IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 26TH OCTOBER 2009 / 4TH KARTHIKA 1931 WP(C).No. 10078 of 2009(D) -------------------------- CMP.2018/2009 of C.J.M.,KOLLAM .................... PETITIONER(S): --------------- T.THULASEEDHARAN, MANOJNAM,AGASTHYACODU,ANCHAL. BY ADV. SRI.B.PREMOD RESPONDENT(S): --------------- STATE BANK OF TRAVANCORE, REP.BY ITS CHIEF MANAGER,ANCHAL. ADV. SRI.R.S.KALKURA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.10078 OF 2009 ------------------------------ Dated this the 26th day of October, 2009 J U D G M E N T ---------------------- 1. The petitioner had availed a Housing Loan from the respondent Bank during the year 2000, to the tune of Rs.2,50,000/-. As per terms of the loan agreement, the amount was agreed to be repaid in 140 equal monthly installments at the rate of Rs.2600/- per month. Immovable property belonging to the petitioner was mortgaged for securing the loan transaction. According to the petitioner he had effected repayments promptly for a considerable period and thereafter regular repayments could not be effected due to some unforeseen financial stringencies. Consequent to default committed in payment of the amounts, the Bank had initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and notice under Section 13(2) as evidenced from Ext.P2, claiming an amount of Rs.4,22,987/- as on 30.11.2008 was demanded. According to the petitioner he had effected considerable payment even after receipt of notice under Section 13(2). But without considering the request of the petitioner for permitting W.P.(C).10078/09-D 2 to regularise the loan account, the respondent Bank had approached the Chief Judicial Magistrate, under Section 14(1) of the Act and an Advocate Commissioner was appointed to take over possession of the property. 2. By virtue of an interim order issued by this court on 27.3.2009, the petitioner had effected payment of an amount of Rs.80,000/- in two installments. It is submitted that he had effected further payment of Rs.15,000/- on 24.10.2009. The petitioner is making serious dispute about correctness of the amount in demand. However, the petitioner is expressing his willingness to pay off the entire liability, provided the Bank will consider waiver of interest/default interest to the possible extent. The respondent Bank is not favouring in permitting any further time for making payment of the outstanding balance. 3. Having considered contentions on both sides and facts and circumstances of the case, I am of the opinion that indulgence can be shown in permitting the petitioner to pay off the entire liability, within a reasonable time, in installments, eventhough interference on merit with respect to the SARFAESI proceedings is not desirable in view of the effective alternate remedy available. 4. Under the above circumstances the writ petition is disposed of directing the petitioner to make payment of an W.P.(C).10078/09-D 3 amount of Rs.75,000/- on or before 30th November, 2009. The respondent is directed to keep in abeyance further coercive steps till such date. If the amount as stipulated is paid, the respondent Bank shall issue a balance statement to the petitioner after crediting all payments and after considering waiver of interest/default interest to the possible extent. The petitioner shall continue payment of the balance so intimated in 4 (four) equal monthly installments falling due on or before 31.12.2009 and on or before the last day of succeeding months. 5. It is made clear that on the event of default in making payment of any of the amounts as stipulated above, the respondents will be free to take further steps pursuant to orders already issued by the Chief Judicial Magistrate Court and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb