IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 19TH OCTOBER 2011 / 27TH ASWINA 1933 WP(C).No. 6470 of 2011(G) ------------------------- PETITIONERS: ------------ 1. BESHY MATHEW, HALIYACHIRA HOUSE, RAJAKUMARI.P.O., IDUKKI DISTRICT, PIN-685 619. 2. SALOMY BESHY, W/O.BESHY MATHEW, THALIYACHIRA HOUSE, RAJAKUMARI.P.O., IDUKKI DISTRICT, PIN-685 619. BY ADVS. SRI.SAJI MATHEW SRI.DENU JOSEPH SRI.JUFIN GEORGE VALOORAN RESPONDENTS: ------------ 1. THE AUTHORIZED OFFICER UNDER SARFAESI ACT, M/S.AIG HOME FINANCE INDIA LTD., NO.28, (FORMERLY KNOWN AS WEIZMANN HOMES LTD.) 37/3450, KALYANI TOWER, 2ND FLOOR, DESHABHIMANI JUNCTION, KALOOR, COCHIN-17. 2. M/S.A.I.G.HOME FINANCE INDIA LTD., (FORMERLY KNOWN AS WEIZMANN HOMES LTD.) 2ND FLOOR, CITY TOWER, 117, SIR THYAGARAYA ROAD, T.NAGAR, CHENNAI-600 017. 3. M/S.A.I.G.HOME FINANCE INDIA LTD., (FORMERLY KNOWN AS WEIZMANN HOMES LTD.) 37/3450, KALYANI TOWER, 2ND FLOOR, DESHABHIMANI JUNCTION, KALOOR, COCHIN-17. R1 TO R3 BY ADV.SRI.RAJESH THOMAS THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19/10/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JJJ WP(C).No. 6470 of 2011(G) APPENDIX PETITIONERS EXHIBITS: P1: COPY OF THE NOTICE DATED 30.07.2008 ISSUED BY THE 1ST RESPONDENT P2: COPY OF THE LETTER DATED 21.8.2008 RESCHEDULING THE HOUSING LOAN ALONG WITH AMORTIZATION SCHEDULE P3: COPY OF THE CONCILIATION NOTICE ISSUED BY M/S.KOHLI & SOBTI, ADVOCATES ON BEHALF OF M/S. AIG HOME FINANCE INDIA LTD, DATED 10.8.2009 P4: COPY OF THE ORDER DATED 23.6.2010 PASSED BY THE CJM COURT, ERNAKULAM IN CRL.M.P.NO:3832/2010 P5: COPY OF THE NOTICE DATED 21.02.2011 BY THE ADVOCATE COMMISSIONER RESPONDENTS EXHIBITS: NIL //TRUE COPY// P.A.TO JUDGE JJJ S. SIRI JAGAN, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No.6470 of 2011 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 19th day of October, 2011 J U D G M E N T The petitioners challenge proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) initiated by the respondents for recovery of loan amount due from the petitioners to the respondents. The petitioners have disputes regarding the amount due. However petitioners seek permission to regularise the loan account by paying the defaulted arrears of instalments of repayment of loan and to take up the question regarding the amounts due with the financial institution. 2. This is opposed by the counsel for the financial institution. 3. I have considered the rival contentions in detail. 4. On 01.03.2011, this court has passed the following order: “Urgent notice on admission to respondents 1 to 3 by speed W.P.(C)No.6470 of 2011 -2- post returnable within ten days. Meanwhile there will be an interim stay against dispossession of the petitioners from the property pursuant to Ext.P4 and P5, if not already dispossessed, subject to condition of the petitioners remitting a sum of Rs.50,000/- (Rupees fifty thousand only) within three weeks from today. It is made clear that the petitioner will be at liberty to approach the CJM Court, Ernakulam raising the question of territorial jurisdiction in entertaining C.M.P. No.3832 of 2010. Post after three weeks.” It is admitted that the petitioners have paid that amount. In the peculiar facts and circumstances of the case, I direct the respondents to permit the petitioners to regularise the loan account by paying off the arrears of defaulted installments of repayment of loan within one month and permit them to pay off the future installments as per the original loan agreement on due dates. The petitioners shall file a representation before the financial institution regarding their dispute on the amounts due. The competent among the respondents shall consider the same and pass orders on the same within two weeks from the date of receipt of the representation, after affording an opportunity of being heard to the petitioners. If the W.P.(C)No.6470 of 2011 -3- petitioners pay the arrears of installments of repayment as directed above and continue to pay the future installments as per the original loan agreement, further proceedings under the Act shall be kept in abeyance. However if the petitioners commit default in payment of either the defaulted arrears or any of the future installments, it would be open to the respondents to continue proceedings as now initiated without having to issue any fresh notice or proceedings in that regard. I make it clear that, if the petitioners have any further grievance regarding the amounts due, it would be open to the petitioners to take up the matter with the appropriate authorities, appropriately. S. SIRI JAGAN JUDGE shg/