IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 9TH DECEMBER 2010 / 18TH AGRAHAYANA 1932 WP(C).No. 32041 of 2010(E) -------------------------------------- PETITIONERS: --------------------- 1. THOMAS GEORGE, MOIDYIL HOUSE, KUMBANAD P.O., KUMBANAD- 689 547. 2. SMT.JESSY THOMAS, W/O.THOMAS GEORGE OF DO. BY ADV. SRI.R.SANTHOSH BABU. RESPONDENTS: ------------------------ 1. THE SOUTH INDIAN BANK LTD., REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR REGISTERED OFFICE, SIB HOUSE, T.B.ROAD, P.B.NO.28, THRISSUR - 680 001. 2. THE CHIEF MANAGER/AUTHORISED OFFICER, SOUTH INDIAN BANK, REGIONAL OFFICE, PATHANAMTHITTA – 689 645. 3. THE BRANCH MANAGER, SOUTH INDIAN BANK, BRANCH THIRUVALLA, P.B.NO.27, NEAR SCS JUNCTION, THIRUVALLA- 689 101. R1 TO R3 BY ADV. SRI.GEORGE VARGHESE,S.C,SOUTH INDIAN BANK. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/12/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C.K.ABDUL REHIM, J. ------------------------------- W.P.(C)No.32041 of 2010 ------------------------------- Dated this the 22nd day of March, 2011. J U D G M E N T The matter arises under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed in repayment of a housing loan availed by the petitioners, the immovable property which is the secured asset, was proceeded against. According to petitioners, the loan in question was availed in the year 2005 and the repayment period is for 15 years. It is contended that, the coercive steps are now being pursued, without acceding to request made by the petitioners to permit regularisation of the account, on the basis of an offer to make payment of the amounts overdue, within a short period. 2. Standing counsel appearing for the respondent bank submitted that, the loan account is in chronic 2 W.P.(C)No.32041 of 2010 default and even the amount overdue for payment is more than Rs.8 lakhs. 3. Pursuant to an interim order issued by this Court in I.A.No.1911 of 2011, the petitioners had effected payment of a sum of Rs.2,50,000/-. Even though various contentions were raised, the petitioners seek indulgence of this Court in permitting regularisation of account by offering payment of the balance outstanding within a short period. The above relief is sought for on the basis of an undertaking that, the petitioners are relinquishing all challenges against the proceedings and that they are not intending pursue any of the statutory remedies. 4. Eventhough interference on merits is not warranted, I am of the view that, the writ petition can be disposed of by permitting payment of the defaulted amounts within a short period and on that basis permitting regularisation of the account. 5. Therefore, the writ petition is disposed of directing 3 W.P.(C)No.32041 of 2010 the respondents to keep in abeyance all further steps for dispossession and sale of the property subject to condition of the petitioners remitting the amount overdue for payment (defaulted instalments along with interest and expenses if any due) in 4 equal monthly instalments, falling due on or before 15.4.2011 and on or before 15th day of the succeeding months, along with payment of regular instalments due for the respective months. The respondents are directed to furnish a statement of account in order to facilitate such payment. 6. If payment of the amounts in default is cleared as directed above, the respondents shall permit the petitioners 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 as stipulated above or any future monthly instalments, the respondents will be free to proceed with further steps, on the basis of the notice 4 W.P.(C)No.32041 of 2010 already issued and on such event the petitioners will be precluded from raising any subsequent challenge. C.K.ABDUL REHIM, Judge ami/