IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 7TH OCTOBER 2009 / 15TH ASWINA 1931 WP(C).No. 37699 of 2008(K) -------------------------- PETITIONER: --------------- G. SIDHARTHAN, PULICKAL VEEDU, KOMANA, AMBALAPUZHA, ALAPPUZHA DISTRICT. BY ADVS. SRI.K.S.HARIHARAPUTHRAN SRI.GEORGE MATHEW RESPONDENT(S): --------------- 1. UNION BANK OF INDIA, ALAPPUZHA BRANCH, ALAPPUZHA, REPRESENTED BY ITS BRANCH MANAGER. 2. THE AUTHORISED OFFICER, UNION BANK OF INDIA, ALAPPUZHA BRANCH. ** ADDL. R3 IS IMPLEADED: R3. MOHANAN, AGED 42 YEARS, S/O. THANKAPPAN, CHAKKALAKALAM, KANJIPADAM, ALAPPEY. **(ADDITIONAL R3 IS IMPLEADED AS PER ORDER DATED 30.09.2009 IN I.A. NO.11763/2009). R1 & R2 BY ADV. SRI. A.S.P. KURU, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 37699 of 2008 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 7th day of October, 2009 J U D G M E N T 1. Petitioner is challenging proceeding initiated against him by the respondents 1 & 2 under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), for taking over possession of the secured assets (immovable properties) mortgaged for availing loan from the 1st respondent Bank. The loan in question was availed during the year 2006 and repayments were defaulted by the petitioner after effecting few payments. The Bank thereupon had initiated proceedings under the SARFAESI Act and published notices as evidenced by Exts.P1 & P3 for taking over possession of the property. Complaint of the petitioner is that eventhough he had approached the Bank and expressed willingness to regularize the account by paying the defaulted installments, such request was not considered. Learned counsel appearing for the petitioner W.P.(C)No. 37699 of 2008 -2- submitted that the petitioner is ready to pay off the entire liability, in installments within a reasonable time. 2. Heard standing counsel appearing for the respondent Bank. It is submitted that the arrears as on 01.07.2008 is Rs.4,13,101/-. But the counsel for the petitioner pointed out that as per Ext.P3 the arrears as on 01.07.2008 is Rs.3,80,101/- only. On behalf of respondent Bank it is submitted that the petitioner is a chronic defaulter and therefore the Bank is opposing proposal for regularisation at this stage, and granting of installment facility for payment of the defaulted amount. 3. Having considered rival contentions and facts and circumstances of the case, I am of the opinion that some indulgence can be shown to permit the petitioner to pay off the entire liability in installments. Accordingly the Writ Petition is disposed of directing the petitioner to make payment of a sum of Rs.1,00,000/- on or before 10.11.2009. In the meanwhile respondents 1 & 2 are directed to keep in abeyance further steps. On payment of the said amount, the W.P.(C)No. 37699 of 2008 -3- 1st respondent Bank shall furnish a balance statement to the petitioner after giving credit of all payments made and after considering waiver of interest or penal interest if any to the possible extent. The petitioner shall continue to pay the balance amount outstanding as per the statement, in five (5) equal monthly installments starting from 10.12.2009 and on or before the 10th day of every succeeding month. 4. It is made clear that on the event of default in payment of any amount as stipulated, the respondent Bank will be free to proceed pursuant to the notices already issued. It is made clear that the benefit granted under this judgment is subject to the condition that the petitioner is precluded from raising any further challenge against the proceeding initiated under the SARFAESI Act, before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/