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. 21530 of 2010 (M) -------------------------- PETITIONER: ------------------- SELVAM BHASKAR, S/O.BHASKAR V.R., VIKRANCHERY HOUSE, VALAPPAD P.O., THRISSUR DISTRICT. BY ADV. SRI.V.BINOY RAM RESPONDENTS: --------------------- 1. THE FEDERAL BANK LTD., THRIPRAYAR BRANCH, THRISSUR DISTRICT, REP.BY THE MANAGER, THRIPRAYAR BRANCH, THRISSUR DISTRICT.. 2. THE CHIEF MANAGER, THE FEDERAL BANK LTD, REGIONAL OFFICE, MISSION QUARTERS, THRISSUR, PIN-680 001. 3. SMT.ALLI BHASKAR, M/O.LATE THAMBI BHASKAR, VIKRANCHERY HOUSE, VALAPPAD P.O., THRISSUR DISTRICT. R1 & R2 BY ADVS. SRI.GEORGE VARGHESE (MANACHIRACKEL) SRI.P.R.MILTON R3 BY ADV. SMT.MARY BEENA JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK C.K.ABDUL REHIM, J ------------------------------------ W.P(C) No.21530 of 2010-M --------------------------------------- Dated this the 13th day of October, 2010. J U D G M E N T Deceased brother of the petitioner, Mr.Thambi Bhaskar had availed a vehicle loan from respondents 1 and 2, during the year 2008. The petitioner as well as the 3rd respondent, who is his mother, were guarantors for the loan transaction. Immovable property belonging to the petitioner and his mother was mortgaged for securing the loan. The borrower, Mr.Thambi Bhaskar died on 30.8.2009. It is stated that, the loan account became defaulted and proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated at the behest of respondents 1 and 2. Ext.P3 is the notice of demand issued under Section 13(2) of the Act. A sum of Rs.2,37,221/- as on 7.1.2010 along with future interest was demanded. 2. According to the petitioner, he approached the Bank seeking transfer of the loan into his name making an W.P(C) No.21530 of 2010-M 2 offer to continue payments of future instalments. Through Ext.P5, the request was declined by the respondents 1 and 2. With respect to the request of the petitioner for issuing a statement of accounts, the petitioner was informed that the Bank is ready to give a copy of the loan account, as and when approached. Under such circumstances this writ petition is filed seeking directions for transfer of the loan account. 3. It is admitted that the loan was availed by the deceased brother of the petitioner. It is also the admitted fact that the loan account is in default and steps under the SARFAESI Act has already been initiated against the secured assets. The request for transfer of the loan into the name of the petitioner is a matter which is purely coming within the policies and decisions of the Bank. The petitioner is not entitled to claim such transfer as a matter of right. No valid contentions was seen raised against proceedings initiated under the SARFAESI Act. Further it is noticed that, under the provisions of the statute, the petitioner has W.P(C) No.21530 of 2010-M 3 got an effective remedy to approach the Bank by submitting objections/representations against the notice under Section 13(2). Having not chosen to avail such remedy, I am of the opinion that the writ petition could not be entertained on merits. 4. However, having confronted with the above situations, learned counsel for the petitioner submitted that he is not intending to pursue any statutory remedies by way of challenge against the proceedings initiated under the SARFAESI Act. On the other hand he seeks indulgence in permitting payment of the entire balance within a reasonable time in instalments, in order to save the immovable property. Eventhough interference on merits is not at all warranted, I am of the opinion that indulgence can be shown in permitting the petitioner to pay off the entire liability within a reasonable time. 5. Accordingly the writ petition is disposed of directing respondents 1 and 2 to keep all further recovery steps pursuant to Exts.P3 notice in abeyance, provided the W.P(C) No.21530 of 2010-M 4 petitioner remits the entire balance outstanding along with interest accruing in future, in 5 (five) equal monthly instalments falling due on or before 15.11.2010 and on or before the 15th day of the succeeding months. 6. It is made clear that on the event of default in payment of any of the instalments, the first and second respondents will be free to proceed with further steps pursuant to the notice already issued. It is further made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against such proceedings. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// P.A to Judge ab W.P(C) No.21530 of 2010-M 5