IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 2ND JUNE 2011 / 12TH JYAISHTA 1933 WP(C).No. 14261 of 2011(G) --------------------------------------- PETITIONER(S): ---------------------- SANTHOSH K.S., S/O.K. SUBBAYYAN CHETTIYAR, AGED 48 YEARS, THUNDIPARAMBIL HOUSE, SREENIVASA MALLAN ROAD, KOCHI - 35. BY ADV. SRI.JOHN JOSEPH (ROY) RESPONDENT(S): ------------------------- 1. SOUTH INDIAN BANK LTD, REPRESENTED BY ITS AUTHORIZED OFFICER, REGIONAL OFFICE, IST FLOOR, MARINE DRIVE, ERNAKULAM, KOCHI - 31. 2. THE MANAGER, SOUTH INDIAN BANK LTD, BANERJI ROAD BRANCH, ELIAS CHAMBERS, BANERJI ROAD, NEAR SARITHA, KOCHI – 35. R1 & R2 BY ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL), SC, SRI.JAJU BABU. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/06/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 14261 of 2011 --------------------------------- Dated this the 2nd day of June, 2011 JUDGMENT Consequent to default committed in repayment of different credit facilities availed by the petitioner from the respondent Bank, proceedings under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated and the immovable property which is the secured asset was sought to be taken over possession. By invoking section 14 (1), the respondent had approached the Chief Judicial Magistrate Court and an Advocate Commissioner was appointed to take over possession of the property. Ext.P4 is the notice issued by the Advocate Commissioner requiring the petitioner to handover possession of the property in question. According to the petitioner, the three distinct credit facilities availed by him are in the nature of term loans, which were to be repaid in monthly instalments extending to various periods. It is contended that the coercive steps of recovery has now been pursued without acceding to the request made by the petitioner to permit WP(C).14261/2011 2 regularisation of those accounts, on the basis of offer made to make payment of the amounts over due within a short period. It is further contended that even after initiating the impugned proceedings the petitioner had remitted considerable amounts. 2.Heard; counsel appearing for the respondent Bank. It is stated that the three distinct loan accounts, which were availed by the petitioner, are in default of payment of monthly instalments. Since the petitioner had defaulted payment of regular monthly instalments, the respondents had resorted to steps under the SARFAESI Act. However it is submitted that the balance overdue for payment in all the three loan accounts will be around Rs.35,000/-. 3. Considering the statutory remedy provided under section 17(1), it may not be proper for this court to interdict with the proceedings . However learned counsel appearing for the petitioner made an appeal for permitting regularisation on the basis of a specific undertaking that the petitioner is relinquishing all challenges raised against the proceedings and that he is not intending to pursue any statutory remedy. 4. Eventhough interference on merits is not warranted, I am of the view that the limited relief sought for can be WP(C).14261/2011 3 considered if the petitioner makes payment of the amounts in default within a short period. 5. Accordingly, the writ petition is disposed of directing respondents to keep in abeyance all further proceedings for dispossession and sale of the property subject to condition of the petitioner remitting the entire amount overdue in all the three loan accounts (defaulted monthly instalments along with interest and expenses, if any due) in 2 (two) equal monthly instalments, on or before 30.6.2011 and on or before 31.7.2011 along with payment of regular monthly instalments due for the respective months. 6. If payment of the defaulted amounts is regularised as directed above, the respondents shall permit the petitioners to pay the future monthly 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, 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 petitioner will be precluded from WP(C).14261/2011 4 raising any subsequent challenge against such proceedings, either before this court or before any other forum. C.K.ABDUL REHIM,JUDGE pmn/