IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 22ND JUNE 2011 / 1ST ASHADHA 1933 WP(C).No. 13041 of 2011(E) ---------------------------------- PETITIONER(S): ------------------- 1. JENU JACOB, S/O JACOB, AGED 40, KALAYANAPARAMBIL HOUSE, KATTYPARAMBU, KANNAMALY. 2. DHANU XAVIER, W/O JENU JACOB, AGED 34, KALAYANAPARAMBIL HOUSE, KATTYPARAMBU, KANNAMALY. BY ADV. SMT.M.S.LETHA RESPONDENT(S): -------------------- 1. THE AUTHORISED OFFICER, AIG HOMES FINANCE INDIA LTD., 37/3450, 2ND FLOOR, KALYANI TOWER, DESHABIMANI JUNCTION, KOCHI-682017. 2. AIG HOMES FINANCE INDIA LTD., 37/3450, 2ND FLOOR, KALYANI TOWER, DESHABIMANI JUNCTION, KOCHI-682017. 3. THE VILLAGE OFFICER, PALLURUTHI, KOCHI-682005. 4. SUB INSPECTOR OF POLICE, MATTANCHERY, KOCHI-682002. R1 & 2 BY ADV. SRI.RAJESH THOMAS R3 & R4 BY GOVT.PLEADER SRI.BIJOY CHANDRAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs W.P.(C). NO. 13041/2011 APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF NOTICE U/S. 13 (2) OF SARFAESI ACT. P2: COPY OF THE NOTICE U/S. 13 (4) OF THE SARFAESI ACT. P3: COPY OF THE PAYMENT SLIP DATED 25/01/2011. P4: COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DATED 28/03/2011. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A. TO JUDGE. svs C.K.ABDUL REHIM, J. ----------------------------- W.P.(C)No.13041 of 2011 ----------------------------------- Dated this the 22nd day of June 2011 J U D G M E N T Consequent to default committed by the petitioners in repaying a housing loan availed from respondents 1 and 2, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), 2002 was initiated. Through Ext.P2 notice, the petitioners were intimated about the action taken as contemplated under Sec.13(4) of the Act, against the immovable property, which is the secured asset. According to the petitioners, the coercive steps are now being pursued without acceding to their request to permit regularisation of the account on the basis of an offer made to make payment of amounts remaining overdue, within a reasonable time. It is contended that the loan in question was availed in the year 2006 and the repayment period is W.P.(C)No.13041 of 2011 -: 2 :- extending to 10 years. Therefore, the petitioners seek interference of this Court to permit regularisation of the account. 2. Heard; counsel appearing for respondent Nos.1 and 2. It is submitted that the loan account is in serious default and the total amount outstanding payment is more than `3.66 lakhs. 3. By virtue of an interim order issued by this Court on 6.5.2011, the petitioners had effected payment of a sum of `1,00,000/-. Counsel for the petitioners submits that the petitioners are ready and willing to pay the balance amount in default within a short period. On that premise, the petitioners seek indulgence of this Court in permitting regularisation of the account on the basis of a specific undertaking that the petitioners are relinquishing all challenges against the proceeding and that they are not intending to pursue statutory remedy, if any available. Learned counsel for respondents 1 and 2 submitted that W.P.(C)No.13041 of 2011 -: 3 :- even the amount remaining overdue for payment is more than `1,00,000/-. 4. Considering the effective statutory remedy provided under Sec.17(1) of the Act, it may not be justified on the part of this Court to interfere with the proceeding. However, in view of the relinquishments made and in view of the fact that repayment period is for 10 years, even though interference on merit is not called for, I am inclined to direct permitting of the petitioners to regularise the account. 5. Accordingly, this writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps for dispossession and sale of the property subject to condition of the petitioners are remitting the amounts remaining overdue (defaulted monthly instalments along with interest and expenses if any due) in 2 (two) equal monthly instalments, falling due on or before 15.7.2011 and 15.8.2011, along with payment of regular monthly W.P.(C)No.13041 of 2011 -: 4 :- instalments due for the respective months. 6. If payment of the amounts in default is regularised as directed above, then the respondents 1 and 2 shall permit the petitioners to continue payment of future monthly instalments in accordance with the original schedule of repayment. 7. It is made clear that on the event of default in payment of any one of the instalment as stipulated above or any one of the future monthly instalments, the respondents will be free to proceed with further steps on the basis of the notices already issued and on such event the petitioners are precluded from raising any subsequent challenge. C.K.ABDUL REHIM, JUDGE. Jvt