IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 17TH FEBRUARY 2011 / 28TH MAGHA 1932 WP(C).No. 37457 of 2010(F) ---------------------------------- CMP.4389/2009 of C.J.M.,TRIVANDRUM .................... PETITIONER(S): ------------------- P.S.SREEKUMARAN, S/O.P.N.SADASIVAN, RESIDING AT TC 77/1262, PATTAVILAKOM ,PETTA THIRUVANANTHAPURAM 695 024. BY ADV. SRI.A.B.MOHANAKUMAR RESPONDENT(S): --------------------- 1. THE FEDERAL BANK LTD. REGIONAL OFFICE, FEDERAL TOWERS,STATUE THIRUVANANTHAPURAM 695001,REPRESENTED BY ITS AUTHORISED OFFICER (CHIEF MANAGER) 2. THE FEDERAL BANK LTD., POTHENCODE BRANCH,THIRUVANANTHAPURAM, REPRESENTED BY ITS CHIEF MANAGER 695 584. R1 & 2 BY ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.37457 of 2010 ------------------------------------------- Dated this the 17th day of February, 2011 J U D G M E N T ---------------------- Coercive steps initiated for dispossession of the petitioner from the immovable property, which is the secured asset with respect to loan availed by him from the respondent Bank, is the subject matter of challenge in this writ petition. Consequent to default committed in repayment of a housing loan availed by the petitioner, steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. The Chief Judicial Magistrate Court had appointed an Advocate Commissioner in exercise of powers under Section 14(1) to take over possession of the property. 2. According to the petitioner, the coercive steps were initiated without permitting the petitioner to regularise the account by paying the amounts in default. Hence the petitioner seeks interference of this court. 3. When the writ petition came up for consideration, an interim order was issued directing to keep in abeyance steps for dispossession, subject to condition of the petitioner remitting a sum of Rs.2 lakhs. It is reported that the amount stipulated has already been paid. W.P.(C).37457/10 -2- 4. Learned counsel for the respondent Bank submitted that by payment of the said amount the overdue amounts (amount in default) stands almost cleared payment. Under the above circumstances learned counsel for petitioner makes an appeal to this court to permit regularisation of the account on the basis of a specific undertaking that the petitioner is relinquishing all challenges against the proceedings and also rights if any available to invoke statutory remedies. 5. Considering the facts and circumstances as stated above, I am of the view that, even though interference on merits is not justified, the respondents can be directed to regularise the account, especially in view of the fact that the petitioner had already relinquished all challenges and rights to challenge the proceedings. 6. Therefore, writ petition is disposed of directing the petitioner to make payment of the balance remaining overdue for payment if any (defaulted monthly instalments if any) on or before 28.2.2011 along with payment of regular monthly instalment due for the month of February 2011. If payment is made 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. 7. It is made clear that the petitioner will be at liberty to W.P.(C).37457/10 -3- approach the respondents seeking 'One Time Settlement', despite the directions given above and if any such approach is made, the respondent Bank will be at liberty to consider the same and to take appropriate decision. 8. It is made clear that on the event of default in payment of the amount as stipulated above or any one of the monthly instalments, the respondent 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 either before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb