IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 29TH SEPTEMBER 2010 / 7TH ASWINA 1932 WP(C).No. 27743 of 2010(P) -------------------------- ( CMP.3611/2009 of C.J.M.,TRIVANDRUM ) .................... PETITIONER: ----------------- R.KRISHNAN NAIR, S/O.RAMAKRISHNA PILLAI, "KUMARA SADANAM", TC 7/1668, MUDAVARA, SHASTHAMANGALAM, THIRUVANANTHAPURAM. BY ADVS. SRI.SUMAN CHAKRAVARTHY SRI.A.S.ANILKUMAR RESPONDENTS: ----------------------- 1. THE AUTHORIZED OFFICER, (THE CHIEF MANAGER) UNION BANK OF INDIA, UNION BANK OF INDIA , REGIONAL OFFICE, THIRUVANANTHAPURAM. 2. THE UNION BANK OF INDIA, REPRESENTED BY ITS CHIEF MANAGER, UNION BANK BUILDING, M.G.ROAD, STATUE, THIRUVANANTHAPURAM. RESPONDENTS 1 AND 2 CORRECTED AS: ----------------------------------------------------------- 1. THE AUTHORIZED OFFICER (THE CHIEF MANAGER), 'ORIENTAL BANK OF COMMERCE', REGIONAL OFFICE, THIRUVANANTHAPURAM 2. THE 'ORIENTAL BANK OF COMMERCE, REPRESENTED BY ITS CHIEF MANAGER, M.G.ROAD, STATUE, THIRUVANANTHAPURAM; AS PER ORDER DT. 7.9.10 IN IA. 12337/10. R1 & R2 BY ADVS. SRI. P.BALAKRISHNAN SRI. N.SASI, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK C.K. ABDUL REHIM, J ------------------------------ WP(C) NO. 27743 OF 2010 -------------------------------------- Dated this the 29th day of September, 2010 JUDGMENT Challenge in this Writ Petition is against proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed by the petitioner in repayment of the loan availed from the respondent Bank, invoking Section 14 (1) of the Act, the respondents have approached Chief Judicial Magistrate Court and Ext.P7 order was issued appointing an Advocate Commissioner to take over possession of the property. The petitioner had produced Exts.P2 to P6 receipts evidencing payments of substantial amounts made even during pendency of the proceedings before the Chief Judicial Magistrate's Court. The limited prayer of the petitioner in this Writ Petition is to permit regularisation of the loan account by paying the defaulted instalments. 2. Learned counsel appearing for the respondent 2 WP(C) No. 27743/2010 Bank submitted that the loan was availed as early as in 2005 and there was chronic default in payment of regular monthly instalments. It was further stated that the proceedings under the SARFAESI Act itself was initiated during the year 2003 and the matter was being delayed on the basis of promises made by the petitioner to clear the liability. 3. The statute provides effective remedies against proceedings under the SARFAESI Act. The petitioner has not chosen to make any challenge against the proceedings at the stages under Section 13 (2) or 13 (4) of the proceedings. Therefore I am not at all inclined to entertain this Writ Petition on the basis of any challenge against Ext.P7 order. However, considering the request made by the counsel appearing for the petitioner, I am inclined to permit the petitioner to pay off the entire liability within a reasonable time in instalments. This is especially because of the fact that the petitioner had effected considerable payments even during pendency of the proceedings before the Chief Judicial 3 WP(C) No. 27743/2010 Magistrate's Court, and also considering the submission that the petitioner is relinquishing all challenges and rights to invoke statutory remedies against the proceedings impugned. 4. Under the above circumstances, the Writ Petition is disposed of directing the respondents to keep all further proceedings pursuant to Ext.P7 order in abeyance, provided the petitioner remits the entire balance outstanding in the loan account, including interest accruing in future, in 5 (five) equal monthly instalments falling due on or before 15.11.2010 and on or before the 15th day of the succeeding months. 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 pursuant to Ext.P7 order. It is also made clear that the relief granted above is subject to the condition that the petitioner is precluded from raising any subsequent challenge against the proceedings. C.K. ABDUL REHIM JUDGE dnc