IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 5TH OCTOBER 2010 / 13TH ASWINA 1932 WP(C).No. 28710 of 2010(K) ----------------------------------------- PETITIONER(S): ------------------------ MANUEL JOSEPH ANTONY, PUTHENVEETTIL VALAVI, VAULT, CHEMBUMUKKU, KAKKANAD, ERNAKULAM-682 021. BY ADVS. SRI.MANOJ RAMASWAMY, SRI.SUNNY MARKOSE. RESPONDENT(S): ---------------------------- THE AUTHORIZED OFFICER & CHIEF MANAGER, FEDERAL BANK LTD., PANAMPILLY NAGAR, COCHIN-682 036. BY ADVS. SRI.A.ANTONY,SC SMT.LEELAMMA ANTONY. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.28710 of 2010 ------------------------------------------- Dated this the 5th day of October, 2010 J U D G M E N T ---------------------- Petitioner had availed a housing loan from the respondent Bank to the tune of Rs.18,50,000/-, during the year 2008. Repayment period of the loan was for 15 years, which will end only in the year 2023. Consequent to default committed in repayment of regular monthly installments, the respondent initiated steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Ext.P3 is the notice issued taking steps contemplated under Section 13(4). According to the petitioner, he submitted Ext.P4 application before the respondent seeking permission for regularising the account, but the same was not considered. 2. Learned counsel appearing for the respondent, on the basis of instructions, submitted that no representation as Ext.P1 was received by the respondent. 3. Considering the statutory scheme the petitioner W.P.(C).28710/10-K -2- has got effective alternate remedies, if he is aggrieved by the proceedings under the SARFAESI Act. Challenge raised against SARFAESI proceedings in a writ petition could not be entertained under such circumstances. However, as a gesture of indulgence this court issued an interim order on 17.9.2010 restraining dispossession of the petitioner from the property, on condition of payment of a sum of Rs.1 lakh. It is submitted that the petitioner had already complied with the condition. Learned counsel for the respondent submitted that even after crediting the said payment, an amount of Rs.1.35 lakhs is still due from the petitioner, towards the overdue installments along with interest. It is submitted that if the petitioner makes payment of the said amount immediately, regularisation can be considered. 4. Having regard to facts and circumstances prevalent in this case and the rival submissions, I am of the view that eventhough interference on merits is not at all desirable, indulgence can be shown in permitting the petitioner for regularising payments in the account. 5. In the result, the writ petition is disposed of directing the respondents to keep all further coercive steps pursuant to Ext.P3 notice in abeyance, provided the petitioner remits the W.P.(C).28710/10-K -3- entire defaulted amount along with interest and expenses if any due, in 2 (two) equal monthly installments falling due on or before 30.10.2010 and on or before 30.11.2010. The petitioner shall also pay the regular installments due for the months of October and November 2010 along with the above said payments. 6. If payments of defaulted amounts are regularised as directed above, the respondent shall permit the petitioner to continue payment of future installments 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 installments, the respondent will be free to proceed with further steps pursuant to the notices already issued. It is also made clear that the relief granted as above will be 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. C.K.ABDUL REHIM, JUDGE. okb