IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 9TH DECEMBER 2010 / 18TH AGRAHAYANA 1932 WP(C).No. 33375 of 2010(V) -------------------------- PETITIONER(S): --------------- K.K.CHANDRAN, AGED 43, S/O.KUTTAPPAN, KATTUNGAL HOUSE, CHUNDAKKUZHI P.O., VENGOOR P.O., ERNAKULAM DISTRICT. BY ADV. SRI.N.K.KARNIS RESPONDENT(S): --------------- AUTHORISED OFFICER, BANK OF INDIA, ZONAL OFFICE, KALOOR, ERNAKULAM, COCHIN - 682 017. ADV. SRI.P.P.JOYI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/12/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.33375 of 2010-V ---------------------------------------- Dated this the 9th day of December, 2010. J U D G M E N T Ext.P1 notice issued by the Advocate Commissioner appointed by the Chief Judicial Magistrate Court, Ernakulam, in a proceedings initiated under Section 14(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is under challenge in this writ petition. Consequent to default committed by the petitioner in repayment of a loan availed from the respondent, steps against the immovable property, which is the secured asset was initiated. 2. It is noticed that the petitioner has not availed any of the statutory remedies at any stage prior to initiation of the proceedings under Section 14(1). As such the challenge raised against the proceedings could not be entertained in this writ petition. Learned counsel appearing for the respondent Bank submitted that a sum of about `2,50,000/- is due as on 27.1.2009, along with interest due thereafter, W.P(C) No.33375 of 2010-V 2 and the petitioner had failed to make payment of the amounts inspite of different notices issued. 3. Confronted with the above situation, learned counsel for the petitioner submitted that the petitioner is not intending to pursue any of the statutory remedies and that he is relinquishing all challenges against the proceedings initiated under the SARFAESI Act. On the other hand, limited prayer of the petitioner is only to permit regularisation of the account by payment of the arrears in default, with a view to save the property from being sold. 4. By way of indulgence this Court had restrained the respondent from taking over physical possession of the property, subject to condition of the petitioner remitting a sum of Rs.50,000/-. It is reported that the amount was paid on 7.12.2010. Considering the limited prayer made, I am of the view that indulgence can be shown in granting instalment facility for payment of the amount in arrears. This is especially because of the fact that the petitioner had relinquished all challenges against the proceedings. 5. Accordingly, the writ petition is disposed of W.P(C) No.33375 of 2010-V 3 directing the respondent to keep in abeyance further steps of recovery, subject to condition of the petitioner remitting the entire amount in default (defaulted instalments along with interest and expenses if any due) in 5 (five) equal monthly instalments falling due on or before 31.12.2010 and on or before the last day of succeeding months. On such payment the respondent shall take decision regarding continuance of the loan transaction on the basis of the terms of the original loan agreement. 6. It is made clear that on the event of default in payment of any one of the instalments, the respondent will be free to proceed with further steps pursuant to the notice already issued by the Advocate Commissioner. It is further made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against the proceedings. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// ab P.A to Judge W.P(C) No.33375 of 2010-V 4