IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 5TH OCTOBER 2010 / 13TH ASWINA 1932 WP(C).No. 26355 of 2010(T) -------------------------- PETITIONER(S): --------------- 1. SURESH BABU K.C.,S/O. CHANDU, MOOZHIPURATH POYIL,NANMANDA P.O. KUNNATH STREET,KOZHIKODE DISTRICT. 2. REENA T.M. W/O.SURESH BABU K.C., MOOZHIPURATH POYIL,NANMANDA P.O., KUNNATH STEET, KOZHIKODE DISTRICT. BY ADV. SRI.SUNNY MATHEW RESPONDENT(S): --------------- 1. THE DEWAN HOUSING FINANCE CORPORATION LTD., CORPORATE OFFICE, DHEERAJ ARMA, 6TH FLOOR, ANANT KANEKAR MARG, BANDRA (E) MUMBAI - 400001. 2. THE DEWAN HOUSING FINANCE CORPORATION LTD., MAVOOR ROAD BANCH, REPRESENTED BY ITS MANAGER-673661. 3. THE AUTHORISED OFFICER, DEWAN HOUSING FINANCE CORPORATION LTD., MAVOOR ROAD, KOZHIKODE - 673661. ADV. SRI.P.PAULOCHAN ANTONY FOR R1-3 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------- W.P(C) No.26355 of 2010-T ---------------------------- Dated this the 5th day of October, 2010. J U D G M E N T Consequent to default committed in repayment of a housing loan availed by the petitioners from the respondent Bank, proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated and the immovable property, which is the secured asset was sought to be taken over possession on issuing Ext.P2 notice under Section 13(4) of the Act. 2. According to the petitioners, the coercive steps were initiated without considering request for granting a breathing time to make payment of the defaulted amounts. The limited prayer raised in this writ petition is for permitting regularisation of the account by payment of the arrears in default. 3. Eventhough interference on merits with respect to the proceedings initiated under the SARFAESI Act was not at all warranted, as a gesture of indulgence this Court directed the petitioners to remit a sum of Rs.50,000/-, as per the interim order dated 19.8.2010. It is conceded by both sides that the payment has already been effected. Learned counsel for the respondent Bank W.P(C) No.26355 of 2010-T 2 submitted that by effecting such payments, the default in the loan account now stands regularised. Under such circumstances, the petitioners are seeking indulgence for a direction to permit the petitioners to continue payment of future instalments in accordance with the original schedule of the loan agreement. I am of the opinion that some indulgence can be shown subject to the condition of permitting the respondents to proceed with further steps in case of default. 4. In the result, the writ petition is disposed of directing the respondents to keep in abeyance further coercive steps of recovery pursuant to Ext.P2 notice, provided the petitioners remit all the future monthly instalments in the loan account without any default on the respective due dates. 5. It is made clear that on the event of default in payment of any of the instalments the respondents will be free to proceed with further steps. It is further made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against such proceedings, either before this Court or before any other forum. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// ab