IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 6TH OCTOBER 2010 / 14TH ASWINA 1932 WP(C).No. 26931 of 2010(N) -------------------------- PETITIONER(S): --------------- NOUSHAD E.H.AGED 42 YEARS, S/O. LATE HAMSA, ERACHAMVEETTIL HOUSE, NEAR CHALAKULAM JUMA MASJID, P.O. VALAPPAD BEACH, TRICHUR DIST. BY ADV. SRI.P.V.GEORGE(PUTHIYIDAM) RESPONDENT(S): --------------- 1. THE FEDERAL BANK LTD., REP.BY SENIOR MANAGER, TRIPRAYAR BRANCH, TRIPRAYAR P.O., TRIPRAYAR. 2. AUTHORISED OFFICER AND CHIEF MANAGER, THE FEDERAL BANK LTD. REGIONAL OFFICE, TRICHUR, TRICHUR P.O. 3. UNION OF INDIA, REPRESENTED BY SECRETARY TO GOVERNMENT OF INDIA, MINISTRY OF FINANCE, NEW DELHI. ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL) FOR R1 & 2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 26931 of 2010(N) : 2 : PETITIONER'S EXHIBITS: EXT.P1 : COPY OF THE NOTICE DTD.12.11.2009 EXT.P2 : COPY OF THE NOTICE DTD.27.8.2010 RESPONDENT'S EXHIBITS : NIL //TRUE COPY// P.A TO JUDGE C.K.ABDUL REHIM, J --------------------------- W.P(C) No.26931 of 2010-N ---------------------------- Dated this the 6th day of October, 2010. J U D G M E N T Petitioner along with his wife had availed a housing loan from the first respondent Bank to the tune of Rs.25,00,000/-, during the year 2008. As per terms of the loan, repayment has to be effected at monthly rate of Rs.33,973/-. The repayment period stipulated is till the year 2023. But, consequent to default committed in effecting regular repayment of the monthly instalments, proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated by respondents 1 and 2. The Chief Judicial Magistrate Court was approached invoking provisions under Section 14(1). The Advocate Commissioner appointed by that Court had issued Ext.P2 notice requesting the petitioner to handover possession of the property. 2. According to the petitioner, if the property in question, which is the residential house, is taken over possession, the family of the petitioner will be thrown to street and they will be put to W.P(C) No.26931 of 2010-N 2 severe prejudices. 3. It is noticed that the petitioner has not chosen to avail any of the remedy provided under the SARFAESI Act for challenging the proceedings initiated. I find no valid reason for interfering in any manner with the proceedings based on any of the contentions raised. However, learned counsel for the petitioner submitted that the petitioner is not intending to invoke any statutory remedy. On the other hand he is prepared to regularise the account by paying the defaulted instalments within a short period, and that he is relinquishing all challenges. 4. Learned counsel appearing for the respondent Bank submitted that, since the last more than one year no payment was effected and the defaulted amounts itself will come around Rs.6,00,000/-. 5. Eventhough interference on merits is not at all warranted, I am of the opinion that considering the fact that the repayment period is upto the year 2023 and since the petitioner had relinquished all challenges, the petitioner can be permitted to regularise the account. Accordingly, the writ petition is disposed of directing respondents 1 and 2 to keep in abeyance all further coercive steps for dispossession and sale of the property, provided the petitioner remits the entire defaulted amount overdue for W.P(C) No.26931 of 2010-N 3 payment, along with interest and expenses if any due, in 3(three) equal monthly instalments falling due on or before 30.10.2010 and on or before the last day of succeeding months. It is made clear that the petitioner shall also make payment of the regular instalments falling due from October 2010 onwards, along with the above said payments. 6. If payment of defaulted amounts is regularised as directed above, then the respondents 1 and 2 shall permit the petitioner to continue payment of future instalments in accordance with the original schedule of repayment. 7. It is made clear that on the event of default in payment of any of the instalments, the respondents will be free to proceed with further steps pursuant to Ext.P2 notice. It is further 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. 8. Needless to say that for the purpose of permitting regularisation, the bank will furnish statement of accounts, if any requested by the petitioner. C.K.ABDUL REHIM JUDGE ab