IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 22ND SEPTEMBER 2010 / 31ST BHADRA 1932 WP(C).No. 25208 of 2010(A) -------------------------- (CMP.6254/2010 of C.J.M.,KOLLAM) .................... PETITIONER: ------------------ D.SATHESH KUMAR, AGED 45 YEARS, S/O. DANIEL, NEETHA NIVAS, (CHANDRA NIVAS), MUNDAKKAL (EAST) 38, KOLLAM. BY ADV. SRI.THYPARAMBIL THOMAS THOMAS RESPONDENT: ------------------- AUTHORISED OFFICER/GENERAL MANAGER, KOLLAM CO-OPERATIVE URBAN BANK LTD., NO.960, KOLLAM 691001. BY ADVS. SRI.N.DHARMADAN, SENIOR ADVOCATE SMT.D.P.RENU THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 25208 of 2010(A) ------------------------------------ APPENDIX ----------------- PETITIONER'S EXHIBITS --------------------------------------- EXT.P1. COPY OF DESCRIPTION REGARDING NAME OF THE LOAN, THE TERM OF LOAN MODE OF PAYMENT AND MONTHLY INSTALLMENTS. EXT.P2. COPY OF AFFIDAVIT AND PETITION IN CMP. NO.6254/2-010. EXT.P3. COPY OF THE NOTICE DTD. 2.7.1.10 RECEIVED BY THE PETITIONER FROM ADVOCATE COMMISSI0ONER IN CMP 6254/2010. EXT.P4. COPY OF THE BANK RECEIPT DT. 23.11.07. RESPONDENT'S EXHIBITS : NIL ---------------------------------------- P.A. TO JUDGE / TRUE COPY / VK C. K. ABDUL REHIM, J. =~=~=~=~=~=~=~=~=~=~=~=~=~=~=~=~= W.P.(C) No. 25208 of 2010 =~=~=~=~=~=~=~=~=~=~=~=~=~=~=~=~= Dated this the 22nd day of September, 2010 JUDGMENT Proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is under challenge in this writ petition. 2. Consequent to default committed in repayment of loan availed by the petitioner from the respondent, immovable properties, which is the secured asset with respect to the loan transaction, was proceeded against. Invoking section 14(1) of the Act, the respondent had approached the Chief Judicial Magistrate Court, Kollam and an Advocate Commissioner was appointed to take over possession of the property. 3. The petitioner has not chosen to avail the statutory remedy under section 17(1) of the Act by approaching the authority concerned. No serious dispute was seen raised with respect to the demand also. Therefore, I am not WPC 25208/2010 2 inclined to entertain this writ petition on merits of the contentions raised against the proceedings. 4. However, learned counsel for the petitioner pointed out that the housing loan in question was availed in the year 2002 with a repayment periodof 11 years. It is submitted that the petitioner is relinquishing all challenges against the proceedings and he is not intending to pursue any of the statutory remedies, provided he is permitted to regularize the account by paying the defaulted amounts, along with interest and expenses if any due, within a short period. 5. The prayer is opposed by learned counsel appearing for the respondent Bank, contending that there is consecutive defaults in payment of instalments and that an amount around Rs.4 lakhs is due with respect to the arrears in default. 6. Even though interference on merits is not at all warranted, I am inclined to show indulgence in permitting the petitioner to regularize the account by paying the WPC 25208/2010 3 defaulted amount within a short period. 7. Accordingly, the writ petition is disposed of directing the respondents to keep all further coercive steps pursuant to orders issued by the Chief Judicial Magistrate Court, Kollam in abeyance, provided the petitioner remits the defaulted amounts (instalments due till date along with interest and expenses if any due) in 4 (four) equal monthly instalments, falling due on or before 30-10-2010 and on or before the last day of the succeeding months. 8. The petitioner shall also make payment of the regular instalments falling due, along with the above said instalments. 9. If the payment in the loan account is regularized as directed above, the respondents shall permit the petitioner to continue payment on future instalments in accordance with the original schedule. 10. It is made clear that on the event of default in payment of any of the instalments, the respondents will be at liberty to proceed with further steps pursuant to the WPC 25208/2010 4 order already issued by the Chief Judicial Magistrate Court, Kollam. The relief granted above is subject to the condition that the petitioner is precluded from raising any subsequent challenge against the proceedings. The writ petition is disposed of as above. C. K. ABDUL REHIM, JUDGE. mn.