IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 23RD MARCH 2011 / 2ND CHAITHRA 1933 WP(C).No. 8028 of 2011(C) ------------------------ PETITIONER : -------------------- S.SURENDRAN, S/O.SUKUMARAN, AGED 52 YEARS, RESIDING AT SREE HARI NIVAS,VELLIMON, EDAVATTOM, KUNDARA, KOLLAM(DIST). BY ADVS. SRI.S.RAJASEKHARAN NAIR SRI.RAJU SEBASTIAN VADAKKEKKARA RESPONDENT : ---------------------- CHIEF MANAGER AND AUTHORISED OFFICER, CANARA BANK, KOTTARAKKARA BRANCH, KOTTARAKKARA – 691 506. BY ADV. SRI. PAULY MATHEW MURICKEN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Mn C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.8028 of 2011 ------------------------------------------- Dated this the 23rd day of March, 2011 J U D G M E N T ---------------------- Consequent to default committed by the petitioner in repayment of a housing loan availed in the year 2003, the respondent Bank had initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Ext.P4 is the notice of demand issued under Section 13 (2) of the Act. According to the petitioner, further steps are now being threatened without considering Ext.P5 representation submitted seeking six months' time to pay off the entire debt. 2. Considering the fact that the proceedings is only at the stage of demand under Section 13(2) and also considering the effective statutory remedy provided under Section 17(1) it is not justified on the part of this court to interfere. However, learned counsel for petitioner submitted that the petitioner is not intending to pursue any statutory W.P.(C).8028/11 -2- remedy and that he is relinquishing all challenges. A limited prayer is made to permit regularisation of the account on the basis of an offer made that the defaulted amounts will be remitted within a short period. 3. Heard, counsel for respondent Bank. It is submitted that the default as on 27.10.2010 is more than Rs.7.24 lakhs. Even the amount overdue for payment is above Rs.2 lakhs, is the submission. Since the account is in chronic default, the request for regularisation was not considered favourably, is the submission. 4. Eventhough interference on merits is not warranted, I am of the view that, in view of the relinquishments made, indulgence can be shown in permitting the petitioner to regularise the account. 5. Accordingly the writ petition is disposed of directing the respondents to keep in abeyance all further steps initiated pursuant to Ext.P4 notice, subject to condition of the petitioner remitting the amounts overdue for payment (defaulted instalments along with interest and expenses if any due) in 3 (three) equal monthly instalments falling due on or before 15.4.2011 and on or before the 15th day of the two succeeding W.P.(C).8028/11 -3- months along with payment of regular EMIs due for the respective months. 6. If payments of defaulted amounts are regularised as directed above, then the respondents shall permit the petitioner to continue payment of future monthly instalments in accordance with the original schedule of repayment. 7. It is made clear that on the event of default in payment of any one of the instalments as stipulated or any one of the future monthly instalments, the respondents will be at liberty to proceed with further steps and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE. okb