IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 17TH NOVEMBER 2009 / 26TH KARTHIKA 1931 WP(C).No. 30507 of 2009(G) -------------------------- CMP.280/2009 of C.J.M.,KOZHIKODE .................... PETITIONER(S): --------------- 1. MR.SHAFI.S.M UMMATHADATHIL HOUSE, NIT CAMPUS PO, CHATHAMANGALAM KOZHIKODE. 2. MRS. VAHEEDA P UMMATHADATHIL HOUSE, NIT CAMPUS PO, CHATHAMANGALAM KOZHIKODE. BY ADV. SRI.T.B.SHAJIMON SMT.GOVINDU P.RENUKADEVI RESPONDENT(S): --------------- HOUSING DEVELOPMENT FINANCE CORPORATION LTD, REP BY ITS AUTHORIZED OFFICER SRI BABY JOSEPH S/O.JOSEPH, HDFC HOUSE RAVIPURAM JUNCTION, M.G.ROAD,KOCHI 682 015. BY SRI. K.K. CHANDRAN PILLAI, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: jma C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 30507 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 17th day of November, 2009 J U D G M E N T 1. Challenge in this writ petition is against proceedings initiated under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) by the respondent, with respect to a loan account availed by the petitioners. An amount of Rs.5 lakhs was availed during the year 2007 for the purpose of construction of a residential building. Since there was no regular repayments the loan account was categorized as NPA in the year 2007 itself. The respondent had proceeded with steps under Section 14 (1) and the Chief Judicial Magistrate has already appointed an Advocate Commissioner to take over possession of the property. The writ petition is filed at that stage. 2. Pursuant to an interim direction of this court, the petitioners had effected payment of an amount of W.P.(C)No. 30507 of 2009 -2- Rs.50,000/-. The petitioners are seeking direction for permitting regularisation of the loan account by paying the defaulted installments and by continuing payments as per the original schedule. 3. Learned standing counsel appearing for the respondent submitted that the loan amount availed by the petitioners was misutilised without completing construction of the building, and therefore the request for regularisation cannot be permitted at any rate. It is further submitted that after crediting payments made, an amount of about Rs.5.25 lakhs is outstanding as on today. 4. Having confronted with the above position, learned counsel for the petitioners submitted that they may be permitted to pay off the entire liability in installments within a reasonable period. It is further submitted that considering the facts that the petitioners are coolie workers, the period of installments may be fixed at least as 20 months. W.P.(C)No. 30507 of 2009 -3- 5. Having regard to the submissions on both sides and considering facts and circumstances of the case, I am inclined to permit the petitioners to make payment of the entire balance in monthly installments. 6. Accordingly the writ petition is disposed of directing the petitioners to make payment of the entire balance outstanding in the loan account in ten (10) equal monthly installments starting from 30.12.2009 onwards and on or before the 15th day of succeeding nine (9) months. 7. It is It is made clear that on the event of failure to pay any of the installments as stipulated as above, the respondent will be free to proceed with further steps pursuant to the orders already issued by the Chief Judicial Magistrate and on any such event the petitioners will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/