IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 7TH SEPTEMBER 2010 / 16TH BHADRA 1932 WP(C).No. 26851 of 2010(F) -------------------------------------- PETITIONERS: --------------------- 1. T.V.BAHULEYAN, S/O.VELAYUDHAN, THURUTHIYIL HOUSE, MANALUR.P.O., THRISSUR DISTRICT. 2. N.V.VALSALA, W/O.T.V.BAHULEYAN, THURUTHIYIL HOUSE, MANALUR.P.O., THRISSUR DISTRICT. BY ADV. SRI.K.PAUL KURIAKOSE. RESPONDENTS: ------------------------ 1. THE AUTHORIZED OFFICER, CHIEF MANAGER (ADVANCES), STATE BANK OF TRAVANCORE, REGION VI, GEETHANJALI BUILDINGS, ROUND EAST, THRISSUR, PIN : 680 001. 2. THE STATE BANK OF TRAVANCORE, OLLUR BRANCH, REP.BY ITS MANAGER, OLLUR.P.O., THRISSUR DISTRICT, PIN – 680 001. 3. THE ASSISTANT GENERAL MANAGER, STATE BANK OF TRAVANCORE, STRESSED ASSETS RESOLUTION CENTRE, GEETHANJALI BUILDINGS, PARAMEKKAVU, THRISSUR – 680 001. R1 & R3 BY ADVS. SRI.T.SETHUMADHAVAN, SRI.PUSHPARAJAN KODOTH, SRI.K.JAYESH MOHANKUMAR. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/09/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C. K. ABDUL REHIM, J. =~=~=~=~=~=~=~=~=~=~=~=~=~=~=~=~= W.P.(C) No. 26851 of 2010 =~=~=~=~=~=~=~=~=~=~=~=~=~=~=~=~= Dated this the 7th day of September, 2010 JUDGMENT Petitioners are husband and wife. They availed housing loan from 2nd respondent in the year 2006. As per terms of the loan agreement, the amount has to be repaid in 120 equal monthly instalments, the period of which will expire only in the year 2016. The 1st petitioner is the proprietor of a firm “M/s. Argus Engineerings”. That firm had also availed a cash credit facility to the tune of Rs.1 lakh from the 2nd respondent, during the year 2005. On an earlier occasion when repayments in the housing loan were defaulted the respondents initiated proceedings under the SARFAESI Act, which was challenged by the petitioners before the Debts Recovery Tribunal in S.A.No.242 of 2009. Finding irregularities in complying with the mandatory procedure, the Tribunal had set aside the proceedings with liberty reserved to the respondent Bank to initiate proceedings after due compliance of the requirements. W.P.(C) No. 26851 of 2010 2 Thereafter, the respondents initiated fresh proceedings under the SARFAESI Act and symbolic possession of the immovable properties, which are secured assets, was taken over by the Bank. According to the petitioners, even though they had approached the respondent Bank with an offer to regularize the outstanding dues, the Bank is not prepared to accept such offer. Hence the writ petition is filed. 2. In a statement filed on behalf of respondents 1 to 3 it is mentioned that an amount of Rs.4,77,597/- with respect to the housing loan and Rs.2,47,975/- in the cash credit account is the total outstanding. It is conceded that if the petitioners are prepared to close the cash credit account, the respondents are willing to permit regularization the housing loan account. 3. Learned counsel for the petitioners conceded that even though various grounds are raised in challenge against the proceedings, the petitioners are ready and willing to relinquish all such contentions and they are prepared to regularize the housing loan account by paying the outstanding arrears within a reasonable time. It is also conceded that the W.P.(C) No. 26851 of 2010 3 petitioners are ready to pay off the liability under the cash credit facility, provided reasonable time is granted for effecting such payment. 4. Considering the fact that the petitioners have not raised any serious objection against the demand issued by the bank under section 13(2) and also considering the fact that the petitioners have not availed the appellate remedy provided under section 17(1) of the SARFAESI Act, I am not inclined to entertain this writ petition on merits. However, considering the request for indulgence made by the petitioners, I am inclined to grant reasonable time for regularizing the housing loan account and also for paying off the liability under the cash credit facility. 5. In the result, the writ petition is disposed of restraining the respondents from proceeding with further steps under the SARFAESI Act, provided the petitioners make payment of the entire amount outstanding in the housing loan account in 4 (four) equal monthly instalments, falling due on or before 30-9-2010 and on or before the last date of the succeeding months. It is made clear that the petitioners shall W.P.(C) No. 26851 of 2010 4 also make payment of the regular instalments falling due, along with the above said instalments. If the housing loan account is regularized as directed above, the respondents shall permits the petitioners to continue payment of future monthly instalments as per the original schedule of payment. 6. With respect to the cash credit account, it is left open to the petitioners to approach appropriate authority in the respondents seeking renewal. However, if the Bank is not inclined to renew the cash credit facility on any terms, the petitioners shall pay the entire outstanding amount within a period of six months from today. 7. On failure to comply with any of the conditions as stipulated above, the respondents will be free to proceed with further steps. It is made clear that on any such event the petitioners will be precluded from raising any further challenge either before this court or before any other forum. C. K. ABDUL REHIM, JUDGE. mn.