IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 1ST JULY 2011 / 10TH ASHADHA 1933 WP(C).No. 17842 of 2011(E) -------------------------------------- PETITIONERS: --------------------- 1. SOUJINSA, AGED 26 YEARS W/O.SHIBU NIYAZ, GREEN ROOF, THAZUTHALA, KOTTIYAM P.O, KOLLAM DISTRICT- 691 571. 2. SHIBU NIYAS, AGED 36 YEARS, S/O.NIYAZ,GREEN ROOF, THAZUTHALA, KOTTIYAM P.O, KOLLAM DISTRICT- 691 571. BY ADV. SMT.S.L.SYLAJA. RESPONDENTS: ------------------------ 1. THE UNION BANK OF INDIA, REPRESENTED BY ITS GENERAL MANAGER, REGIONAL OFFICE, UNION BANK BHAVAN, M.G.ROAD, STATUE, THIRUVANANTHAPURAM- 695 001. 2. THE BRANCH MANAGER, UNION BANK OF INDIA KOTTIYAM BRANCH, KOTTIYAM P.O, KOLLAM DISTRICT, PIN – 691 001. 3. THE AUTHORIZED OFFICER (CHIEF MANAGER UNION BANK OF INDIA, M.G.ROAD, THIRUVANANTHAPURAM DISTRICT- 695 001. R1 TO R3 BY SRI. A.S.P. KURUP, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/07/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.17842/2011-E: APPENDIX PETITIONERS' EXHIBIT: EXT.P.1: COPY OF THE CRL.M.P. FILED BY THE ADVOCATE COMMISSIONER DTD. 28/04/2011. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE. Prv. C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 17842 of 2011 --------------------------------- Dated this the 1st day of July, 2011 JUDGMENT Consequent to default committed by the petitioners in repaying a housing loan availed from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated against the immovable property, which is the secured asset with respect to the loan transaction. According to the petitioners, the loan in question was availed in the year 2010 with a repayment period of 20 years and the coercive steps are now being pursued without considering his request to permit regularisation of the account. 2. Considering the effective alternative remedy provided under section 17(1) it may not be justified on the part of this court to interdict with the proceedings at this stage. However learned counsel appearing for the petitioners submitted that the petitioners are not intending to pursue any statutory remedy and that they are relinquishing all challenges against the proceedings initiated under the SARFAESI Act. The limited WP(C) 17842/2011 2 prayer is to permit regularisation of the account by offering payment of the amounts in default within a short time. 3. Learned Standing Counsel appearing for the respondents submitted that the amounts in default is around Rs.1.63 lakhs and inspite of repeated demands the petitioner has not cared to make payment of the amount. 4. Considering the facts and circumstances as stated above, I am of the view that, eventhough interference on merits is not desirable, indulgence can be shown in permitting regularisation of the account, considering the fact that the petitioner is relinquishing all challenges against the proceedings and that the repayment period is for 20 years. 5. Accordingly, the writ petition is disposed of directing respondents to keep in abeyance dispossession and sale of the immovable property, if not already dispossessed, subject to condition of the petitioner remitting the entire over due which is in default (defaulted monthly instalments along with interest and expenses, if any due) in 2 (two) equal monthly instalments, falling due on or before 31.7 2011 and on or before 31.8.2011, along with payment of monthly instalments due for the month of July, and August, 2011. WP(C) 17842/2011 3 6. If payment of the defaulted amount is regularised as directed above, then the respondents shall permit the petitioners to pay regular instalments in accordance with the original schedule of repayment. 7. It is made clear that on the event of default committed in payment of any one of the instalments as stipulated above, or any of the future monthly instalments, the respondents will be free to proceed with further steps on the basis of proceedings initiated before the Chief Judicial Magistrate Court and on such event the petitioners 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) 17842/2011 4