IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 23RD SEPTEMBER 2010 / 1ST ASWINA 1932 WP(C).No. 28825 of 2010(C) ---------------------------------------- PETITIONER(S): ----------------------- GOPINATHAN, S/O. GOVINDAN, PANAYADAN HOUSE, KARUVACHERY, PAYYANNUR, KANNUR (DIST.) BY ADV. SRI.P.BABU RESPONDENT(S): -------------------------- 1. CHIEF MANAGER AND AUTHORISED OFFICER, UNION BANK OF INDIA, REGIONAL OFFICE, CHAKKORATHKULAM, KOZHIKODE (DIST.) 2. THE BRANCH MANAGER, UNION BANK OF INDIA, KANNUR BRANCH, KANNUR. R1 & R2 BY ADV. MR.A.S.P. KURUP, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/09/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.28825 of 2010 ------------------------------------------- Dated this the 23rd day of September, 2010 J U D G M E N T ---------------------- The petitioner had committed default in repayment of monthly instalments due under a housing loan availed from the 2nd respondent Bank, to the tune of Rs.6 lakhs, in the year 2005. As per terms of the loan agreement, the amount has to be repaid in 120 equal monthly instalments. Consequent to default committed the respondents have initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and the immovable property, which is the secured asset, was sought to be taken over possession. 2. According to the petitioner, he was working in the service of the State Government and retired recently. The petitioner expressed willingness to repay the amount out of the retirement benefits due and approached the respondents seeking instalment facility. But since coercive steps were proceeded against without considering such request, this writ petition is filed. W.P.(C).28825/10-C -2- 2. The statute provides effective remedy against steps initiated under the SARFAESI Act. The petitioner has not chosen to avail such remedies either by raising objections against the demand or by approaching the appellate authority as provided under Section 17(1). Hence interference by this court on merits of the contentions is not at all warranted. 3. However, pointing out the facts that the repayment period of the loan is for 10 years, which will expire only in the year 2015, learned counsel for the petitioner sought indulgence of this court in permitting the petitioner to regularise the account by payment of the defaulted amount within a short period. Learned Standing Counsel for the respondents submitted that the defaulted amount itself will come more than Rs.1.10 lakhs and that the petitioner had committed consecutive defaults in payment of the equal monthly instalments. 4. Having considered totality of the circumstances prevalent in this case, I am of the opinion that, eventhough interference on merits is not possible, the petitioner can be permitted to regularise the account by paying the defaulted instalments along with interest and expenses if any due, within a short time. 5. Accordingly the writ petition is disposed of directing W.P.(C).28825/10-C -3- the respondents to keep in abeyance all further steps pursuant to Exts.P1 & P2 notices, provided the petitioner remits the entire defaulted amount in 3 (three) equal monthly instalments, falling due on or before 15.10.2010 and on or before the 15th day of two succeeding months. The petitioner shall also remit the regular instalments due for the respective months, along with the above said payments. 6. If the payments of the amounts defaulted in the loan account 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. 7. It is made clear that on the event of default in payment of any one of the instalments, the respondents will be free to proceed with further steps and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE. okb