IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 1ST JULY 2011 / 10TH ASHADHA 1933 WP(C).No. 17467 of 2011(G) --------------------------------------- PETITIONER: ------------------- V.T.FARZANA, W/O.NAJEEB, RABIA MAHAL, JUBILEE ROAD, TEMPLE GATE P.O., THALASSERY- 670 102. BY ADVS. SRI.A.MOHAMED MUSTAQUE, SRI.K.R.AVINASH (KUNNATH). RESPONDENTS: ------------------------ 1. THE UNION BANK OF INDIA, KANNUR, HAJI BUILDING, FORT ROAD, REPRESENTED BY BRANCH MANAGER- 670 002. 2. THE AUTHORIZED OFFICER, SARFAESI, UNION BANK OF INDIA, KANNUR, HAJI BUILDING, FORT ROAD, KANNUR-670 002. R1 & R2 BY SRI. A.S.P. KURUP, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/07/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.17467/2011-G: APPENDIX PETITIONERS' EXHIBITS: EXT.P.1: COPY OF THE NOTICE ISSUED BY RESPONDENT BANK. EXT.P.2: COPY OF THE ACCOUNT STATEMENT ISSUED BY RESPONDENT BANK. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE. Prv. C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 17467 of 2011 --------------------------------- Dated this the 1st day of July, 2011 JUDGMENT Consequent to default committed by the petitioner in repaying a housing loan availed from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated against the immovable property which is the secured asset with respect to the loan transaction. 2. According to the petitioner, the loan in question was availed in the year 2005 with repayment period extending to 20 years and the coercive steps are now being pursued without considering his request to permit regularisation of the account. 3. Considering the effective alternative remedy provided under section 17(1), it may not be justified on the part of this court to interdict with the proceedings, at this stage. However, learned counsel appearing for the petitioner submitted that the petitioner is not intending to pursue any statutory remedy and that he is relinquishing all challenges against the proceedings initiated under the SARFAESI Act. The limited prayer is to WP(C) 17467/2011 2 permit regularisation of the account on the basis of an offer to make payment of the amount in default within a short time. 4. Learned Standing Counsel appearing for the respondents submitted that the amount in default is around Rs.1.75lakhs/- and inspite of repeated demands the petitioner has not cared to make payment of the said amount. Due to the default committed, the account was declared as NPA in the year 2010, is the submission. 5. Considering the facts and circumstances as stated above, I am of the view that, eventhough interference on merits is not desirable, indulgence can be shown in permitting regularisation of the account in view of the relinquishment of all challenges . 6. Accordingly, the writ petition is disposed of directing respondents to keep in abeyance all further steps for dispossession of immovable property, if not already dispossessed, subject to condition of the petitioner remitting the entire amounts in default (defaulted monthly instalments along with interest and expenses, if any due) on or before the end of August, 2011 along with payment of monthly instalments due for the month of August, 2011. WP(C) 17467/2011 3 7. If payment of the defaulted amount is regularised as directed above, then the respondents shall permit the petitioner to pay the future monthly instalments in accordance with the original schedule of repayment. 8. It is made clear that on the event of default committed in payment of the amount as stipulated above, or in payment of any one of the future monthly instalments, the respondents will be free to proceed with further steps, on the basis of proceedings initiated before the Chief Judicial Magistrate Court, and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K.ABDUL REHIM,JUDGE pmn/ WP(C) 17467/2011 4