IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 28TH SEPTEMBER 2010 / 6TH ASWINA 1932 WP(C).No. 26992 of 2010(Y) --------------------------------- PETITIONER(S): ------------------- B.SURESH KUMAR,AGED 43, S/O.V.BALAKRISHNAN NAIR, PULIMOOTTIL VEEDU,THACHOTTUKAVU, VENMARANELLOOR, MALAYINKIZH PO, THIRUVANANTHAPURAM. BY ADVS. SRI.N.RATHEESH SMT.SUMA RATHEESH RESPONDENT(S): --------------------- STATE BANK OF INDIA,STRESSED ASSETS RESOLUTION CENTRE, LHO ANNEXE(WING-1)1ST FLOOR, CHILD WELFARE COMPLEX, LMS COMPOUND, THIRUVANANTHAPURAM 695 033,REPRESENTED BY ITS AUTHORISED OFFICER. R1 BY ADVS. SRI.K.K.CHANDRAN PILLAI, SENIOR ADVOCATE SRI.A.S.SAJUSH PAUL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs C.K. ABDUL REHIM, J ------------------------------- WP(C) NO. 26992 OF 2010 ------------------------------------- Dated this the 28th day of September, 2010 JUDGMENT Challenge in this Writ Petition is against proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed by the petitioner in repaying a housing loan availed from the respondent Bank, immovable property which is the secured asset has been proceeded against. The petitioner is approaching this Court when the property was proclaimed for sale under Ext.P1. 2. It was contended that, before publication of Ext.P1 notice, the respondent had not complied with the mandatory requirements under the SARFAESI Act and no notice as contemplated under Section 13 (2) and 13 (4) was served on the petitioner. However, such contentions are refuted by counsel appearing for the respondent. 2 WP(C) No. 26992/2010 3. As per Ext.P1, the sale was posted on 31.08.2010 and as per an interim order dated 31.08.2010, this Court had restrained confirmation of sale if any take place. It is conceded by both sides that the sale was taken place on 31.08.2010. Pursuant to further direction issued by this Court on 03.09.2010 the petitioner had remitted a sum of Rs.3 lakhs. 4. Eventhough various contentions are raised challenging the proceedings, learned counsel for the petitioner conceded that the petitioner is relinquishing all challenges, provided he be permitted to regularise the accounts by payment of the defaulted amounts, within a short time. Learned counsel appearing for the respondent Bank submitted that the outstanding arrears (defaulted instalment along with interest and expenses due) in both the loan accounts will be less than Rs.1.5 lakhs. It is submitted that the petitioner had committed consecutive defaults in payment of regular instalments. 3 WP(C) No. 26992/2010 5. Having considered the facts and circumstances, I am of the opinion that indulgence can be shown in the matter of permitting regularisation of the loan account, considering the fact that there is lengthy period left over for repayment of the loan. 6. In the result, the Writ Petition is disposed of directing the respondent to keep in abeyance all further coercive steps of recovery, provided the petitioner remits the entire defaulted amount, overdue in both the loan accounts, on or before 30.10.2010. It is made clear that the petitioner should also remit regular instalments due in the accounts for the month of October 2010, along with such payments. 7. If payments in both the loan accounts are regularised as directed above, the respondent shall permit the petitioner to continue payment of future instalment in accordance with the original schedule of the repayment. 8. It is made clear that on the event of default in 4 WP(C) No. 26992/2010 complying with the stipulations contained as above, the respondent will be free to proceed with further steps on the basis of notice already issued. It is also made clear that the relief granted above is subject to condition that the petitioner is precluded from raising any subsequent challenge against such proceedings. C.K. ABDUL REHIM JUDGE dnc