IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 4TH JANUARY 2011 / 14TH POUSHA 1932 WP(C).No. 34017 of 2010(B) -------------------------------------- PETITIONER: ------------------- ANILA.N.K., W/O.SURENDRAN V.K., VANNATHAN KANDIYIL HOUSE, CHELAKKAD P.O., BADAKARA, KOZHIKODE-673 506. BY ADVS. SRI.SIBY MATHEW, SRI.PHILIP J.VETTICKATTU, SRI.B.PREMNATH. RESPONDENTS: ------------------------ 1. THE AUTHORIZED OFFICER, THE FEDERAL BANK LIMITED, REGIONAL OFFICE FEDERAL TOWERS, MAVOOR ROAD, KOZHIKODE-673 016. 2. THE FEDERAL BANK LIMITED, BADAKARA BRANCH, KOZHIKODE, REPRESENTED BY THE BRANCH MANAGER, PIN-673 016. R1 & R2 BY ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL),S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04/01/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.34017 of 2010 ------------------------------------------- Dated this the 4th day of January, 2011 J U D G M E N T ---------------------- Consequent to default committed in repayment of a housing loan availed by the petitioner from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated and the property mortgaged was proceeded against. The petitioner is approaching this court when steps under Section 13(4) was initiated and a notice in this regard was published as per Ext.P1. 2. It is noticed that the petitioner has got an effective remedy as provided under Section 17(1) and hence this writ petition is not maintainable. However, learned counsel made an appeal to this court to permit regularisation of the loan account by offering payment of the defaulted amounts within a short period. It is further undertaken that the petitioner is not intending to pursue any W.P.(C).34017/10 -2- of the statutory remedies and that she is relinquishing all challenges against the proceedings initiated under the SARFAESI Act. On the basis of the above submission indulgence was shown in granting an interim stay against dispossession of the petitioner, subject to condition of the petitioner remitting a sum of Rs.1,00,000/-. It is reported that in compliance with the condition stipulated the petitioner had already remitted a sum of Rs.1,00,000/-. 3. Learned counsel for the respondent Bank submitted that the outstanding arrears (defaulted amounts) itself is more than Rs.3 lakhs. Learned counsel for the petitioner submits that the balance amount in default will be paid within a short period and he seeks indulgence in permitting payment of future monthly instalments in accordance with the original schedule of repayment. 4. Eventhough interference on merits is not desirable, I am of the view that indulgence can be shown in permitting the petitioner to regularise the account, especially in view of the fact that the repayment period of the loan will expire only in the year 2022. 5. Accordingly the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps of W.P.(C).34017/10 -3- recovery, which is initiated on the basis of Ext.P1 notice, provided the petitioner remits the entire balance amount in default (defaulted instalments along with interest and expenses if any due) in 3 (three) equal monthly instalments, falling due on or before 31.1.2011 and on or before the last day of the two succeeding months. The petitioner shall also make payment of the regular instalments due for the respective months, along with the above said payments. 6. If payment of defaulted amounts is regularised as directed above, the respondents shall permit the petitioner to continue payment of the 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 instalments, the respondents will be at liberty to proceed with further steps and on such event the petitioner will be precluded from raising any subsequent challenge. C.K.ABDUL REHIM, JUDGE. okb