IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 1ST JULY 2011 / 10TH ASHADHA 1933 WP(C).No. 17755 of 2011(T) -------------------------------------- [CMP.NO.4650/2010 OF CHIEF JUDICIAL MAGISTRATE COURT, TRIVANDRUM] .................... PETITIONER: ------------------- SANDHYA RANI.S.,W/O.VARGHESE, AGED 36 YEARS, VARGHESE BHAVAN, MANALAYAM, MALAMUKAL, KODUNGANUR P.O., THIRUVANANTHAPURAM, PIN- 695 013. BY ADV. SRI.SREEKANTH S.NAIR. RESPONDENT: ---------------------- UNION BANK OF INDIA, MAIN BRANCH, M.G.ROAD, STATUE, THIRUVANANTHAPURAM-695 001, REPRESENTED BY P.G.PRASANNA KUMAR, ASST.GENERAL MANAGER. BY SRI. A.S.P. KURUP, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/07/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.17755/2011-T: APPENDIX PETITIONERS' EXHIBIT: EXT.P.1: COPY OF THE NOTICE DTD 22/06/2011. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE. Prv. C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 17755 of 2011 --------------------------------- Dated this the 1st day of July, 2011 JUDGMENT Consequent to default committed in repaying a housing loan availed by the petitioner from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated. On invoking section 14(1) the Chief Judicial Magistrate Court was approached for taking over possession of the immovable property, which is the secured asset. That court had appointed an Advocate Commissioner who had issued Ext.P1 notice informing the petitioner about the steps taken to take over possession of the property. 2. According to the petitioner, the loan in question was availed in the year 2006 with repayment period extending to 20 years. The drastic steps are now being pursued without acceding to request made by the petitioner for permitting payment of the defaulted amounts, in order to regularise the account, within a short period. 3. Heard; learned Standing Counsel appearing for the WP(C).17755/2011 2 respondent Bank. It is submitted that the loan account is in chronic default and it stands classified as 'NPA', as early as in the year 2008. It is further submitted that, even the undertaking made by the petitioner before the CJM Court to make payment of the amounts within a stipulated period, was not complied with. It is further stated that the amount remaining over due for payment is more than Rs.2.18 lakhs. 4. Considering the statutory remedy provided under section 17(1) of the Act, it may not be justified on the part of this court to interdict with the proceedings, at this stage. However, learned counsel for the petitioner made a request to this court to permit regularisation on the basis of a specific undertaking made to the effect that the petitioner is relinquishing all challenges and that she is not intending to pursue any statutory remedy. An offer is made to make payment of the amounts in default in instalments within a short period. 5. Evenethough interference on merits is not warranted, considering the relinquishments made and also considering the fact that the repayment period is for 20 years, I am inclined to show indulgence in permitting regularisation. 6. Accordingly, the writ petition is disposed of directing WP(C).17755/2011 3 the respondent to keep in abeyance all further coercive steps for dispossession and sale of the property, subject to condition of the petitioner remitting the entire amount remaining overdue for payment (defaulted monthly instalments along with interest and expenses, if any due) in 3 (three) equal monthly instalments falling due on or 31.8.2011 and on or before the last day of the succeeding months. 7. If payment of the defaulted amount is regularised as directed above, then the respondent shall permit the petitioner to pay the future monthly instalments in the loan account in accordance with the original schedule of repayment. 8. It is made clear that on the event of default committed in payment of any one of the instalments as stipulated above, or any of the future monthly instalments, the respondents will be free to proceed with further steps on the basis of the notices already issued and on the basis of steps taken before the Chief Judicial Magistrate Court, and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K.ABDUL REHIM,JUDGE pmn/ WP(C).17755/2011 4