IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 6TH NOVEMBER 2009 / 15TH KARTHIKA 1931 WP(C).No. 26322 of 2009(I) -------------------------- PETITIONER(S): --------------- SATHEESH K.R, KRISHNA BHAVAN, MANIYAN, MUKKU, ARAKANOOR PO, AYOOR, KOLLAM. BY ADVS. SRI.BECHU KURIAN THOMAS SRI.ROSHEN.D.ALEXANDER RESPONDENT(S): --------------- 1. HDFC BANK LTD, 1ST FLOOR, S.L.PLAZA,PALARIVATTOM, COCHIN-682 025.REP.BY THE AUTHORIZED OFFICER. 2. HDFC BANK LTD, KOLLAM BRANCH, KOLLAM. REP.BY ITS BRANCH MANAGER. BY ADV. SRI. MATHEW GEORGE VADAKKEL, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 26322 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 6th day of November, 2009 J U D G M E N T 1. Challenge in this writ petition is against proceedings initiated by the respondents under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The petitioner had availed a loan from the respondent Bank to the tune of Rs.55 lakhs during the year 2007. According to the petitioner due to failure in business activities, regular repayments in the loan account could not be continued. Consequently the respondents initiated proceedings under the SARFAESI Act and Exts.P1 & P2 notices were issued. Challenging those proceedings the petitioner had approached the Debts Recovery Tribunal and an interim stay was granted on condition of deposit of Rs.3 lakhs on or before 10.08.2009. Since the petitioner could not remit the amount, an extension application was W.P.(C)No. 26322 of 2009 -2- filed, and extension was granted. Still the petitioner could not effect payment of the said amount within the time stipulated by the Tribunal. Eventhough he had tendered the amount after the time stipulated, the Bank had refused to accept it. Thereafter the respondent proceeded with further steps and approached the Chief Judicial Magistrate invoking Section 14 (1). An Advocate Commissioner was appointed to take over possession of the secured assets. At this stage the petitioner had filed this writ petition seeking direction for permitting him to pay off the defaulted installments in order to regularise the account. 2. This court through interim orders dated 18.09.09 and 25.09.09 directed the petitioner to make payment of Rs.3 lakhs and Rs.5 lakhs respectively. It is submitted by both sides that the interim orders had already been complied with and a total amount of Rs.8 lakhs was paid. The learned counsel for the respondents submitted that the amount pertaining to the defaulted installments along with over due interest and expenses at present outstanding, will W.P.(C)No. 26322 of 2009 -3- be around Rs.4 lakhs. Learned counsel for the petitioner submits that he is ready and willing to pay whatever amount due for regularising the loan account within a short period. 3. Under the above circumstances, I am of the opinion that some indulgence can be shown in the matter for permitting the petitioner to regularise the account by paying defaulted amounts and in permitting the petitioner to continue repayment in the loan account as per the original schedule. 4. Accordingly the writ petition is disposed of directing the petitioner to make payment of the amount pertaining to the defaulted installments along with over due interest and expenses if any liable, in four (4) equal monthly installments falling due on or before 15th December, 2009 and on or before the 15th day of succeeding three (3) months. The petitioner shall make payment of the regular installments due from December 2009 onwards along with the above payments. If the petitioner makes payment of the amounts as insisted above, the respondent shall permit him W.P.(C)No. 26322 of 2009 -4- to continue repayment in the loan account with respect to the future installments as per the original schedule of repayment. 5. It is made clear that on the event of failure to pay any of the installments as stipulated as above, the respondents will be free to proceed with further steps pursuant to the order already issued by the Chief Judicial Magistrate Court, and on any such event the petitioner will be precluded from raising any further challenge against the proceeding initiated under the SARFAESI Act, before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/