IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 2ND NOVEMBER 2010 / 11TH KARTHIKA 1932 WP(C).No. 30655 of 2010(F) -------------------------- PETITIONER(S): --------------- K.SUNIL, S/O.KARUNAKARAN, VALYAKATTU VILA, THAZHAM THEKKU, CHATHANOOR POST, KOLLAM. BY ADV. SRI.R.KISHORE SRI.G.HARIPRASAD RESPONDENT(S): --------------- THE STATE BANK OF INDIA, RAMSECCC,2ND FLOOR, RAVI'S ARCADE, KOLLAM 691013, REPRESENTED BY ITS MANAGER, KOLLAM BRANCH. ADV. SRI.K.K.CHANDRAN PILLAI - SC SRI.A.S.SAJUSH PAUL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.30655 of 2010-F ---------------------------------------- Dated this the 2nd day of November, 2010. J U D G M E N T The petitioner had availed a housing term loan as well as a cash credit facility, from the respondent Bank, during the year 2008-09. The amounts availed under the loan accounts were Rs.11,34,000/- and Rs.2,00,000/- respectively. Immovable property belonging to the petitioner was mortgaged for securing the housing term loan. Consequent to default committed in repayment, proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. Through Ext.P5 notice, intimation was given regarding steps taken as contemplated under Section 13(4) of the Act. 2. According to the petitioner, eventhough he made approaches with the respondent promising payment of the defaulted amounts and seeking regularisation of the housing loan account, the respondent was not acceding to W.P(C) No.30655 of 2010-F 2 such request and the coercive steps were being pursued. It is also contended that the property in question was not mortgaged with respect to the cash credit facility and the proceedings now initiated for realising both the amounts, resorting to steps under the SARFAESI Act, is illegal. 3. Taking note of the remedy provided under the statute, it is not proper for this Court to entertain a writ petition to consider merits of the contentions raised. It is noticed that the petitioner has not raised any objection against the demand issued under Section 13(2) nor he had taken any steps as contemplated under Section 17(1) against the steps now initiated. 4. However, learned counsel for the petitioner submitted that the petitioner is relinquishing all challenges against the SARFAESI proceedings and that he is not intending to pursue any statutory remedy, provided he may be permitted to pay off the defaulted amounts in the housing term loan for regularising the account, within a short period. 5. Learned standing counsel appearing for the W.P(C) No.30655 of 2010-F 3 respondent Bank on the basis of instructions submitted that the amount in default in the housing term loan account is around Rs.1.90 lakhs and the amount outstanding under the cash credit facility is around Rs.2.13 lakhs. It is further conceded that the property now proceeded against is not mortgaged for securing the cash credit facility and the proceedings under the SARFAESI Act is not maintainable for realisation of the amounts due under that account. 6. Under the above mentioned circumstances, I am of the opinion that some indulgence can be shown in permitting the petitioner to regularise the housing term loan account, within a short period, eventhough interference on merits is not possible. 7. Therefore, the writ petition is disposed of directing the respondent to keep in abeyance all further steps pursuant to Ext.P5 notice, subject to condition of the petitioner remitting the entire amounts in default in the housing term loan account (defaulted instalments along with interest and expenses if any due) in 2 (two) equal monthly instalments falling due on or before 30.11.2010 W.P(C) No.30655 of 2010-F 4 and 31.12.2010 along with the regular instalments due for the months of November and December 2010. 8. If payment of the defaulted amount is regularised as directed above, the respondent shall permit the petitioner to continue payment of the future instalments under the housing loan account in accordance with the original schedule of repayment. 9. It is made clear that on the event of default in payment of any of the instalments as stipulated above 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. 10. It is also made clear that the respondent will be free to proceed with any steps of recovery other than steps under the SARFAESI Act. C.K.ABDUL REHIM JUDGE ab