IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 16TH MARCH 2011 / 25TH PHALGUNA 1932 WP(C).No. 4791 of 2011(Y) ------------------------- PETITIONER(S): --------------- SMT.ALEENA.V.P., W/O.LATE MOHAMMED, VELUTHEDATH VALAPPIL HOUSE, KOLOLAMBA P.O, MALAPPURAM-679 576. BY ADV. SRI.C.A.ANOOP RESPONDENT(S): --------------- 1. AUTHORISED OFFICER, FEDERAL BANK LTD., REGIONAL OFFICE, MISSION QUARTERS, THRISSUR-680 001. 2. MANAGER, FEDERAL BANK LTD., ALWAYE, KERALA-683 101. ADV. SRI.MOHAN JACOB GEORGE FOR R1 SMT.P.V.PARVATHI FOR R1 SMT.REENA THOMAS FOR R1 SRI.L.RAM MOHAN FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.4791 of 2011-Y ---------------------------------------- Dated this the 16th day of March, 2011. J U D G M E N T Coercive steps taken under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), as evidenced from Ext.P1 notice, is challenged in this writ petition. Consequent to default committed by the petitioner in repaying a loan availed from the respondent Bank, the immovable property, which is the secured asset, was proceeded against. According to the petitioner the loan in question was availed only in the year 2008 and the repayment period will expire only long after. It is contended that the coercive steps are now being pursued without considering the offer made by the petitioner to regularise the account by payment of amounts overdue. 2. Counsel appearing on behalf of the respondent Bank submitted that there was consecutive defaults from the side of the petitioner in paying the monthly instalments. W.P(C) No.4791 of 2011-Y 2 It is submitted that the amount overdue for payment itself is around Rs.5.60 lakhs. 3. Considering the alternative remedy available under the statute, this Court was not inclined to entertain this writ petition. However, dispossession of the petitioner was stayed subject to condition of payment of a sum of Rs.2.5 lakhs. It is submitted by the petitioner that the condition stipulated has already been complied with. 4. Eventhough interference on merits is not justified, I am of the view that the limited prayer made by the petitioner to permit regularisation of the account on the basis of specific undertaking regarding relinquishment of all challenges, can be considered. Since the petitioner is undertaking that she is not pursuing any statutory remedy and that she is relinquishing all challenges and since the repayment period is yet to be expired, I am of the view that if the petitioner makes payment of the amounts in default within a short period, she can be permitted to continue payment of future monthly instalments in accordance with W.P(C) No.4791 of 2011-Y 3 the original schedule of repayment. 5. Therefore, the writ petition is disposed of directing the respondents to keep in abeyance all further steps for actual dispossession and sale of the property, subject to condition of the petitioner remitting the balance outstanding overdue for payment (defaulted instalments along with interest and expenses if any due) in 4 (four) equal monthly instalments, falling due on or before 31.3.2011 and on or before the last day of succeeding months, along with the regular monthly instalments due for the respective months. 6. If payments of defaulted amounts is regularised as directed above, the respondents shall permit the petitioner to continue payment of future monthly instalments in terms of the original schedule of repayment. 7. It is made clear that on the event of default in payment of any one of the instalments, the respondents will be free to proceed with further steps. It is further made clear that the above relief is granted subject to the W.P(C) No.4791 of 2011-Y 4 condition that the petitioner is precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab