IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 3RD FEBRUARY 2011 / 14TH MAGHA 1932 WP(C).No. 405 of 2011(A) ------------------------ PETITIONERS: -------------------- 1. SHOUKATH P., S/O. MOIDU, PAREMMAL VEEDU, P.O.THALIYIL, KAYAKODI, KOZHIKODE DISTRICT - 673508. 2. ASMA S.K. W/O. SHOUKATH, MANATTIL THAZHE VEEDU, P.O.THALIYIL KAYAKODI, KOZHIKODE DISTRICT - 673508. BY ADV. SRI.U.K.DEVIDAS RESPONDENTS: ---------------------- 1. THE SENIOR MANAGER (AUTHORIZED OFFICER) THE KOZHIKODE DISTRICT CO-OPERATIVE BANK LTD., KALLAI ROAD, CALICUT - 673002. 2. THE KOZHIKODE DISTRICT CO-OPERATIVE BANK LTD. THOTTILPALAM BRANCH REPRESENTED BY ITS MANAGER, THOTTILPALAM, VADAKARA, KOZHIKODE DISTRICT. ADV. SRI.P.V.KUNHIKRISHNAN FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. = = = = = = = = = = = = = WP(C).No.405 of 2011-A. = = = = = = = = = = = = = Dated this the 3rd February, 2011. J U D G M E N T Proceedings initiated under the Securitisation 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 petitioners in repaying loans availed from the respondent Bank, the immovable property, which is the secured asset, was proceeded against. Exts.P5 and P6 are the notices issued intimating about taking over possession of the properties, as contemplated under Section 13(4) of the Act. It is stated that the coercive steps are now being pursued without properly crediting all the payments effected by the petitioners as evidenced from Exts.P1 to P4. It is also stated that the Bank is taking steps for dispossession of the petitioners without considering their WP(C).No.405 of 2011-A. -: 2 :- request for permitting regularisation of the account. 2. Heard; standing counsel appearing for the respondent Bank. It is contended that the amount remitted through Exts.P1 to P4 is at present kept in the savings bank account of the petitioners, since the proceedings under the SARFAESI Act was being pursued. It is further stated that, both the loan accounts were in chronic default and the amount outstanding overdue for payment is to the tune of more than Rs.5.80 lakhs, in both the accounts put together. Since the loan account in gross default, the respondent Bank is proceeding with recovery steps, is the submission. 3. Considering the fact that, the petitioners have not chosen to avail the effective alternative remedy, it is not justified on the part of this Court to interfere with. However, learned counsel for the petitioners made an undertaking that the petitioners will regularise the account on payment of the balance amount overdue for payment after crediting payments already effected within a short WP(C).No.405 of 2011-A. -: 3 :- period. It is also submitted that the petitioners are relinquishing all the challenges against the proceedings and also rights if any to invoke the statutory remedy. Eventhough interference on merit is not justified, I am of the view that the petitioners can be permitted to regularise the amount within a short period. 4. Under the above circumstances the writ petition is disposed of directing the respondents to credit the amounts covered under Exts.P1 to P4 against the loan accounts, with effect from the appropriate dates of deposit. The petitioners will remit the balance amount in default (defaulted instalments along with interest and expenses if any) in two equal monthly instalments falling due on or before 28.2.2011 and on or before 31.3.2011, along with the regular instalments due with respect to the respective months. 5. If payment of defaulted amounts are made as directed above, the respondent shall permit the petitioner WP(C).No.405 of 2011-A. -: 4 :- to continue payment of future monthly instalments in accordance with the original schedule of repayment. 6. If there is any default in payment of any one of the instalments, the respondents will be at liberty to proceed with further steps pursuant to the notice already issued. It is made clear that the above relief is granted subject to condition that the petitioners are precluded from raising any subsequent challenges against the proceedings. C.K.ABDUL REHIM, (Judge) Kvs/-