IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 2ND NOVEMBER 2009 / 11TH KARTHIKA 1931 WP(C).No. 29737 of 2009(J) -------------------------- PETITIONER(S): --------------- MOHAMMED BASHEER, S/O. ISMAIL, KUTTIKKADU THENGUVILA VEEDU, KOITHOORKONAM P.O., POTHENCODE, THIRUVANANTHAPURAM. BY ADV. SRI.M.SREEKUMAR RESPONDENT(S): --------------- 1. STATE BANK OF TRAVANCORE, REPRESENTED BY ITS GENERAL MANAGER, HEAD OFFICE, THIRUVANANTHAPURAM. 2. BRANCH MANAGER, SBT POTHENCODE BRANCH, POTHENCODE, THIRUVANANTHAPURAM DISTRICT. 3. AUTHORISED OFFICER (CHIEF MANAGER), STATE BANK OF TRAVANCORE, POTHENCODE BRANCH, POTHENCODE, THIRUVANANTHAPRUAM DISTRICT. ADV.SRI.R.S.KALKURA, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.29737 OF 2009 ------------------------------ Dated this the 2nd day of November, 2009 J U D G M E N T ---------------------- 1. Petitioner is aggrieved by proceedings initiated under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) against the immovable property, which is the secured asset with respect to a loan availed by him from the respondent Bank. The petitioner had availed a housing loan during the year 2005 to the tune of Rs.8 lakhs. As per terms of the loan agreement repayment has to be effected within a period of 15 years in equal monthly installments of Rs.8000/- each. But the petitioner defaulted regular repayments and consequently the Bank had initiated proceedings against the secured assets. Ext.P3 notice has now been issued demanding payment of the entire loan amount along with interest overdue. 2. According to the petitioner on receipt of Ext.P3 the petitioner had approached the Bank with an offer to regularise the loan account by paying the defaulted installments within a reasonable time. Since the Bank has not acceded to such request the writ petition is filed. W.P.(C).29737/09-J 2 3. Heard standing counsel appearing for the respondent Bank, who on the basis of instructions submitted that, the total balance outstanding will come to Rs.9 lakhs and the defaulted installments alone will come around Rs.4 lakhs. It is submitted that the loan account is in chronic default and therefore the Bank is not favouring regularisation. 4. Having considered rival contentions and facts and circumstances of the case I am of the opinion that some indulgence can be shown in the matter of permitting the petitioner to regularise the loan account within a reasonable time. 5. In the result the writ petition is disposed of directing the petitioner to make payment of the amounts pertaining to the defaulted installments along with overdue interest and expenses if any liable, in 4 (four) equal monthly installments starting from 30.11.2009 and on or before the last day of the succeeding months. The petitioner shall also make payment of the regular installments due from November 2009 onwards. 6. If the amounts as directed above is paid, the respondent Bank shall permit the petitioner to continue repayments in the loan account as per the original schedule of the repayment. Needless to say that while collecting the defaulted installments, the Bank shall give credit to whatever W.P.(C).29737/09-J 3 amounts paid after initiation of the proceedings under the SARFAESI Act. 7. It is made clear that on the event of default in payment of any of the amounts as stipulated above the respondents will be free to proceed with further steps pursuant to the notices already issued and on such event the petitioner will be precluded from raising any subsequent challenge either before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb