IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 8TH APRIL 2011 / 18TH CHAITHRA 1933 WP(C).No. 6767 of 2011(U) -------------------------------------- CMP.444/2011 of C.J.M.,KOTTAYAM .................... PETITIONER(S): ------------------------- NAVAS P.A., S/O. P.K.ABOOBACKER, AGED 39, PALLIPPARAMBU, I.E.NAGAR P.O., CHANGANASSERY, KOTTAYAM DISTRICT. BY ADV. SRI.U.R.HARSHAKUMAR RESPONDENT(S): --------------------------- 1. THE AUTHORIZED OFFICER, UNION BANK OF INDIA, M.G.ROAD, ERNAKULAM, PIN-682 035. 2. THE BRANCH MANAGER, UNION BANK OF INDIA, CHANGANASSERY BRANCH.PIN- 685 017 R1 & R2 BY ADV.SRI. A.S.P. KURUP, SC FOR UBI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/04/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts C.K.ABDUL REHIM, J. ------------------------------- W.P.(C).No.6767 of 2011 ------------------------------- Dated this the 8th day of April, 2011. J U D G M E N T Consequent to default committed by the petitioner in effecting regular repayment in a cash credit facility and a term loan availed from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. Immovable property belonging to the petitioner, which is the secured asset, was proceeded against by invoking Section 14(1) of the Act. Going by Ext.P2, which is the application filed before the Chief Judicial Magistrate Court, it is evident that the proceedings was initiated claiming a total arrears of Rs.15,93,478.51, along with interest. 2. By virtue of an interim order issued by this Court on 7.3.2011, dispossession of the property was stayed subject to condition of the petitioner remitting an amount of Rs.2 lakhs. It is conceded that the amount stipulated has already been 2 W.P.(C).No.6767 of 2011 paid. 3. Learned standing counsel appearing for the respondent Bank submitted that, by payment of the amount as stated above, the overdue in both the accounts now stands regularised. Under such circumstances, the respondent bank concede that the petitioner can be permitted to continue regular repayment in the term loan account as well as to permit continuation of the cash credit facility within the limits sanctioned. Hence, I am of the opinion that, the writ petition can be disposed of by incorporating necessary measures permitting the respondent bank to take further steps of recovery in case of any future default. 4. Accordingly, the writ petition is disposed of, directing the respondents to keep in abeyance all further coercive steps for dispossession and sale of the property, provided the petitioner remits payment of future monthly instalments in the term loan account, in accordance with the original schedule of repayment and also on keeping 3 W.P.(C).No.6767 of 2011 payment of amounts under the cash credit facility to maintain the account within the limits sanctioned. 5. It is made clear that on the event of default in payment of amounts as stipulated, the respondents will be free to proceed with further steps based on the proceedings already initiated under Section 14(1) of the Act, and on such event the petitioner will be precluded from raising any subsequent challenge. C.K.ABDUL REHIM, Judge ami/