IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM TUESDAY, THE 15TH DAY OF MARCH 2011/24TH PHALGHUNA WP(C).No. 4706 of 2011 (K) -------------------------- PETITIONER: ------------- MONICHEN.T.O., S/O.BABY, AGED 28 YEARS, ILLICKALCHIRA HOUSE, C.M.C.26 CHERTHALA, ALAPPUZHA DISTRICT. BY ADV. SRI.K.C.SUDHEER RESPONDENTS: -------------- 1. INDUS IND BANK, ERNAKULAM, REP.BY ITS MANAGER. 682 024. 2. INDUS IND BANK, C.S.N.BUILDING, S.D.V.H.S., DISTRICT COURT ROAD, ALAPPUZHA-688 013 REP.BY ITS BRANCH MANAGER. 3. AUTHORISED OFFICER, INDUS IND BANK, ERNAKULAM-682 024. BY SRI.P.G.PARAMESWARA PANICKER (SR.) SRI.P.GOPAL R1 TO 3 BY SRI.K.RAJESH (AROOR) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15-03-2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 4706 of 2011 (K) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : COPY OF REPAYMENT SCHEDULE OF THE VEHICLE LOAN EXT.P2: COPY OF THE STATEMENT OF ACCOUNT SHOWING THE CHEQUE PAYMENT EXT.P3 SERIES: COPY OF THE PAYMENT RECEIPT ISSUED BY THE 2ND RESPONDENT WHICH ARE 26 IN NOS. EXT.P4: COPY OF THE NOTICE DTD.7.1.2011 ISSUED BY THE 1ST RESPONDENT. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A TO JUDGE ab C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.4706 of 2011-K ---------------------------------------- Dated this the 15th day of March, 2011. J U D G M E N T The petitioner availed a vehicle loan to the tune of Rs.5,25,000/- during the year 2008, from the respondent Bank. According to the petitioner he was regularly paying all the monthly instalments due in the loan account. Ext.P2 is a copy of the statement of accounts as well as Ext.P3 series are the receipts, evidencing payment of various instalments. According to the petitioner due to unforeseen financial stringencies he could not make payment of two monthly instalments. But, without acceding to the request made by the petitioner for granting reasonable time to pay off the entire arrears, the vehicle in question was taken over possession by invoking provisions contained in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It is stated that the repayment period will end only in the year 2012 and the petitioner is eking his livelihood by plying the vehicle in question. Therefore, he seeks indulgence of this Court in directing the respondents to return the vehicle on W.P(C) No.4706 of 2011-K : 2 : the basis of an undertaking that he will clear payment of the entire amount overdue (defaulted amounts). 2. Learned standing counsel appearing for the respondent Bank, on the basis of the instructions, submitted that there is a total outstanding of more than `2.19 lakhs. It is further stated that the amount overdue for payment itself will come around `62,400/-. However, it is conceded that the petitioner was not a chronic defaulter. On the other hand he had remitted considerable instalments. On the basis of the contentions that there is no security other than hypothication of the vehicle, the respondents insists that the vehicle can be returned only if the petitioner produces sufficient security or makes payment of considerable amounts out of the total balance due. 3. Considering the statutory remedy provided against the proceedings under the SARFAESI Act, this Court may not be justified in interdicting with the proceedings initiated. However, learned counsel for the petitioner made an appeal that the petitioner is ready and willing to make payment of the entire amount overdue for payment, immediately. He further undertakes that the petitioner is relinquishing all challenges and W.P(C) No.4706 of 2011-K : 3 : that he is not intending to pursue any statutory remedy. 4. Considering the fact that the loan in question was sanctioned only on the security of the vehicle and also considering the fact that the repayment period will expire only in the year 2012, I am of the view that the respondents are at an obligation to reclassify the debt as a performing asset, as and when the petitioner clears payment of the amounts in default. Considering the further fact that the petitioner is relinquishing all challenges, I am of the view that interest of justice will be served, if a direction is issued to the respondent Bank to give back possession of the vehicle to the petitioner, subject to condition of the petitioner remitting the entire amounts in default, along with interest and expenses, if any due. 5. Accordingly, the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps and to give back possession of the vehicle bearing registration No.KL 32 A-1769 to the petitioner, on the petitioner remitting the entire amounts overdue for payment (defaulted instalments along with interest and expenses, if any due). If the amounts in default is remitted and the vehicle is given possession, the respondent shall permit the petitioner to continue payment of W.P(C) No.4706 of 2011-K : 4 : the future monthly instalments in accordance with the original schedule of repayment. 6. It is made clear that on the event of default in payment of any one of the future monthly instalments, the respondents will be free to take back possession of the vehicle or to proceed in any other manner in accordance with the provisions of the SARFAESI Act or under any other proceedings permissible under law. 7. It is further made clear that on such event the petitioner will not be entitled to raise any challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab