IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 11TH APRIL 2011 / 21ST CHAITHRA 1933 WP(C).No. 2984 of 2011(W) -------------------------------------- PETITIONER(S): ----------------------- 1. P.P. JAYAKUMAR, S/O. LATE PADMANABHAN, PUTHUVALAKKATTIL HOUSE, NADAVARAMBU P.O., IRINJALAKKUDA-680 661. 2. SMT. NISHAMOL P.P., W/O. K.R. SUMESH, RESIDING -DO- -DO-. BY ADV. SRI.K.PRAVEEN KUMAR RESPONDENT(S): ------------------------- 1. THE FEDERAL BANK LTD., REP. BY ITS MANAGER, CHALAKKUDY BRANCH, 680 307. 2. THE CHIEF MANAGER/AUTHORIZED OFFICER, FEDERAL BANK LTD., FEDERAL TOWERS, ALUVA-683 101. R1 & R2 BY ADV. SRI.MOHAN JACOB GEORGE, SMT.P.V.PARVATHI, SMT.REENA THOMAS, SRI.L.RAM MOHAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11/04/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 2984 of 2011 --------------------------------- Dated this the 11th day of April, 2011 JUDGMENT Coercive steps of recovery initiated under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) is the subject matter of challenge in this writ petition. Consequent to default committed in repayment of a housing loan availed by the petitioners from the respondent Bank, the immovable property, which is the secured asset, has now been proceeded against. Ext.P1 is the notice issued initiating steps under section 13(2). According to the petitioners, the coercive steps are now being pursued without considering request made by them for permitting regularisation of the account by payment of the amounts in default. 2. Standing Counsel appearing for the respondent Bank, on the basis of instructions, submitted that the loan in question was availed in the year 2006 to the tune of Rs.4,25,000/- with a repayment period of 180 months and the petitioner had committed consecutive defaults in payment of the monthly WP(C) .2984/2011 2 instalments. It is stated that, even the amount over due for payment will come to Rs.4,69,480/-. Since the loan account is in chronic default, the respondent is not favouring to permit regularisation of the account. 3. Considering the facts and circumstances, I am of the view that interference of this court is not at all warranted in view of the effective alternative remedy available under section 17(1). However, learned counsel for the petitioners submit that the petitioners are ready and willing to pay off the amount over due for payment and to continue payment of the future monthly instalments in accordance with the original schedule. It is further undertaken that the petitioners are not intending to pursue any statutory remedy and that they are relinquishing all challenges. 4. Considering the facts and circumstances as stated above, I am of the view that, eventhough interference on merits is not proper, indulgence can be shown in permitting regularisation of the account considering the fact that the petitioners have relinquished all challenges against the proceedings and also considering the fact that the repayment period of the loan is 180 months. WP(C) .2984/2011 3 5. Accordingly, the writ petition is disposed of directing respondents to keep in abeyance all further coercive steps for dispossession and sale of the property, subject to condition of the petitioner remitting the amount in default (defaulted monthly instalments along with interest and expenses, if any due) in two instalments, falling due on or before 30.4.2011 and on or before 31.5.2011, along with regular monthly instalments due for the respective months. 6. If payment of the defaulted amount is regularised as directed above, the respondents will permit the petitioners to pay the future monthly instalments in accordance with the original schedule of repayment. Needless to say that if the petitioner makes any approach before the respondent, he shall be issued with details regarding statement of accounts in order to facilitate payment as directed above. 7. It is made clear that on the event of default committed in payment of any one of the instalments or any future monthly instalments as stipulated above, the respondents will be free to proceed with further steps on the basis of the proceedings initiated before the Chief Judicial Magistrate Court and on such WP(C) .2984/2011 4 event the petitioner will be precluded from raising any subsequent challenge against such proceedings . C.K.ABDUL REHIM,JUDGE pmn/