IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 16TH NOVEMBER 2010 / 25TH KARTHIKA 1932 WP(C).No. 30365 of 2010(U) -------------------------- CMP.3337/2010 of C.J.M.,TRIVANDRUM .................... PETITIONER(S): --------------- JOSEPHER JAIN, AGED 45 YEARS, W/O.RAJAYAN, PALAVILA VEEDU, PANDAKASSALA, CHIRAYINKEEZHU P.O., THIRUVANANTHAPURAM DISTRICT. BY ADV. SRI.V.VENUGOPALAN NAIR RESPONDENT(S): --------------- 1. M/S.STATE BANK OF TRAVANCORE REPRESENTED BY ITS BRANCH MANAGER, CHIRAYINKEEZHU BRANCH, CHIRAYINKEEZHU P.O., THIRUVANANTHAPURAM DISTRICT. 2. THE AUTHORIZED OFFICER/CHIEF MANAGER M/S.STATE BANK OF TRAVANCORE CHIRAYINKEEZHU BRANCH, CHIRAYINKEEZHU P.O., THIRUVANANTHAPURAM DISTRICT. SRI.R.S.KALKURA, SC , SBI. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J ........................................... WP(C).NO.30365 OF 2010 ............................................ DATED THIS THE 16th DAY OF NOVEMBER,2010 JUDGMENT The challenge in this writ petition is against proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act). 2. Consequent to default committed in repayment of a housing loan availed by the petitioner from the respondent bank, proceedings against immovable property which is the secured asset was initiated. Invoking the provisions of Section 14(1) of the Act, respondents have approached the Chief Judicial Magistrate Court, Thiruvananthapuram and a CMP filed in this regard is pending disposal before that Court. According to the petitioner, the default occurred in repayment, only due to unforeseen circumstances, and financial stringencies. It is further stated that in fact the Branch Manager had permitted the petitioner to pay off the defaulted amounts in a phased manner and the petitioner had effected payments, in tune with such terms. But the complaint of the petitioner is that without considering such payments, coercive steps Wpc 30365/2010 2 under the SARFAESI Act is now being pursued. 3. Considering the effective statutory remedy available to the petitioner, against the proceedings initiated under the SARFAESI Act, I am not inclined to entertain this writ petition on the basis of the merits of the contentions raised. However, it is brought to my notice that the housing loan in question was availed only in the year 2006 and there is considerable period left for effecting repayment as per the terms of the loan agreement. Learned counsel for the petitioner submits that the petitioner is ready and willing to regularise the account by paying defaulted amounts on the specific undertaking that the petitioner is relinquishing all challenges against the proceedings and that he is not intending to pursue any statutory remedies. 4. Heard the standing counsel appearing for the respondent bank. It is noticed that as a gesture of indulgence, this court has granted interim stay against dispossession of the property on condition that the petitioner remits a sum of Rs.5,00,000/-. It is reported that such amount has already been paid. Even though interference on merits is not possible, I am of the view that indulgence can be shown in the Wpc 30365/2010 3 matter of permitting the petitioner to regularise the account by payment of defaulted amount within a short period. Accordingly, writ petition is disposed of directing the respondents to keep in abeyance further coercive steps pursuant to notice already issued subject to condition of the petitioner making payment of amounts in default (defaulted instalments along with interest and expenses if any due) in five equal monthly instalments falling due on or before 30.11.2010 and on or before last day of the succeeding months. It is made clear that petitioner shall also make payment of the regular instalments due for the month from November 2010 onwards along with the above said payments. 5. If payment of the defaulted amount is regularised as directed above, respondents will permit the petitioner to continue payment of the future instalments in accordance with the original schedule of repayment. It is made clear that in the event of default in payment of the any of the instalments as stipulated above, respondents will be free to proceed with further steps pursuant to the petition already filed before the Chief Judicial Magistrate Court. It is also made clear that the Wpc 30365/2010 4 above relief is granted subject to the condition that petitioner is precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE lgk