IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 8TH DECEMBER 2009 / 17TH AGRAHAYANA 1931 WP(C).No. 34944 of 2009(K) PETITIONER(S): ------------------- P. YASODHARAN, AGED 63 YEARS, VINEESH BHAVAN, CHOORALLUR, THEKKEKARA VILLAGE, MAVELIKKARA. BY ADV. MR.V.ANIL (K/1480/98) RESPONDENT(S): ----------------------- 1. THE REGIONAL MANAGER, RESERVE BANK OF INDIA, ERNAKULAM. 2. THE AUTHORISED OFFICER, DEWAN HOUSING FINANCE CORPORATION LTD., BRANCH OFFICE AT IST FLOOR, K.M. BUILDING, PALARIVATTOM, KOCHI. 3. THE BRANCH MANAGER, DEWAN HOUSING FINANCE CORPORATION LTD., BRANCH OFFICE AT IST FLOOR, K.M. BUILDING, PALARIVATTOM, KOCHI. R2 & R3 BY ADV MR. PAULOCHAN ANTONY, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 34944 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 8th day of December, 2009 J U D G M E N T 1. Grievance of the petitioner is against coercive steps initiated under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed in repayment of a housing loan availed by the petitioner from the respondents 2 & 3, residential property of the petitioner, which is the secured asset, has already been taken possession, invoking the provisions of Section 14 (1) of the SARFAESI Act. Subsequently proclamation for sale of the property was published. 2. Complaint of the petitioner is that inspite of the fact that the balance outstanding is about Rs.4 lakhs, an amount of Rs.2.5 lakhs offered through demand draft (Ext.P3) has not been accepted by the respondents 2 & 3, and that they were not prepared to keep in abeyance the W.P.(C)No. 34944 of 2009 -2- proceedings of sale. According to the petitioner, he is ready and willing to pay off the entire balance also within a short period. But since the respondents 2 & 3 are not acceding to such requests, this writ petition is filed. 3. Learned standing counsel on instructions submitted that no sale has taken place on 03.12.2009, pursuant to Ext.P2 notice. It is further submitted that if the petitioner is willing to pay off the entire liability, the proceedings can be dropped. 4. Since the petitioner had offered a considerable payment of Rs.2.5 lakhs, through Ext.P3 demand draft, I am of the opinion that indulgence can be shown in the matter of permitting the petitioner to pay off the entire liability within a reasonable time. 5. Under the above circumstances the writ petition is disposed of directing the petitioner to tender original of Ext.P3 demand draft to the 2nd respondent within one week from today, which the 2nd respondent is directed to accept. If payment of the said amount is made as above, further W.P.(C)No. 34944 of 2009 -3- coercive steps for sale of the property shall be kept in abeyance, till 28th February, 2010. The petitioner shall clear the entire balance amount including interest and expenses before the said date either in lump sum or in installments. 6. The petitioner makes a further prayer for a direction to permit the petitioner to reside in the residential house situated within the property which had already taken over possession by the Bank, on payment of the amount of Rs.2,50,000/- (Rupees Two lakhs fifty thousand only). Considering the circumstances the respondents 2 & 3 are agreeable to permit the petitioner to reside therein on payment of the said amount. 7. Accordingly the petitioner shall be permitted to reside in the house situated in the property, without prejudice to possession of the property by the Bank, on payment of the amount of Rs.2.5 lakhs as directed above. 8. It is made clear that on the event of default in payment of the balance amount, the petitioner shall vacate W.P.(C)No. 34944 of 2009 -4- the building without raising any objections of whatsoever nature. It is observed that the residence of the petitioner therein will be absolutely on the basis of the permission and it will not in any manner prejudice the possession secured by the Bank through proceedings under Section 14 (1). 9. It is further made clear that on the event of any default 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 shg/