IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 18TH SEPTEMBER 2009 / 27TH BHADRA 1931 WP(C).No. 25644 of 2009(A) ---------------------------------------- PETITIONER(S): ------------------------ P.K.SATHI, PANANTHOTTAM, PERUVANTHANAM P.O., PEERUMEDU. BY ADVS. SMT.S.MUMTAZ, SMT.ANJU VIJAYAN. RESPONDENT(S): --------------------------- 1. UNION BANK OF INDIA, KUMARAPURAM BRANCH, REP. BY THE MANAGER, KUMARAPURAM, THODUPUZHA. 2. UNION BANK OF INDIA, REP. BY THE AUTHORIZED OFFICER, REGIONAL OFFICE, UNION BANK BHAVAN, M.G.ROAD, STATUE, THIRUVANANTHAPURAM R1 & R2 BY ADV. MR. A.S.P.KURUP, SC, UNION BANK OF INDIA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 25644 of 2009 --------------------------------- Dated this the 18th day of September, 2009 JUDGMENT The petitioner is aggrieved by proceedings initiated by the respondent Bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) against the secured assets. The petitioner availed housing loan to the tune of Rs.3 lakhs from the 1st respondent, in the year 2006. When repayments in the loan account was defaulted the Bank initiated proceedings under the SARFAESI Act, and the petitioner had approached this court on an earlier occasion in WPC.No.36482/2008. On the basis of undertaking made by the petitioner that the entire arrears outstanding will be cleared within a period of one month, this court directed to keep in abeyance further proceedings. But inspite of lapse of considerable period thereafter, the petitioner has not effected payment of any amount. On the request of the Bank the Chief Judicial Magistrate has already appointed an Advocate Commissioner to take over possession of the property. WP(C).25644/2009 2 It is at this stage the present writ petition is filed. 2. Heard learned counsel appearing for the petitioner and the Standing Counsel for the respondent Bank. It is submitted by the learned Standing Counsel that the petitioner is a chronic defaulter and inspite of various chances given by the Bank as well as by this court, she has not paid any substantial amount. Learned counsel for the petitioner submitted that the amount of Rs.20,000/- was already paid after filing of this writ petition. The petitioner further submitted that the secured assets is the residential house belonging to the petitioner, and if it is taken over possession and sold in public auction, that will cause severe prejudice to her. It is submitted that the petitioner is ready to pay off the entire liability within a reasonable time in instalments. 3. Having considered the facts and circumstances, I am of the preliminary opinion that the petitioner does not deserve any indulgence. This court cannot interfere on the merits of the contentions against the proceedings, in view of the effective remedy by way of appeal provided under the SARFAESI Act. On equity also this court is not justified in showing any indulgence WP(C).25644/2009 3 since the petitioner failed in complying with earlier judgment. 4. But still, having considered the fact that the petitioner is a lady and the secured asset is her residential building, I am inclined to provide her one more chance to pay off the liability and to save the asset from being sold. 5. Therefore the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.1,00,000/- (Rupees One Lakh only) on or before 31.10.2009. On payment of such amount the Bank shall furnish a balance statement to the petitioner, after crediting all payments effected and after permitting waiver of interest if any possible. The petitioner will further make payment of the balance so intimated, in four equal monthly instalments starting from 30.11.2009 and on or before the last day of succeeding 3(three) months. 6. It is made clear that on default in payment of the initial amount or any of the instalments, the Bank will be at liberty to proceed further steps from the stage it is kept pending pursuant to notices already issued and action taken under the SARFAESI Act. It is also made clear that the benefit granted under this judgment is subject to the condition that the petitioner is WP(C).25644/2009 4 precluded from raising any subsequent challenges against the recovery proceedings before this court or before any other forum. C.K.ABDUL REHIM,JUDGE pmn/