IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 31ST JANUARY 2011 / 11TH MAGHA 1932 WP(C).No. 847 of 2011(E) ----------------------------------- PETITIONER: ------------------- ABDUL NAZEER P.A.,AGED 42 YEARS, S/O.ASSAINAR, VILLA NO.16,MADAKKATHARA, THRISSUR. BY ADV. SRI.P.V.GEORGE (PUTHIYIDAM). RESPONDENTS: ------------------------ 1. HOUSING DEVELOPMENT FINANCE CORPORATION LTD, REPRESENTED BY BRANCH MANAGER, PUMA BUILDING, M.G. ROAD, THRISSUR – 682 015. 2. THE AUTHORIZED OFFICER, HOUSING DEVELOPMENT FINANCE CORPORATION LTD, H.D.F.C.HOUSE,RAVIPURAM JUNCTION, M.G.ROAD, KOCHI-682 015. R1 & R2 BY SRI.K.K.CHANDRAN PILLAI, SENIOR ADVOCATE, ADVS. SRI.A.S.SAJUSH PAUL, SRI.THOMAS JAMES MUNDACKAL, SRI.BOBBY THOMAS, SRI.M.L.JISHNU. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31/01/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.847 of 2011 ------------------------------------------- Dated this the 31st day of January, 2011 J U D G M E N T ---------------------- Challenge is against proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed by the petitioner in repaying a housing loan availed from the respondent Bank, the immovable property, which is the secured asset, was proceeded against. Invoking Section 14(1) the respondent had approached the Chief Judicial Magistrate Court and the Advocate Commissioner appointed by that court had issued Ext.P3 notice requiring the petitioner to hand over possession of the property in question. 2. According to the petitioner, the coercive steps are now being pursued without considering Ext.P2 request made for permitting regularisation. Hence the petitioner seeks interference of this court. 3. Heard; Standing Counsel appearing for the respondent Bank. It is submitted that the loan in question was availed in the year 2007 with a repayment period of 10 years. But the petitioner made consecutive defaults. It is submitted W.P.(C).847/11 -2- that even the amount in default will come around Rs.9.20 lakhs, along with interest and expenses. 4. Considering the fact that the petitioner has not chosen to avail remedies provided under the statute at any stage when steps were initiated under Section 13(2) and 13(4), it is not justified for this court to interdict with the proceedings at present. 5. However, learned counsel for petitioner made an appeal to this court to permit regularisation of the account on the premise that he is relinquishing all challenges against the proceedings and that he is not intending to pursue any statutory remedy. Considering the limited prayer, I am of the view that, eventhough interference on merits is not desirable, the petitioner can be permitted to regularise the account, especially in view of the fact that the repayment period of the loan is for 10 years. 6. Accordingly the respondents are directed to restrain from dispossessing and conducting sale of the property subject to condition of the petitioner remitting the amounts in default (defaulted monthly instalments along with interest and expenses if any due) in 4 (four) equal monthly instalments, falling due on or before 28.2.2011 and on or before the last day of the succeeding months. The petitioner shall also make payment of W.P.(C).847/11 -3- the regular monthly instalments due for the respective months, along with the above said payments. 7. If payment of the defaulted amounts is regularised as directed above, the respondent Bank shall permit the petitioner to continue payment of future monthly instalments in accordance with the original schedule of repayment. 8. It is made clear that on the event of default in payment of any one of the instalments as stipulated or any of the future instalments, the respondents will be at liberty to proceed with further steps and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE. okb