IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 9TH FEBRUARY 2011 / 20TH MAGHA 1932 WP(C).No. 3846 of 2011(E) -------------------------------- PETITIONER(S): ------------------- ASOK KUMAR.G,S/O.GOPALAKRISHNAN, PATTAPURAYIDATHIL,NEDUNGOLAM.P.O,PARAVUR, KOLLAM DISTRICT,PIN-691334. BY ADV. SRI.C.RAJENDRAN RESPONDENT(S): -------------------- THE CHIEF MANAGER,UNION BANK OF INDIA, REGIONAL OFFICE,STATUE,THIRUVANANTHAPURAM - 695 001. BY ADV. SRI. A.S.P. KURUP, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs W.P.(C). NO. 3846 2011 APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE PETITION FILED IN BEFORE THE CHIEF JUDICIAL MAGISTRATE COURT, KOLLAM DATED 10/12/2010. P2: COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DATED 11/01/2011 RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A. TO JUDGE. svs C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.3846 of 2011-E ---------------------------------------- Dated this the 9th day of February, 2011. J U D G M E N T Consequent to default committed in repayment of a housing loan availed by the petitioner from the respondent Bank, coercive steps under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. Consequent to approach made by the respondent before the Chief Judicial Magistrate Court invoking Section 14(1), an Advocate Commissioner was appointed to take over possession of the property, which is the secured asset. According to the petitioner he is residing with his family in the said property. 2. Contention of the petitioner is that the coercive steps are now being pursued without acceding to the request made by the petitioner to permit regularisation of the account, by payment of the amounts in default, within a short period. 3. Heard; standing counsel appearing for the respondent Bank. It is stated that the petitioner had committed consecutive defaults in payment of regular monthly instalments and the W.P(C) No.3846 of 2011-E 2 amounts outstanding overdue for payment is around Rs.63,000/-. 4. Considering the effective alternative remedy available under the statute, it may not be justified on the part of this Court to interfere with the proceedings, at this stage. However, learned counsel for the petitioner made an appeal to this Court to permit regularisation of the account, in view of the fact that the repayment period of the loan will expire only in the year 2020. It is undertaken that the petitioner is relinquishing all challenges raised and also rights if any available to invoke the statutory remedy. Considering the limited prayer for permitting regularisation, I am of the view that, eventhough interference on merits is not desirable, indulgence can be shown in permitting regularisation in view of the relinquishments made. 5. Therefore the writ petition is disposed of directing the respondent to keep in abeyance all further coercive steps for dispossession and sale of the property, subject to condition of the petitioner remitting the amounts overdue for payment (defaulted monthly instalments along with interest and expenses if any due) in 2 (two) equal monthly instalments, falling due on or before 28.2.2011 and on before 31.3.2011 along with payment of W.P(C) No.3846 of 2011-E 3 regular monthly instalments due with respect to those months. 6. If payment of amount in default is regularised as directed above, the respondent shall permit the petitioner to continue payment of future monthly instalments in accordance with the original schedule of repayment. 7. It is made clear that on the event of default in payment of any one of the instalments as stipulated above or any 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 petitioner is precluded from raising any subsequent challenge against the proceedings. C.K.ABDUL REHIM JUDGE ab