IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 14TH MARCH 2011 / 23RD PHALGUNA 1932 WP(C).No. 5942 of 2011(P) --------------------------------------- PETITIONER(S): ----------------------- M.G.JAYAN,KARUNNYA BHAVAN, MAVADITHALA, CHENKAL PO,THIRUVANANTHAPURAM. BY ADVS. SRI.B.S.SWATHY KUMAR, SMT.P.A.ANITHA, SMT.S.MEERA, SMT.M.G.AISHWARYA. RESPONDENT(S): --------------------------- 1. THE KERALA STATE CO-OPERATIVE BANK LIMITED., OVER BRIDGE JUNCTION, THIRUVANANTHAPURAM, REPRESENTED BY ITS MANAGING DIRECTOR 695 001. 2. THE AUTHORISED OFFICER/REGIOINAL MANAGER -IN-CHARGE,THE KERALA STATE CO-OPERATIVE BANK LIMITED.,REGIOINAL OFFICE,OVER BRIDGE JUNCTION, THIRUVANANTHAPURAM 695 001. 3. THE MANAGER, THE KERALA STATE CO-OPERATIVE BANK LIMITED, KARAMANA BRANCH, THIRUVANANTHAPURAM 695 121. BY ADV. SRI. NAGARAJ NARAYANAN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.5942 of 2011 ------------------------------------------- Dated this the 14th day of March, 2011 J U D G M E N T ---------------------- This writ petition is filed aggrieved by coercive steps initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and consequent notices issued as per Ext.P2 and Ext.P3, intimating steps taken as contemplated under Section 13(4) of the Act. The proceedings in question was initiated against the immovable property, which is the secured asset with respect to the housing loan availed by the petitioner from the respondent Bank. 2. According to the petitioner, the loan in question was availed in the year 2008 with a repayment period extending to 20 years and the coercive steps are now being pursued without considering his request for permitting regularisation of the account, on the basis of an offer made for payment of the amounts overdue, within a short period. 3. Standing counsel for the respondents, on the basis of instructions, submitted that even the amount overdue for payment will come more to than Rs.1.44 lakhs. Since the loan account is in chronic default, the Bank is not favouring in permitting regularisation. W.P.(C).5942/2011-P -2- 4. Considering the effective alternative remedy provided under the SARFAESI Act, it is not justified on the part of this court to interfere with the proceedings. However, learned counsel for petitioner made an undertaking that the petitioner is not pursuing any statutory remedy and that he is relinquishing all challenges raised against the proceedings. Limited prayer is made to permit regularisation of the account, offering payment of the amounts in default, within a reasonable time. 5. Considering the guidelines issued by the Reserve Bank of India, which is having statutory force, I am of the opinion that, even though interference on merits is not proper, the petitioner can be permitted to regulairse the account by payment of the amounts in default within a short time. 6. Accordingly the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps initiated under the SARFAESI Act pursuant to Ext.P2 and P3 notices, subject to condition of the petitioner remitting the amounts overdue for payment (defaulted monthly instalments along with interest and expenses if any due) in 3 (three) equal monthly instalments, falling due on or before 31.3.2011 and on or before the last day of the succeeding months, along with payment of regular monthly instalments due for the respective months. W.P.(C).5942/2011-P -3- 7. If payment of defaulted amounts are regularised as directed above, then the respondents 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 above or any future monthly instalments, the respondents will be at liberty to proceed with further steps on the basis of the notices already issued and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE. okb