IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 13TH SEPTEMBER 2010 / 22ND BHADRA 1932 WP(C).No. 9610 of 2010(A) ------------------------ PETITIONER : ------------------ T.MAHAMOOD, AGED 45 YEARS, S/O. ABDULLAHKUTTY, THEKKEKAYIL HOUSE, PO.EDAKKARA,THRISSUR DISTRICT. BY ADVS. SRI.RAJIT SRI.RANJIT BABU RESPONDENT(S): --------------- 1. THE AUTHORISED OFFICER, CATHOLIC SYRIAN BANK, ZONAL OFFICE,THRISSUR. 2. CATHOLIC SYRIAN BANK, EAST FORT BRANCH, THRISSUR DISTRICT, REPRESNTED BY THE BRANCH MANAGER. R1 & R2 BY ADV. SRI.C.A.JOY, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Mn C.K.ABDUL REHIM, J. -------------------------------------- W.P.(C).No.9610 of 2010 -------------------------------------- Dated this the 13th day of September, 2010 J U D G M E N T ---------------------- Petitioner availed a Housing Loan from the 2nd respondent Bank to the tune of Rs.25,00,000/- during the year 2004. Immovable property having an extent of 45 cents was mortgaged in order to secure the loan. Consequent to default committed in regular repayments, the respondents initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Ext.P1 is the notice issued under Section 13(2) of the Act. According to the petitioner, he had remitted various amounts even after receipt of Ext.P1 notice. It is submitted that the repayment period stipulated is 20 years. Therefore the petitioner is seeking direction to permit regularisation of the loan account by remitting the amounts outstanding overdue. 2. In the counter affidavit filed by the respondents it is contended that the loan account is in chronic default and it was classified as 'NPA' and SARFAESI proceedings was initiated. It is further stated that action for taking over possession of property is under contemplation. Learned W.P.(C).9610/10-A -2- counsel for the respondents submitted that the offer made by the petitioner for regularising the loan account cannot be accepted, since the petitioner had effected a clandestine transfer of the property to a third person, despite the mortgage created. 3. During pendency of this writ petition an interim order was issued against coercive steps, on condition of the petitioner remitting a sum of Rs.5,00,000/-, vide interim order dt. 22.3.2010. Subsequently the interim order was extended on 20.5.2010 directing further payment of Rs.2.5 lakhs. It is conceded that all such stipulations have already been complied with by the petitioner. Learned Standing Counsel on the basis of instructions submitted that the total arrears now outstanding after deducting all payments will be around to Rs.20 lakhs. 4. Having considered the contentions, I am not impressed to interfere with the SARFAESI proceedings, especially in view of the statutory remedies available to the petitioner by way of appeal under Section 17(1) of the Act. However, learned counsel for the petitioner submitted that the petitioner is ready and willing to pay off the entire liability within a period of one year, if he is permitted to pay the amounts in installments. Learned Standing Counsel is not favouring in granting any such lengthy period since the loan account was in chronic default and since the petitioner had effected a clandestine transfer of the property, eventhough such transfer is W.P.(C).9610/10-A -3- not valid as far as mortgage is concerned. 5. Having regard to facts and circumstances of the case, I am of the opinion that eventhough interference on merits is not at all desirable, indulgence can be shown in permitting the petitioner to pay off the entire liability in installments. 6. Accordingly the writ petition is disposed of directing the respondents to keep in abeyance further coercive steps under the SARFAESI Act, provided the petitioner remits the entire balance amount along with future interest and expenses if any due, in eight (8) equal monthly installments falling due on or before 15.10.2010 and on or before the 15th day of the succeeding months. 7. It is made clear that on the event of the petitioner making default in payment of any of the installments, the respondents will be at liberty to proceed with further steps of recovery pursuant to the notices already issued. It is also made clear that the relief granted above is subject to the condition that the petitioner is precluded from raising any challenge against such proceedings in future, either by approaching this court or any other Forum. C.K.ABDUL REHIM, JUDGE. okb