IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 17TH SEPTEMBER 2009 / 26TH BHADRA 1931 WP(C).No. 26215 of 2009(V) -------------------------- CMP.2400/2009 of C.J.M.,TRIVANDRUM .................... PETITIONER(S): --------------- RAJKUMAR, DHANYA STUDIO, MANACAUD, THIRUVANANTHAPURAM. BY ADV. SRI.SUMAN CHAKRAVARTHY SRI.A.S.ANILKUMAR RESPONDENT(S): --------------- 1. THE AUTHORIZED OFFICER, UNION BANK OF INDIA, KAZHAKOOTAM BRANCH, SREEDHARA NILAYAM, MAIN ROAD, KAZHAKOOTAM P.O., THIRUVANANTHAPURAM. 2. THE UNION BANK OF INDIA, REPRESENTED BY ITS CHIEF MANAGER, UNION BANK BLDG., P.BOX NO.307, M.G.ROAD, STATUE, THIRUVANANTHAPURAM. STANDING COUNSEL SRI.A.S.P.KURUP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM,J ---------------------- W.P.(c) No.26215 of 2009 ---------------------------------------- Dated this the 17th day of September 2009 J U D G M E N T The petitioner had availed a housing loan from the 1st respondent Bank to the tune of Rs.10 lakhs, during the year 2006. As per the schedule, the loan has to be repayed within a period of fifteen years in equal monthly instalments of Rs.12,000/- each. Since the petitioner defaulted payment of the monthly instalments, the Bank initiated proceedings against the secured assets under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). The Chief Judicial Magistrate, Thiruvananthapuram had already issued Ext.P3 order under Section 14 of the SARFEASI Act, appointing an Advocate Commissioner to take over possession of the secured assets. It is submitted by the learned counsel for the petitioner that in order to show his bona fides, he had already paid an amount of Rs.71,000/- after the initiation of the impugned proceedings. It is further submitted that he is ready and willing to pay off the W.P.(c) No.26215/09 2 defaulted instalments within a reasonable time in order to regularise the account and shall pay the balance monthly instalments as per the original schedule, without any further default. 2. Heard learned Standing Counsel for the respondents, who on instructions submitted that, the amount outstanding payment with respect to the defaulted instalments itself is more than Rs.3,00,000-, and the petitioner is a chronic defaulter. He opposes granting of instalment facility for settlement of the overdue arrears. 3. Having considered the rival contentions, I am of the opinion that, even though interference against the proceedings under the SARFAESI Act may not be proper, in view of the effective alternative remedy available, this is a fit case where some indulgence can be shown to permit the petitioner to regularise payments in the loan account. 4. Accordingly, the writ petition is disposed of directing the petitioner to make payment of the amount outstanding with respect to the defaulted instalments along with interest if any due, in three (3) equal monthly instalments starting from 15/10/2009 and on or before the 15th day of the succeeding two W.P.(c) No.26215/09 3 (2) months. He shall also continue payment of the regular instalments due with respect to those months. If payments as above are made without any default, the respondent bank shall permit the petitioner to continue repayment of the balance EMIs as per the original schedule, without resorting to any further steps pursuant to the actions now initiated. 5. It is made clear that on defaulted in payment of any amount as stipulated above, the respondent Bank is free to take further steps pursuant to the SARFAESI proceedings from the stage where it will be kept pending, without issuing any further notice. It is also made clear that the benefit granted under this judgment is subject to the condition that the petitioner is precluded from making any further challenge against the proceedings before this court or before any other forum. (C.K.ABDUL REHIM, JUDGE) jsr