IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 14TH MARCH 2011 / 23RD PHALGUNA 1932 WP(C).No. 7061 of 2011(G) --------------------------------------- PETITIONER(S): ------------------------- SURESHKUMAR, S/O.CHANDRAN, AGED 34 YEARS, MATTATHIL HOUSE, PADY P.O., KODALI, THRISSUR. BY ADVS. SRI.V.M.KRISHNAKUMAR, SMT.P.R.REENA. RESPONDENT(S): --------------------------- 1. THE AUTHORIZED OFFICER UNDER THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS & ENFORCEMENT OF SECURITY INTEREST ACT, (THRISSUR DISTRICT CO-OPERATIVE BANK LTD, H.O.SAHAKARANA SADABDHI MANDIRAM, TUDA ROAD, KOVILAKATHUMPADAM, THIRUVAMPADI P.O., THRISSUR, PIN - 680 022. 2. THRISSUR DISTRICT CO-OPERATIVE BANK, H.O.SAHAKARANA SADABDHI MANDIRAM, TUDA ROAD, KOVILAKATHUMPADAM, THIRUVAMPADI P.O., THRISSUR, PIN - 680 022. 3. THRISSUR DISTRICT CO-OPERATIVE BANK, KODALI BRANCH, P.O.PADI, THRISSUR, PIN - 680 699 REP. BY BRANCH MANAGER. BY ADV. SRI. P.C. SASIDHARAN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.7061/2011 G APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE 1ST PAGE OF THE PASSBOOK ISSUED BY THE 3RD RESPONDENT. P2: COPY OF THE LITIGATION NOTICE DTD. 16/07/2009. P3: COPY OF THE LETTER ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. P4: COPY OF THE REPRESENTATION FILED BY THE PETITIONER DTD.1/3/2011. RESPONDENT'S EXHIBITS: N I L /TRUE COPY/ P.A.TO JUDGE Kss C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.7061 of 2011-G ---------------------------------------- Dated this the 14th day of March, 2011. J U D G M E N T Consequent to default committed by the petitioner in repaying a loan availed from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated and Ext.P3 notice was issued under Section 13(2) of the Act. Through Ext.P4, the petitioner requested time for clearing payment of the amounts remaining overdue, which request the respondents have not acceded to. Threatened with further coercive steps, this writ petition is filed. 2. Considering the effective, alternative remedy available under the SARFAESI Act and also considering the fact that the proceedings is only at the stage of issuing demand under Section 13(2), it is not proper or justified on the part of this Court in interfering with the proceedings. 3. However, learned counsel for the petitioner W.P(C) No.7061 of 2011-G 2 undertook that the petitioner is not intending to pursue any statutory remedy and that he is relinquishing all challenges against the proceedings. Pointing out the fact that the repayment period of the loan will expire only in the year 2016, a limited relief is sought for to permit the petitioner to regularise the account, on the basis of an offer made that the amount overdue will be paid within a short time. 4. Heard; counsel appearing for the respondent Bank. It is stated that since the last two years, the petitioner has not effected any payment and the total amount outstanding is more than Rs.6.06 lakhs. Even the amount overdue, which is defaulted instalments, will come to approximately Rs.2.70 lakhs, is the submission. 5. Having considered the facts and circumstances, I am of the view that, eventhough interference on merits is not proper, the petitioner can be permitted to regularise the account, especially in view of the relinquishments made. 6. Accordingly, the writ petition is disposed of directing the petitioner to make payment of the amounts remaining overdue (defaulted monthly instalments along W.P(C) No.7061 of 2011-G 3 with interest and expenses if any due) in 4 (four) equal monthly instalments, falling due on or before 31.3.2011 and on or before the last day of succeeding months, along with payment of regular monthly instalments due for the respective months. 7. If payments of the defaulted amount is regularised as directed above, then the respondents shall permit the petitioner to continue payment of the future monthly instalments in terms of the original schedule of repayment. 8. It is made clear that on the event of default in payment of any one of the instalments as 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 petitioner is precluded from raising any subsequent challenge against such proceedings. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// ab P.A to Judge