IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 18TH FEBRUARY 2011 / 29TH MAGHA 1932 WP(C).No. 4141 of 2011(P) -------------------------------- PETITIONER(S): ------------------- 1. SREELATHA, AGED 39 YEARS, W/O.S.SUDIN, PADIPPURA VEEDU, KEEZHATTINGAL P.O., ATTINGAL, THIRUVANANTHAPURAM-695 101. 2. SURESHKUMAR, AGED 51 YEARS, `MISHAL' KRA 69, KARICHIYIL, ATTINGAL P.O., THIRUVANANTHAPURAM-695 101. BY ADVS. SRI.MOHAN JACOB GEORGE SMT.P.V.PARVATHI SMT.REENA THOMAS SRI.L.RAM MOHAN RESPONDENT(S): --------------- 1. AUTHORIZED OFFICER, UNION BANK OF INDIA, REGIONAL OFFICE, UNION BANK BHAVAN, M.G.ROAD, STATUE, THIRUVANANTHAPURAM-695 001. 2. UNION BANK OF INDIA, REGIONAL OFFICE M.G.ROAD, STATUE, THIRUVANANTHAPURAM-695 001, REPRESENTED BY ITS MANAGER. BY ADV. SRI.A.S.P. KURUP, SC., UBI. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.4141 of 2011-P ---------------------------------------- Dated this the 18th day of February, 2011. J U D G M E N T Proceedings initiated under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and Ext.P3 consequent notice issued under Section 13(2), are the subject matter of challenge in this writ petition. Petitioners are the wife and the brother of the borrower, respectively. According to them the borrower is now missing and the respondents are now proceeding against the immovable property, which is the secured asset. According to the petitioners the coercive steps were initiated without considering request made for permitting regularisation, on the basis of an offer made for payment of amounts in default, within a short period. 2. Considering the fact that the proceedings are now only at the stage of issuing notice under Section 13(2), this Court may not be justified in interfering with the matter, W.P(C) No.4141 of 2011-P 2 especially in view of the effective remedies available under the statute. However, learned standing counsel for the respondent Bank submitted that, the loan in question was availed in the year 2004 to the tune of Rs.5 lakhs and the repayment period is for 10 years which will end only in the year 2014. It is further submitted that the amount overdue for payment (defaulted amount) is nearly Rs.1.50 lakhs. It is submitted that the Bank is ready to permit regularisation of the account provided the petitioners remit the overdue amount immediately. 3. Learned counsel appearing for the petitioners made a submission that the petitioners are ready and willing to pay off the amounts in default and also willing to make payment of the balance amount in monthly instalments as per the original schedule of repayment. It is also undertaken that they are relinquishing challenges against the proceedings and that they are not intending to pursue any statutory remedies. 4. Considering the limited relief sought for and also W.P(C) No.4141 of 2011-P 3 considering the submission made on behalf of the respondents, I am of the view that the writ petition can be disposed of permitting the petitioners to regularise the account. 5. In the result, the respondents are directed to keep in abeyance all further steps initiated pursuant to Ext.P3 notice, provided the petitioners make payment of the entire amount in default (defaulted monthly instalments along with interest and expenses if any due) as informed by the respondent Bank, in 4 (four) equal monthly instalments, falling due on or before 15.3.2011 and on or before the 15th day of succeeding months, along with payment of regular monthly instalments due for the respective months. 6. If amounts in default is regularised as directed above, the respondents shall permit the petitioners to continue payment of future monthly instalments in accordance with the original schedule. 7. It is made clear that on the event of default in payment of any one of the instalments, the respondents will W.P(C) No.4141 of 2011-P 4 be free to proceed with further steps. It is also made clear that the above relief is granted subject to the condition that the petitioners are precluded from raising any subsequent challenge against the recovery proceedings. C.K.ABDUL REHIM JUDGE ab