner from the 2nd respondent Bank, proceedings against the secured assets have been initiated. The respondents have issued Ext.P1 notice under Section 13(4) of the Act taking over possession of the property. According to the petitioner the repayment period is 15 years from 2005. It is submitted that the default in repayment on a regular basis happened only due to some unforeseen financial stringencies. The petitioner expressed her willingness to pay off the arrears within a short time to regularise the loan account. According to the petitioner eventhough the Bank was approached with such a proposal, the same was not acceded to. Hence the writ petition is filed. 2. Heard standing counsel appearing for respondent W.P.(C).30955/09-L 2 Bank, who on the basis of instructions submitted that, the loan in question was availed in 2005 and there was failure on the part of the petitioner in proper utilisation of the loan amount for constructing the residential house as per the proposed plan. It is submitted that the total amount outstanding in the loan account will be about Rs.8 lakhs. It is further submitted that the defaulted installments along with interest and expenses itself will be Rs.2,51,000/- as on date. The Bank is not favouring any extension of time to the petitioner to regularise the account. 3. Having considered submission on both sides and facts and circumstances of the case, I am of the opinion that the petitioner can be given a chance to regularise the account within a short period by paying the defaulted installments. 4. Hence the writ petition is disposed of directing the petitioner to make payment of the amounts pertaining to the defaulted installments, along with overdue interest and expenses if any liable, in 4 (four) equal monthly installments starting from 15.12.2009 and on or before any of the 15th day of the three succeeding months. The petitioner shall also continue payment of the regular installments due from the month of December 2009 onwards along with the above said payments. 5. In case the account is regularised through payments as directed above, the respondent Bank shall permit the W.P.(C).30955/09-L 3 petitioner to continue repayment as per the original schedule. 6. It is made clear that on the event of default in payment of any of the installments as stipulated above, the respondents will be at liberty to proceed with further steps pursuant to the notices already issued and on such event the petitioner will be precluded from raising any further challenge against proceedings either before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb