IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 28TH SEPTEMBER 2010 / 6TH ASWINA 1932 WP(C).No. 27765 of 2010(U) -------------------------- PETITIONER: ------------------- KRIPAKARAN.I, T.C.NO.14/601, PALAYAM, VIKAS BHAVAN P.O., THIRUVANANTHAPURAM. BY ADV. SRI.C.K.MOHANAN RESPONDENTS: ---------------------- 1. STATE BANK OF INDIA, POST BOX NO.14, M.G.ROAD, THIRUVANANTHAPURAM, REPRESENTED BY THE CHIEF MANAGER. 2. STATE BANK OF INDIA, RACPC, L.M.S.COMPOUND, THIRUVANANTHAPURAM-33, REP. BY THE AUTHORISED OFFICER. BY SRI.R.S.KALKURA, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK C.K.ABDUL REHIM, J --------------------------- W.P(C) No.27765 of 2010-U ---------------------------- Dated this the 28th day of September, 2010. J U D G M E N T The petitioner was threatened with coercive steps for taking over possession of the residential property, under the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). He committed default in repayment of two housing loans availed from the respondent Bank in the years 2005 and 2007 respectively. The repayment period of the loans is not over and considerable period is left to be completed. According to the petitioner the repayment became irregular since the year 2008 onwards, because the petitioner's wife, who was working as a teacher in an aided school, was transferred due to division fall and that she was not being paid salary. According to the petitioner inspite of offering payment of the defaulted amounts with a view to regularise the account, the respondent Bank is not acceding to such request and coercive steps are being threatened for recovery of the entire amounts. It is stated by learned counsel for the petitioner that a notice under Section 13 (2) was already issued. W.P(C) No.27765 of 2010-U 2 2. Learned counsel for the respondents submitted that there is chronic default in both the accounts and the petitioner has not paid any amount since 2008 onwards. 3. Against the proceedings initiated under the SARFAESI Act, the petitioner has got an effective remedy to object any demand raised under Section 13(2) and a further remedy is also provided against coercive steps if any initiated. Under such circumstances, I am not inclined to entertain this writ petition for considering challenges raised against the proceedings on its merits, at this stage. 4. However, learned counsel for the petitioner submitted that the petitioner is not intending to pursue challenges against the proceedings by approaching the statutory authority. On the other hand he is seeking indulgence for permitting regularisation in the loan accounts. It is offered that the petitioner is ready and willing to make payment of the defaulted amounts within a short period. Eventhough the respondents are not favouring for permitting regularisation, considering the fact that the repayment period in both the loan accounts will expire only in the year 2020 and thereafter, I am inclined to permit regularisation of the account. 5. The writ petition is accordingly disposed of directing the W.P(C) No.27765 of 2010-U 3 respondents to keep in abeyance further steps of recovery pursuant to the notices already issued, provided the petitioner remits the entire defaulted amount (defaulted monthly instalments along with interest and expenses if any due) in two (2) equal monthly instalments, falling due on or before 15.11.2010 and on or before 15.12.2010. The petitioner will also make payment of regular instalments due with respect to the months of November and December 2010, along with such payments. 6. If payments of defaulted arrears is regularised as directed above, the respondents shall permit the petitioner to continue payment of future instalments in accordance with the original schedule of repayment. 7. It is made clear that on the event of default in payment of any of the instalments, the respondents will be free to proceed with further steps. It is further made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against such proceedings, either before this Court or before any other forum. Sd/- C.K.ABDUL REHIM JUDGE ab //True Copy//