IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 8TH MARCH 2011 / 17TH PHALGUNA 1932 WP(C).No. 6891 of 2011() ------------------------ PETITIONER(S): --------------- KRISHNAMOORTHY,S/O.MAZRUTHAMUTHU, KRISHNA NIVAS,UDHUVAKKADU,PALLATHERI.P.O, PALAKKAD-678007. BY ADV. SRI.JACOB SEBASTIAN RESPONDENT(S): --------------- CENTRAL BANK OF INDIA REPRESENTED BY THE AUTHORIZED OFFICER,REGIONAL OFFICE,METRO PALACE, OPP.TOWN RAILWAY STATION,ERNAKULAM - 682 018. BY SRI.DEVAN RAMACHANDRAN - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.6891 of 2011-J ---------------------------------------- Dated this the 8th day of March, 2011. J U D G M E N T The proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is under challenge in this writ petition. The petitioner had availed a housing loan to the tune of Rs.12 lakhs and a purchase loan (cent-buy loan) to the tune of Rs.60,000/- from the respondent. According to the petitioner the repayment period of the housing loan will expire only in the year 2017. Consequent to default committed in repayment of instalments, the Bank initiated proceedings against the immovable property, which is the secured asset. Ext.P1 is the demand notice issued under Section 13(2) of the Act. According to the petitioner, eventhough no further notice was served, the respondent revealed that coercive steps were already taken by approaching the Chief Judicial Magistrate Court invoking Section 14(1). It is contended W.P(C) No.6891 of 2011-J 2 that the steps under the SARFAESI Act are now being pursued without considering approaches made by the petitioner seeking one time settlement of the purchase loan as well as regularisation of housing loan. 2. Learned counsel appearing for the respondnet Bank, on the basis of instructions, submitted that proceedings initiated under Section 14(1) is pending disposal before the Chief Judicial Magistrate Court, Palakkad. It is further stated that both the loan accounts are in chronic default and the total outstanding will be more than Rs.16.18 lakhs. It is also submitted that, even the amounts overdue for payment in the housing loan itself is more than Rs.3.40 lakhs. 3. Considering the statutory remedy available under Section 17(1) of the SARFAESI Act this Court may not be justified in interdicting with the proceedings. However, learned counsel for the petitioner made an appeal to this Court to permit regularisation of the housing loan on the premise that the repayment period will expire only in the W.P(C) No.6891 of 2011-J 3 year 2017. He undertook that the petitioner is not intending to pursue any statutory remedy and that he is relinquishing challenges against the proceedings. On behalf of the petitioner it is also undertaken that the amount due under the purchase loan will be paid within a short time. 4. Eventhough interference on merits is not proper, I am of the view that the limited relief now sought for can be permitted. 5. Therefore, the writ petition is disposed of directing the respondent to keep in abeyance all further steps for dispossession and sale of the property, subject to condition of the petitioner remitting the entire amount outstanding in the purchase loan account (cent-buy loan) on or before 31.3.2011. The petitioner will further make payment of the amount overdue for payment in the housing loan account (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 two succeeding months along with W.P(C) No.6891 of 2011-J 4 payment of regular monthly instalments due for the respective months. 6. If payment as above is made without any default, the respondent shall permit the petitioner continue payment of future monthly instalments in the housing loan account in accordance with the original schedule of repayment. 7. It is made clear that on the event of default in payment of any one of the instalments as stipulated or any of the future monthly instalments, the respondent will be free to proceed with further steps. It is made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab