IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 21ST DECEMBER 2010 / 30TH AGRAHAYANA 1932 WP(C).No. 37072 of 2010(H) -------------------------- PETITIONER(S): --------------- RADHAKRISHNAN.K, S/O.MR.KUTTAPPAN, RESIDING AT TC NO.50/39(2), ATTUKAL SADANAM, MUDRA NAGAR, KALADY, KARAMANA P.O., TRIVANDRUM-695 002. BY ADV. SRI.C.A.MAJEED SRI.K.H.ASIF RESPONDENT(S): --------------- 1. UNION OF INDIA, REPRESENTED BY SECRETARY, MINISTRY OF FINANCE, BANKING DEPARTMENT, NEW DELHI-110 001. 2. THE AUTHORIZED OFFICER (CHIEF MANAGER) SOUTH INDIAN BANK, REGIONAL OFFICER, HOTEL SAFA INTERNATIONAL BUILDING, THIRUVANANTHAPURAM-695 014. ADV. SRI.K.K.JOHN FOR R-2 SRI.T.P.M.IBRAHIM KHAN,ASST.S.G OF INDI FOR R-1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/12/2010. THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.37072 of 2010-H ---------------------------------------- Dated this the 21st day of December, 2010. J U D G M E N T The writ petition is filed aggrieved by coercive steps initiated under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed by the petitioner in re-payment of a housing loan availed from the respondent Bank steps were initiated against the immovable property which is the secured asset. Ext.P2 is the notice issued under Rule 8(1) of the Security Interest (Enforcement) Rules intimating steps contemplated under Section 13(4) of the Act. The petitioner submitted Ext.P3 representation offering to clear the present dues and requesting to permit regularisation of the account. According to the petitioner, the respondent Bank is proceeding with coercive steps without considering such request. Hence the petitioner seeks interference of this Court. W.P(C) No.37072 of 2010-H 2 2. Learned standing counsel appearing for the respondent Bank submitted that the loan in question was availed in the year 2009 to the tune of Rs.8 lakhs and that the petitioner had defaulted regular payments of monthly instalments. It is further submitted that the Bank had never received any representation as that of Ext.P3. 3. Considering the fact that the petitioner has got effective remedy under the statute, it is not proper and justified for this Court to interfere with the proceedings. However, learned counsel for the petitioner submitted that the re-payment period of the loan is for 15 years and that the petitioner is not intending to pursue any such statutory remedies and that he is relinquishing all challenges against the proceedings initiated. On the other hand, the limited prayer is only to permit the petitioner to regularise the account on the basis of an offer that he will pay off the arrears within a short time. 4. Eventhough interference on merits is not desirable, I am of the view that indulgence can be shown in W.P(C) No.37072 of 2010-H 3 permitting the petitioner to regularise the account, if he is relinquishing all challenges. 5. Accordingly, the writ petition is disposed of directing the respondent Bank to keep in abeyance further steps of recovery pursuant to Ext.P2 notice provided the petitioner remits the entire amount in default (defaulted instalments along with interest and expenses if any due) in 2 (two) equal monthly instalments falling due on or before 15.1.2011 and on or before 15.2.2011. The petitioner shall also make payment of regular instalments due for the months of January and February 2011 along with above said payments. 6. If payments of defaulted amounts is regularised as directed above, the respondents shall permit the petitioner to continue payment of the future instalments in terms of the original schedule. 7. It is made clear that on the event of default in payment of any of the instalments the respondent will be free to proceed with further steps on the basis of Ext.P2 W.P(C) No.37072 of 2010-H 4 notice. It is further made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against such proceedings. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// P.A to Judge ab