IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 11TH DECEMBER 2009 / 20TH AGRAHAYANA 1931 WP(C).No. 34885 of 2009(E) -------------------------- PETITIONER(S): --------------- SUGATHAN, AGED 52 YEARS, S/O. LATE DAMODARAN, PADINJATTUVILA VEEDU, PARIPPALLY VILLAGE & POST OFFICE, KOLLAM DISTRICT. BY ADV. SRI.V.VENUGOPALAN NAIR SRI.C.UNNIKRISHNAN (KOLLAM) RESPONDENT(S): --------------- 1. STATE BANK OF TRAVANCORE, PARIPPALLY BRANCH, REPRESENTED BY BRANCH MANAGER, KOLLAM DISTRICT. 2. THE AUTHORISED OFFICER AND CHIEF MANAGER, STATE BANK OF TRAVANCORE, REGION FOR ZONAL OFFICE, THIRUVANANTHAPURAM. RESPONDENTS BY ADV.SRI.R.S.KALKURA (SC FOR SBT) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------- WP(C) No.34885 OF 2009 ---------------------------------- Dated this the 11th day of December, 2009 JUDGMENT Challenge in this writ petition is against the proceedings initiated under Section 14(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the SRFAESI Act'). Petitioner availed a personal loan from the first respondent to the tune of Rs.8,25,000/-, during July 2007. As per terms of the loan, the amount ought to have been repaid in 84 equal monthly installments. The petitioner was employed in Gulf countries. According to the petitioner, he met with a major accident at the work site on 18.11.2007 and he has to come back for continuing treatment for a prolonged period. Medical records with respect to the accident and his treatment are produced as Ext.P2 series. Due to the above said unforeseen contingency, the petitioner could not effect prompt repayment, is the contention. 2. However, consequent to default committed, the respondents initiated coercive proceedings and Ext.P4 notice was issued by the Advocate Commissioner appointed under Section 14(1) to take over possession of the immovable property which is the secured asset, on 31.3.2009. It is submitted by the Standing Counsel for respondents, that since the premises of the house was seen locked, police assistance is now being sought for from the Chief Judicial Magistrate 2 Court and the matter is pending consideration before that court. 3. It is submitted that the petitioner has now gone back to Gulf country and he is now employed therein. So the limited prayer is to permit him to regularize the account by paying the defaulted amounts, within a reasonable time. Learned Standing Counsel for respondent bank is opposing such requests on the basis that the loan account is in chronic default since the year 2007 onwards. However, it is submitted that the amounts pertaining to the defaulted installments along with interest and other expenses will be around Rs.5,29,000/-, whereas the total arrears outstanding is more than Rs.10,52,000/-. 4. Having considered facts and circumstances of the case and also the special circumstances existed in connection with the accident of the petitioner, I am of the opinion that some indulgence can be shown in the matter of permitting the petitioner to regularize the account, within a short period, by paying the defaulted amounts. 5. Accordingly, the writ petition is disposed of directing the respondents to keep in abeyance further coercive steps for dispossession of the petitioner and for sale of the property, if the petitioner makes payment of the entire amounts pertaining to the defaulted installments along with interest and expenses if any due, in 6 (six) equal monthly installments falling due on or before 31.1.2010 3 and on or before the last day of the succeeding months. The petitioner shall also make payments of the regular installments due from January, 2010 onwards along with the above said payments. If the defaulted amounts are cleared payment as directed above, the respondent shall permit the petitioner to continue payment of the future installments as per the original schedule of repayment. 6. It is made clear that on the event of default in payment of any of the installments, the respondents will be free to proceed with further steps pursuant to the orders already issued under Section 14 (1) 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 cms