IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 10TH JUNE 2011 / 20TH JYAISHTA 1933 WP(C).No. 13394 of 2011(Y) ---------------------------------------- PETITIONER(S): ----------------------- AJITH KUMAR P., S/O. PARAMESWARAN PILLAI, AGED 46 YEARS, DWARAKA HOUSE, KATTOOR ROAD, KALAVOOR P.O., ALAPPUZHA DISTRICT. BY ADV. SRI.ABDUL JALEEL.A RESPONDENT(S): --------------------------- 1. STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM.PIN-695 001 2. STATE BANK OF INDIA, KALOVOOR BRANCH, ALAPPUZHA DISTRICT, REPRESENTED BY ITS MANAGER.PIN-688 522 3. STATE BANK OF INDIA, REGIONAL BUSINESS OFFICE, ALAPPUZHA, REPRESENTED BY ITS CHIEF MANAGER.PIN- 688 001 R1 BY SR GOVERNMENT PLEADER SRI. MATHEW GEORGE VADAKKEL R2 & R3 BY SRI.K.K.CHANDRAN PILLAI, SENIOR ADVOCATE SRI.A.S.SAJUSH PAUL , SC FOR SBI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.13394 of 2011 ------------------------------------------- Dated this the 10th day of June, 2011 J U D G M E N T ---------------------- Consequent to default committed by the petitioner in repaying a housing 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. On invoking Section 14(1) the respondents have approached the Chief Judicial Magistrate Court and an Advocate Commissioner was appointed to take over possession of the property. Ext.P4 is the notice issued by the Advocate Commissioner. 2. According to the petitioner, the loan in question was availed in the year 2006 with the repayment period extending to 15 years and the coercive steps of recovery was now being pursued without acceding request made by the petitioner to permit regularisation of the account on the basis of an offer made for payment of the amounts in default, within a short time. 3. When the writ petition came up for consideration, this court had shown indulgence in staying dispossession of the petitioner from the property in question, subject to payment of a sum of Rs.1 lakh. It is reported that the condition stipulated has already been complied with. W.P.(C).13394/11 -2- 4. Learned counsel for the respondent Bank submitted that the loan account is in chronic default and the petitioner had defaulted payment of monthly instalments consecutively. However, it is submitted that the amount remaining overdue for payment (defaulted amounts) after crediting payments already made will come to around Rs.74,000/-. 5. Considering availability of effective statutory remedy it may not be justified on the part of this court to interfere with the proceedings. However, learned counsel for petitioner made an appeal to this court to permit regularisation of the account on the basis of an undertaking that the petitioner is relinquishing all challenges against the proceedings and that he is relinquishing rights if any available to invoke statutory remedy. On the other hand, an offer is made to make payment of the amounts in default within a short period in order to regularise the account. 6. Even though interference on merits is not warranted, I am of the view that indulgence can be shown in permitting regularisation, in view of the fact that the petitioner had relinquished all challenges and also in view of the fact that the repayment period is for 15 years. 7. Accordingly the writ petition is disposed of directing the petitioner to pay of the entire amounts in default (defaulted W.P.(C).13394/11 -3- monthly instalments along with interest and other charges) in 3 (three) equal monthly instalments, falling due on or before 30.6.2011 and on or before the last day of the succeeding months, along with payment of regular EMIs due for the respective months. 8. If payment of defaulted amounts is regularised as directed above, then the respondents shall permit the petitioner to continue payment of future monthly instalments in accordance with the original schedule of repayment. 9. It is made clear that, on the event of default in payment of any one of the instalments as stipulated or any of the future monthly instalments, the respondents will be at liberty 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