IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 6TH OCTOBER 2010 / 14TH ASWINA 1932 WP(C).No. 28708 of 2010(K) --------------------------------- PETITIONER(S): ------------------- JESSY NELSON, W/O.NELSON, AGED 42 YEARS KEVINCOTTAGE, SOORYA NAGAR 154, THILLERY, MUNDAKKAL,KOLLAM. BY ADVS. SRI.K.S.MANU (PUNUKKONNOOR) SRI.P.SREEKUMAR RESPONDENT(S): --------------------- THE QUILON CO-OPERATIVE URBAN BANK LTD NO.960, HEAD OFFICE, Y.M.C.A ROAD, KOLLAM-1, REPRESENTED BY THE AUTHORISED OFFICER GENERAL MANAGER. R1 BY ADVS. SRI.N.DHARMADAN, SENIOR ADVOCATE SMT.D.P.RENU THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs C.K. ABDUL REHIM, J ------------------------------- WP(C) NO. 28708 OF 2010 ------------------------------------- Dated this the 6th day of October, 2010 JUDGMENT Proceedings initiated under the Securitistation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is under challenge in this Writ Petition. Consequent to default committed by the petitioner in repayment of a housing loan availed from the respondent Bank, the immovable property mortgaged, which is the secured asset, was proceeded against. On invoking Section 14 (1) of the Act, the Chief Judicial Magistrate Court has appointed an Advocate Commissioner to take over possession of the property. Ext.P3 is the notice issued by the Advocate Commissioner. 2. Eventhough various grounds are raised against the proceedings, considering the alternate statutory remedies available, I am not inclined to entertain this Writ Petition. However, learned counsel for the 2 WP(C) No. 28708/2010 petitioner pointed out that repayment period of loan is for five years and that he is ready and willing to make payment of defaulted amounts in order to regularise the account. 3. As a gesture of indulgence, this Court directed the petitioner to make payment of a sum of Rs.1 lakh, through interim order issued on 16.09.2010. It is reported that the amount was already paid. 4. Learned counsel appearing for the respondent Bank, on the basis of instructions, submitted that total outstanding in the loan account is more than Rs.5.10 lakhs. It is further submitted that even the defaulted amounts itself will come to around Rs.1 lakh. Since the petitioner has committed consecutive defaults, the respondent Bank is not favouring in permitting regularisation. 5. Having considered the facts and circumstances, I am of the opinion that, eventhough interference on merits is not desirable, some indulgence can be shown in the matter of permitting the petitioner to regularise the account, 3 WP(C) No. 28708/2010 subject to the condition that the petitioner will be precluded from resorting to any statutory remedy in future with respect to the proceedings initiated under the SARFAESI Act. 6. Under the above circumstances, the respondent Bank is directed to keep all further steps of recovery in abeyance, provided the petitioner remits the entire defaulted instalments 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 two succeeding months. It is made clear that along with the above said payments the petitioner should also remit the regular monthly instalments due for the month of October, 2010 onwards. 7. If payments of the defaulted amounts is regularised as directed above, the respondent shall permit the petitioner to continue payment of future instalments in accordance with the original schedule. 4 WP(C) No. 28708/2010 8. It is made clear that on the event of default in payment of any one of the instalments, the respondent will be free to proceed with further steps and on any such event the petitioner will be precluded from raising any subsequent challenge. C.K. ABDUL REHIM JUDGE dnc