IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 13TH OCTOBER 2010 / 21ST ASWINA 1932 WP(C).No. 30213 of 2010(B) -------------------------- PETITIONER(S): --------------- V.K.SOMAN, S/O.RAMAN MENON, PADMINI NIVAS, KODUNGALLUR P.O., THRISSUR DISTRICT. BY ADV. SRI.G.SREEKUMAR (CHELUR) SRI.K.RAVI (PARIYARATH) RESPONDENT(S): --------------- 1. THE STATE BANK OF INDIA, REP. BY ITS BRANCH MANAGER, LISSIE HOSPITAL BRANCH, ERNAKULAM. 2. THE CHIEF MANAGER (AUTHORIZED OFFICER), STATE BANK OF INDIA, STRESSED ASSETS RESOLUTION CENTRE, ERNAKULAM. STANDING COUNSEL SRI.P.V.SURENDRANATH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J ------------------------------- WP(C) NO. 30213 OF 2010 ------------------------------------- Dated this the 13th day of October, 2010 JUDGMENT Challenge in this Writ Petition is against proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed in repayment of a housing loan, the respondent Bank had proceeded against the immovable property, which is the secured asset. Ext.P3 is the notice issued under Section 13 (2) of the Act. According to the petitioner, repayment period of the loan will be expiring only in the year 2019 and he is seeking direction to permit regularisation. 2. Going by the scheme of the statute, the petitioner has got an effective remedy against the notice issued under Section 13 (2). It is evident that the petitioner has not filed any objections/representations against the notice in question. However learned counsel 2 WP(C) No. 30213/2010 for the respondent Bank submitted that the amount outstanding in arrears (the defaulted amounts) is more than Rs.6.63 lakhs. However it is submitted that if the petitioner remits the defaulted amount immediately, future payment can be permitted in accordance with the original schedule. On the basis of above submission learned counsel for the petitioner submits that he is not intending to pursue any statutory remedies. On the other hand request is made for indulgence of this Court in permitting regularisation of the account. 3. Under the above circumstances, the Writ Petition is disposed of directing the respondent Bank to keep in abeyance all further coercive steps of recovery pursuant to Ext.P3 notice, provided the petitioner remits the entire defaulted amounts along with interest and expenses if any due in 3 (three) equal monthly instalments, falling due on or before 30.10.2010 and on or before the last day of the succeeding months. The petitioner shall also make payment 3 WP(C) No. 30213/2010 of the regular instalments due with respect to the period from October, 2010 onwards, along with the above said payments. If payment of the defaulted amounts is regularised as directed above, the respondents shall permit the petitioner to continue payment of the future monthly instalments in accordance with the original schedule of repayment. 4. It is made clear that on the event of default in payments of amounts as stipulated above, the respondents will be free to proceed with further steps and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K. ABDUL REHIM JUDGE dnc