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. 17810 of 2011(A) -------------------------------------- PETITIONER: ------------------- RANI PAUL, W/O.PAUL, VARAPUZHAKARAN THALIATH HOUSE, EAST CHALAKUDI, MUKUNDAPURAM TALUK, THRISSUR DISTRICT. BY ADV. SRI.A.F.SEBASTIAN. RESPONDENT: ---------------------- THRISSUR DISTRICT CO-OP.BANK LTD., HEAD OFFICE, THRISSUR-680 022, REP.BY THE AUTHORISED OFFICER, (SARFAESI ACT). BY ADV. SRI. P.C. SASIDHARAN. 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.17810/2011-A: APPENDIX PETITIONERS' EXHIBITS: EXT.P.1: COPY OF THE DEMAND NOTICE ISSUED BY THE RESPONDENT. EXT.P.2: COPY OF THE POSSESSION NOTICE ISSUED BY THE RESPONDENT. EXT.P.3: COPY OF THE ENTRIES IN THE LOAN PASS BOOKS ISSUED BY THE RESPONDENT. EXT.P.4: COPY OF THE RELEVANT PORTION OF THE MASTER CIRCULAR – PRUDENTIAL NORMS ON INCOME RECOGNITION, ASSET CLASSIFICATION AND PROVISIONING PERTAINING TO ADVANCES (RBI/2008-09/84-DBOD.NO.BP.BC.20/21.04/048/2008-09). RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE. Prv. C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 17810 of 2011 --------------------------------- Dated this the 1st day of July, 2011 JUDGMENT Consequent to default committed in repayment of two housing loans availed by the petitioner from the respondent Bank, coercive steps of recovery has been initiated by resorting to proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). The immovable property, which is the secured asset, is now sought to be taken over possession by seeking assistance from the CJM Court under section 14(1) of the Act. It is stated that an Advocate Commissioner has already been appointed by the Chief Judicial Magistrate Court to take over possession of the property. According to the petitioner, the drastic steps are now being pursued without permitting regularisation of the account, on the basis of an offer made to make payment of the amounts in default within a short period. 2. Learned Standing Counsel appearing for the respondent Bank submitted that both the loan accounts are in chronic default and the petitioner is not taking any earnest WP(C).17810/2011 2 efforts to pay off the liability, inspite of repeated notices issued. However it is stated that if the petitioner makes payment of the entire amounts remaining overdue, the petitioner can be permitted to continue payment of the future monthly instalments, subject to condition of the petitioner relinquishing all challenges raised against the proceedings and also relinquishing rights if any to invoke statutory remedy. Learned counsel for the petitioner conceded that the petitioner may be permitted to regularise the account on relinquishing all rights as mentioned above. 3. Considering the effective alternative remedy provided under section 17(1) of the Act, it may not be justified on the part of this court to interdict with the proceedings at this stage. However, I am of the view that, in view of the relinquishments made and in view of the concession expressed by the Standing Counsel appearing on behalf of the respondent the petitioner can be permitted to regularise the account. 4. Accordingly, the writ petition is disposed of directing respondent to keep in abeyance all further coercive steps for dispossession and sale of the property, subject to condition of the petitioner remitting the entire amount overdue for payment WP(C).17810/2011 3 (defaulted monthly instalments along with interest and expenses, if any due) on or before 31.8.2011, along with payment of regular monthly instalments due for the month of August, 2011. 5. If payment of the defaulted amount is regularised as directed above, then the respondent shall permit the petitioner to pay the future monthly instalments in both the loan accounts in accordance with the original schedule of repayment. 6. It is made clear that on the event of default committed in payment of any one of the instalments as stipulated above, or any of the future monthly instalments, the respondents will be free to proceed with further steps on the basis of the notices already issued and steps taken 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).17810/2011 4