IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 29TH JUNE 2011 / 8TH ASHADHA 1933 WP(C).No. 16863 of 2011(G) ------------------------------------- PETITIONER(S): ----------------------- P.G.SAJEEV, AGED 43 YEARS, S/O. GOPINATHA PILLAI, MANIDEEPAM, PATHIRAPPALLY. P.O., ALAPPUZHA. BY ADV. SRI.V.GOPIKRISHNA SRI.V.V.MITHUN RESPONDENT(S): -------------------------- UNION BANK OF INDIA, 17/1416W, KABEER PLAZA, V.C.S.B.ROAD, ALAPPUZHA, PIN-688010, REPRESENTED BY ITS AUTHORISED OFFICER. BY ADV. SRI.A.S.P.KURUP, SC UBI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: tss W.P.(C) NO.16863/2011 APPENDIX PETITIONER'S EXHIBITS P1:- COPY OF THE NOTICE DTD. 9.9.2010 FROM THE RESPONDENT. P2:- COPY OF THE BALANCE STATEMENT TILL 28.5.2011 OF THE ACCOUNTS OF THE PETITIONER . P3:- COPY OF THE NOTICE DTD. 19.5.2011 FROM THE RESPONDENT. RESPONDENT'S EXHIBITS NIL:- TRUE COPY P.S. TO JUDGE tss C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 16863 of 2011 --------------------------------- Dated this the 29th day of June , 2011 JUDGMENT Consequent to default committed in repayment of a trade loan as well as car loan availed by the petitioner from the respondent Bank, proceedings under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated. Immovable property, which is the secured asset of the loan transaction, was is sought to be proceeded against by resorting to steps contemplated under section 13(4). Contention of the petitioner is that after receipt of the demand notice under section 13(2), the petitioner had effected considerable payments in the loan account and further coercive steps are now being pursued without acceding to the request made by the petitioner to permit to regularise the account by paying the balance amount outstanding as over due. 2. Heard; Standing Counsel appearing for the respondent Bank. It is submitted that the trade loan in question was availed in the year 2007 with a repayment period extending WP(C) .16863/2011 2 to 7 years . But due to default committed the account was declared as 'NPA' in the year 2010. It is stated that the amount over due is around Rs.2.81 lakhs. The car loan was availed in the year 2008 with a repayment period of 5 years and that account was also declared as 'NPA' in the year 2010. It is stated that the over due amount is around Rs.1.81 lakhs. Since the accounts are in chronic default, steps under the SARFAESI Act is being proceeded with, is the submission. 3. Considering the alternative remedy provided under section 17(1), it may not be justified on the part of this court to interdict with the proceedings. However, learned counsel for the petitioner made an appeal to this court to permit to regularise the account on the basis of a specific undertaking that the petitioner is relinquishing all challenges against the proceedings and also relinquishing rights if any available to resort to statutory remedy. On the other hand a prayer is made to permit regularisation considering the repayment period with respect to the loan accounts has not expired. 4. Considering the limited relief sought for, I am of the view that, in view of the relinquishments made and in view of the fact that the repayment period is not expired, the petitioner can WP(C) .16863/2011 3 be permitted to regularise the account. 5. Accordingly, 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 amount remaining overdue in both the loan accounts (defaulted monthly instalments along with interest and expenses, if any due) in 3 (three) equal monthly instalments, falling due on or before 30.7.2011 and on or before the last day of the two succeeding months, along with payment of regular monthly instalments due in both the loan accounts, for the respective months . 6. If payment of the defaulted amount is regularised as directed above, then the respondents shall permit the petitioner to pay the future instalments in accordance with the original schedule of repayment. 7. It is made clear that on the event of default committed in payment of any one of the instalments as stipulated above, or any of the future monthly instalments, respondents will be free to proceed with further steps on the basis of proceedings initiated before the Chief Judicial Magistrate Court and on such event the WP(C) .16863/2011 4 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 pmn/ WP(C) .16863/2011 5