IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 23RD DAY OF FEBRUARY 2011/4TH PHALGHUNA 1932 WP(C).No. 2771 of 2011 (V) -------------------------- PETITIONER(S): ------------- 1. ARUN MOHAN, S/O. M.V.MOHANAN, MUNDAKKAL HOUSE, KIDANGARA P.O., ALAPPUZHA DISTRICT. 2. M.V.MOHANAN, MUNDAKKAL HOUSE, KIDANGARA P.O., ALAPPUZHA DISTRICT. 3. THANKACHY MOHANAN, W/O. M.V.MOHANAN, MUNDAKKAL HOUSE, KIDANGARA P.O., ALAPPUZHA DISTRICT. BY ADVS.SRI.M.V.THAMBAN SRI.R.REJI SMT.THARA THAMBAN SRI.B.BIPIN SMT.REVATHY P.NAIR RESPONDENT(S): -------------- 1. THE FEDERAL BANK LTD., REPRESENTED BY ITS MANAGER, KIDANGARA BRANCH ALAPPUZHA DISTRICT-686 507. 2. THE AUTHORIZED OFFICER, FEDERAL BANK LTD., REGIONAL OFFICE, SREE RAJA RAJESWARI BUILDINGS, CHURCH ROAD, MULLAKKAL ALAPPUZHA DISTRICT-688 001. R1 & 2 BY SRI.GEORGE VARGHESE (MANACHIRACKEL) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23-02-2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 2771 of 2011 (V) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : COPY OF THE EXTRACT OF THE PASS BOOK SHOWING ENTRIES OF PAYMENT EXT.P2: COPY OF THE POSSESSION NOTICE ISSUED TO THE PETITIONER. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A TO JUDGE ab C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.2771 of 2011-V ---------------------------------------- Dated this the 23rd day of February, 2011. J U D G M E N T The petitioners 2 and 3 are the parents of the 1st petitioner, who availed an educational loan from the respondent Bank, by mortgaging properties belonging to the 2nd petitioner. Consequent to default committed in repayment, steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated and Ext.P2 notice was issued intimating the taking over possession of the property, under Section 13(4) of the Act. 2. According to the petitioners such coercive steps were initiated without taking into consideration of various payments effected and also without considering the request made for permitting regularisation of the account. It is stated that the loan was availed in the year 2004 and the repayment period will expire only in the year 2013. 3. Counsel appearing for the respondent Bank, on the basis of instructions, submitted that the petitioners have committed default in payment of consecutive monthly W.P(C) No.2771 of 2011-V : 2 : instalments and the amount outstanding overdue for payment itself is more than Rs.53,000/-. 4. Considering the effective alternative remedy available against Ext.P2, I am of the view that this Court may not be justified in interfering with the matter. However, learned counsel for the petitioners made an undertaking that the petitioners are not intending to pursue any statutory remedy and that they are relinquishing all challenges. On the other hand a limited prayer is made to permit regularisation of the accounts on the basis of an offer for payment of the defaulted amounts, within a short period. 5. Considering such situation, I am of the view that, eventhough interference on merits is not proper, the petitioner can be permitted to regularise the account, subject to liberty reserved in favour of the respondents to proceed with all further steps in case of any default. 6. Accordingly, the writ petition is disposed of directing the respondent Bank to keep in abeyance all further steps for dispossession and sale of the property, subject to condition of the petitioners remitting the overdue amounts (defaulted monthly instalments along with interest and expenses if any due) on or W.P(C) No.2771 of 2011-V : 3 : before 31.3.2011 along with payment of regular monthly instalments due for the month of March 2011. 7. If payment of defaulted amounts is regularised as directed above, the respondents shall permit the petitioners to continue payment of the future instalments in terms of the original schedule. 8. It is made clear that on the event of default in payment of the amount stipulated above or any of the future monthly instalments, the respondent 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 petitioners are precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab