IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM TUESDAY, THE 22ND DAY OF FEBRUARY 2011/3RD PHALGHUNA 1932 WP(C).No. 32143 of 2010 (P) --------------------------- PETITIONERS: ------------- 1. V.K.SABU,VARUKALATHARA HOUSE, VELLOOR.P.,NEAR EXCELSSIOR SCHOOL, KOTTAYAM-686001. 2. SUDHA.K.V,W/O.V.K.SABU,VARUKALATHARA HOUSE,VELLOOR.P.O,NEAR EXCELSSIOR SCHOOL KOTTAYAM-686001. BY ADVS.SRI.PHILIP T.VARGHESE SRI.THOMAS T.VARGHESE SMT.ACHU SUBHA ABRAHAM RESPONDENT: -------------- DEWAN HOUSING FINANCE CORPORATION LTD., IST FLOOR,K.M.M.BUILDING,PALARIVATTOM ERNAKULAM-682025. BY ADV. SRI.K.THYAGARAJESWARAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22-02-2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 32143 of 2010 (P) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : COPY OF THE PETITION DTD.2.9.2010 FILED BY THE RESPONDENT BEFORE THE CHIEF JUDICIAL MAGISTRATE COURT, KOTTAYAM RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A TO JUDGE C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.32143 of 2010-P ---------------------------------------- Dated this the 22nd day of February, 2011. J U D G M E N T Consequent to default committed in repayment of a housing loan availed by the petitioners from the respondent Bank, coercive steps were initiated against the immovable property, which is the secured asset. Invoking Section 14 (1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), the Chief Judicial Magistrate Court was approached, and an Advocate Commissioner was appointed by that court, to take over possession of the property. 2. Contention of the petitioners is that there is only a default of few instalments and the coercive steps were pursued without considering the request made for regularising the loan on the basis of the offer made for payment of the amounts in default. Learned standing counsel appearing for the respondent contended that the loan account is in chronic default and the petitioners had W.P(C) No.32143 of 2010-P : 2 : defaulted payment of consecutive instalments. It is stated that the attitude of the petitioners were not at all serious and inspite of repeated notices they have not cared to clear payment of the amounts due. The Bank is not favouring in permitting regularisation of the account. 3. Considering availability of the effective alternative remedy, it may not be justified on the part of this Court to interdict with the proceedings. However, learned counsel for the petitioners made an undertaking that the petitioners are not intending to pursue any statutory remedy, on the other hand they are relinquishing all challenges against the proceedings. A limited prayer is made that the petitioners may be permitted to regularise the account, considering the fact that the loan was availed only in the year 2005 and the repayment period is 15 years. 4. While considering the reliefs sought for, I take note of the terms of the 'Master Circulars' issued by the Reserve Bank of India, which is having statutory force. The respondent Bank is at an obligation to reclassify the debt as W.P(C) No.32143 of 2010-P : 3 : performing asset as and when the arrears is cleared payment. Hence I am of the opinion that, eventhough interference on merits is not possible, indulgence can be shown to the extent of permitting the petitioners to regularise the account. 5. Under the above mentioned circumstances, the writ petition is disposed of directing the respondent to keep in abeyance all further coercive steps of recovery, subject to condition of the petitioners remitting the entire amounts remaining in default (defaulted monthly instalments along with interest and expenses if any due) on or before 31.3.2011, along with payment of regular monthly instalments due for the month upto of March 2011. If payment of the defaulted amount is regularised as directed above, then the respondent shall permit the petitioners to continue payment of the future monthly instalments in accordance with the original schedule of repayment. 6. It is made clear that on the event of default in payment of any one of the instalments, the respondent will W.P(C) No.32143 of 2010-P : 4 : be entitled to proceed with further steps on the basis of the proceedings already initiated and on such event the petitioners will be precluded from raising any subsequent challenge against the proceedings. C.K.ABDUL REHIM JUDGE ab