IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 18TH FEBRUARY 2011 / 29TH MAGHA 1932 WP(C).No. 860 of 2011(F) ------------------------ PETITIONER(S): --------------- JOHN MATHEW, S/O. MATHEW, AGED 47 YEARS, KYNATTUMPILLY HOUSE, NO.28/2983, ELENJERI ROAD, KADAVANTHRA, COCHIN - 682 020. BY ADV. SRI.M.M.SAIDU MUHAMMED SRI.BINU VARGHESE (ERNAKULAM) RESPONDENT(S): --------------- 1. UNION BANK OF INDIA, UNION BANK BHAVAN, M.G. ROAD, ERNAKULAM, REPRESENTED BY ITS CHIEF MANAGER, PIN - 682 011. 2. THE CHIEF MANAGER AND AUTHORISED OFFICER, UNION BANK OF INDIA, UNION BANK BHAVAN, M.G. ROAD, PIN - 682 011. BY SRI.A.S.P.KURUP - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.860 of 2011-F ---------------------------------------- Dated this the 18th day of February, 2011. J U D G M E N T Coercive steps initiated under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is under challenge in this writ petition. Consequent to default committed in repayment of a loan availed by the petitioner from the respondent Bank, the immovable property, which is the secured asset was proceeded against. Ext.P3 is the notice issued intimating steps taken under Section 13(4). 2. According to the petitioner the repayment period of the loan will expire only in the year 2024 and the coercive steps were now pursued without permitting regularisation of the account, eventhough the petitioner had offered for payment of the amounts in default within a short period. 3. Learned standing counsel appearing for the respondents, on the basis of instructions, submitted that the W.P(C) No.860 of 2011-F 2 loan in question was availed in the year 2006, to the tune of Rs.13.40 lakhs with a repayment period of 17 years. It is further submitted that the overdue (defaulted) amount itself will come to about Rs.1.53 lakhs, after crediting all payments made. 4. Considering availability of effective alternative remedy, this Court may not be justified in interdicting with the proceedings. However, learned counsel for the petitioner made an undertaking that the petitioner is not intending to pursue any statutory remedy available and that he is relinquishing all challenges raised against the proceedings. On the other hand, a limited prayer is made to permit regularisation of the account, on the basis of an offer that the overdue amounts will be paid within a short period, in instalments. 5. Considering the limited prayer, I am of the view that, indulgence can be shown in permitting regularisation by payment of the amounts in default in a phased manner, within a short period. W.P(C) No.860 of 2011-F 3 6. In the result, the respondents are directed to keep in abeyance all further coercive steps initiated pursuant to Ext.P3 notice, subject to condition of the petitioner remitting the overdue amounts (defaulted monthly instalments along with interest and expenses if any due) 4 (four) equal monthly instalments falling due on or before 15.3.2011 and on or before the 15th day of succeeding months along with payment of regular monthly instalments due for the respective months. 7. If payment of the defaulted amounts is regularised as directed above, the respondents shall permit the petitioner to continue payment of future monthly instalments in accordance with the original schedule of repayment. 8. It is made clear that on the event of default in payment of any one of the instalments as stipulated above or any future monthly instalments, the respondents will be free to proceed with further steps. It is made clear that the above relief is granted subject to condition that the W.P(C) No.860 of 2011-F 4 petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab