IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 22ND FEBRUARY 2011 / 3RD PHALGUNA 1932 WP(C).No. 38677 of 2010(H) -------------------------- CMP.2796/2010 of C.J.M.,TRIVANDRUM .................... PETITIONER(S): --------------- 1. YASODA, W/O.ARJUNAN, KIDANGIL HOUSE, ALAYATTY, PULIYARAKONAM PO, THIRUVANANTHAPURAM. 2. A.BINU, S/O.ARJUNAN KIDANGIL HOUSE, ALAYATTY, PULIYARAKONAM PO, THIRUVANANTHAPURAM. 3. A.BAIJU, S/O.ARJUNAN, KIDANGIL HOUSE, ALAYATTY, PULIYARAKONAM PO, THIRUVANANTHAPURAM. 4. BINDU, D/O. ARJUNAN, KIDANGIL HOUSE, ALAYATTY, PULIYARAKONAM PO, THIRUVANANTHAPURAM. BY ADV. SRI.P.NARAYANAN SRI.M.C.RATNAKARAN RESPONDENT(S): --------------- 1. CORPORATION BANK REP BY ITS BRANCH MANGER GOVT.PRESS ROAD, THIRUVANANTHAPURAM - 695 001. 2. THE AUTHORISED OFFICER CORPORATION BANK GOVT.PRESS ROAD, THIRUVANANTHAPURAM - 695 001. ADV. SRI.N.RAJENDRAN FOR R1 SRI.K.S.FRIJO FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.38677 of 2010-H ---------------------------------------- Dated this the 22nd day of February, 2011. J U D G M E N T Coercive steps initiated under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) against the immovable property which is the secured asset, is the subject matter of challenge in this writ petition. It is evident that the petitioners had availed a housing loan as well as another loan under the PMRY Scheme and the steps as stated above was initiated consequent to default committed in repayment. Contention of the petitioners is that the steps for dispossession of the property is now being pursued without considering request made for permitting payment of the amounts in a phased manner, within a reasonable time. 2. Standing counsel appearing for the respondent Bank submitted that, both the loan accounts are in chronic default and the total amount outstanding is more than W.P(C) No.38677 of 2010-H 2 Rs.3.05 lakhs. Considering the fact that the petitioners have not availed the remedy provided under Section 17(1) of the SARFAESI Act, it is not justified on the part of this Court to interdict with the matter, which is now pending before the Chief Judicial Magistrate Court. 3. But having confronted with the situation, learned counsel for the petitioners undertook that the petitioners are relinquishing challenges against the proceedings and that they are also relinquishing rights if any available to invoke statutory remedy. On the other hand, the petitioners seek indulgence of this Court in permitting payment of the entire balance outstanding, in a phased manner, within a reasonable time. 4. Considering the limited relief sought for, I am of the view that, eventhough interference on merits is not warranted, steps now initiated can be restrained subject to condition of the petitioners remitting the entire balance within a short period. 5. Accordingly, the writ petition is disposed of W.P(C) No.38677 of 2010-H 3 directing the respondents to keep in abeyance all further steps for dispossession and sale of the property, subject to condition of the petitioners remitting the entire amount along with interest and expenses if any due, in 4 (four) equal monthly instalments, falling due on or before 31.3.2011 and on or before the last day of succeeding months. 6. It is made clear that on the event of default in payment of any one 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 condition that the petitioners are precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab