IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 11TH APRIL 2011 / 21ST CHAITHRA 1933 WP(C).No. 10296 of 2011(J) --------------------------------------- PETITIONER(S): ------------------------ RADHA P., W/O.BHASKARAN, PADATTIL HOUSE, PACHATTIRI P.O., MALAPPURAM. BY ADV. SRI.C.V.MANUVILSAN, SRI.P.G.SURESH, SMT.K.VIDYA, SRI.RAJAN VISHNURAJ. RESPONDENT(S): --------------------------- 1. ASSISTANT GENERAL MANAGER, AUTHORISED OFFICER, TIRUR URBAN CO-OPERATIVE BANK LTD.F.1818, TIRUR P.O., MALAPPURAM-676 101. 2. TIRUR URBAN CO-OPERATIVE BANK LTD.F.1818, REPRESENTED BY ITS SECRETARY, TIRUR P.O., MALAPPURAM-676 101. R1 & R2 BY ADV. MR.DEVAPRASANTH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11/04/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs WP(C).No. 10296 of 2011(J) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: COPY OF THE TITLE DEED OF THE PROPERTY SITUATED IN RE. SY. NO.262/2 OF VETTOM VILLAGE. EXT.P2: COPY OF THE URGENT NOTICE DATED 03/12/2010. EXT.P3: COPY OF THE POSSESSION NOTICE DATED 17/03/2011 RESPONDENT'S EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE rs C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 10296 of 2011 --------------------------------- Dated this the 11th day of April, 2011 JUDGMENT Consequent to default committed by the petitioner in repaying loan availed from the 2nd respondent, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated and the immovable property, which is the secured asset, was proceeded against. Ext.P3 is the notice issued by the 1st respondent, the authorised officer, intimating steps taken as contemplated under section 13(4) of the Act. 2. According to the petitioner, the repayment became irregular only due to the acute financial crisis occurred on account of some unexpected peril in the family. It is further stated that the coercive steps were pursued without considering a request made by the petitioner for permitting some time to pay off the entire arrears , in instalments. It is submitted that the loan in question was availed in the year 2008 and as per terms of the loan agreement the repayment period is 60 monthly instalments, which is not expired. WP(C).10296/2011 2 3. Heard; counsel appearing on behalf of respondents. It is stated that the loan account is in chronic default and as per Ext.P3 an amount of Rs.1,13,411/- along with interest due from 15.7.2010 onwards is in default. It is further submitted that, even the amount remaining overdue for payment is around Rs.97,000/-. 4. Considering the effective alternative remedy provided under section 17(1), it may not be justifiable on the part of this court to interdict with the proceedings. However, learned counsel appearing for the petitioner made an appeal to permit regularisation of the account on the basis of an undertaking made to the effect that the petitioner is relinquishing all challenges and that she is not intending to pursue any statutory remedy. Eventhough interference on merits is not warranted, I am of the view that considering the relinquishments made and also considering the fact that the repayment period is not over, indulgence can be shown in permitting regularisation of the account. 5. Accordingly, the writ petition is disposed of directing the petitioner to remit the amount remaining overdue for payment (defaulted monthly instalments along with interest and WP(C).10296/2011 3 expenses, if any due) in 3 (three) equal monthly instalments falling due on or before 15.6.2011 and on or before the 15th day of the succeeding two months, along with payment of the regular monthly instalments due for the respective months. 6. If payment of the defaulted amount is regularised as directed above, then the respondents shall permit the petitioner to continue payment of the future monthly instalments in accordance with the original schedule of repayment. 7. It is made clear that on the event of default in payment of any one of the instalments as stipulated above, or any one of the future monthly instalments, the respondents will be free to proceed with further steps on the basis of proceedings already initiated and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings, either before this court or before any other forum. C.K.ABDUL REHIM,JUDGE pmn/ WP(C).10296/2011 4