IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 10TH SEPTEMBER 2009 / 19TH BHADRA 1931 WP(C).No. 25339 of 2009(J) -------------------------- CMP.2696/2009 of C.J.M.,TRIVANDRUM .................... PETITIONERS: -------------------- 1. LALITHA MOHAN, W/O. C.MOHANDAS, RESIDING AT 'MEETHU BHAVAN', ERUMAKUZHY, KOTTOOR P.O., KUTTICHAL, THIRUVANANTHAPURAM. 2. S.VIJAYAN, S/O. SATHYANESAN, RESIDING AT 'SHAJI BHAVAN', ERUMAKUZHY, KOTTOOR P.O., KUTTICHAL, THIRUVANANTHAPURAM. BY ADV. SRI.A.B.MOHANAKUMAR RESPONDENT: -------------------- THE AUTHORISED OFFICER (THE CHIEF MANAGER), UNION BANK OF INDIA, REGIONAL OFFICE, UNION BANK BHAVAN, M.G.ROAD, THIRUVANANTHAPURAM. BY SRI. A.S.P. KURUP, S.C. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 25339 of 2009(J) APPENDIX PETITIONERS' EXHIBITS: P1 : COPY OF AFFIDAVIT PETITION DATED 18.06.2009 IN CMP. NO.2696/2009 FILED BY THE RESPONDENT BANK BEFORE THE CHIEF JUDICIAL MAGISTRATE'S COURT, THIRUVANANTHAPURAM, ALONG WITH SCHEDULE OF SECURED ASSETS. RRESPONDENT'S EXHIBITS : N I L // TRUE COPY // P.A. TO JUDGE. app/- C.K.ABDUL REHIM, J - - - - - - - - - - - - - - - - - - - - - - - W.P.(C) No.25339 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 10th day of September, 2009 J U D G M E N T 1. The first petitioner had availed a mortgage loan from the respondent Bank to the tune of Rs.5 lakhs, in April 2006, by mortgaging his residential property having an extent of 4.05 Ares and the second petitioner is the guarantor to the loan amount. Repayment in the loan account was defaulted and consequently the Bank had initiated recovery proceedings as contemplated under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). Ext.P1 petition was filed by the Bank before the Chief Judicial Magistrate Court, Thiruvananthapuram under section 14(1) of the Act, seeking directions for appointing of an Advocate Commissioner for taking over possession of the secured assets. The limited prayer of the petitioner is for a direction to the Bank to permit continued repayment of the loan amount as per the original schedule and to permit W.P.(C) No.25339 of 2009 2 regularisation of the loan account within a reasonable time. It is submitted by the learned counsel for the petitioner that he is prepared to clear the entire outstanding arrears in three equal monthly instalments. 2. Heard learned Standing Counsel appearing for the respondent Bank. It is submitted that the amount outstanding as on today with respect to the defaulted instalments is Rs.5,30,000/-. It is further submitted that the petitioner can be allowed to continue payment as per the original schedule, only if he makes payment of the entire default within any reasonable time. 3. Having considered the rival contentions and facts and circumstances of the case, I am inclined to dispose of the writ petition directing the petitioner to make payment of an amount of Rs.2 lakhs on or before 15th October 2009. On payment of the said amount, the respondent Bank will furnish a statement to the petitioner showing the up to date arrears with respect to the defaulted instalments including overdue interest, after crediting all payments. The W.P.(C) No.25339 of 2009 3 petitioner shall pay the balance amount as intimated, in two equal monthly instalments due on 15.11.2009 and on 15.12.2009. The petitioner shall also continue to pay regular monthly instalments due from October 2009 onwards on the respective due dates. The respondent Bank is directed to keep in abeyance further coercive proceedings till the loan account is regularised as above. 4. It is made clear that if the petitioner commits default in payment of the initial amount or any of the instalments as above, the Bank is free to take all recovery steps as permissible under law. It is further made clear that benefit granted in this judgment is subject to the condition that the petitioner is precluded from taking any further challenge against the proceeding initiated under the SARFAESI Act before this Court or before any other forum. C.K.ABDUL REHIM JUDGE app/-