Kerala High Court
V.G.Unnikrishnan vs The Manager on 20 December, 2010
Author: C.K.Abdul Rehim
Bench: C.K.Abdul Rehim
IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 33559 of 2010(T)
1. V.G.UNNIKRISHNAN,AGED 40 YEARS,
... Petitioner
Vs
1. THE MANAGER, STATE BANK OF INDIA,
... Respondent
2. THE AUTHORISED OFFICER, STATE BANK OF
For Petitioner :SRI.ESM.KABEER
For Respondent : No Appearance
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :20/12/2010
O R D E R
C.K. ABDUL REHIM, J
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WP(C) NO. 33559 OF 2010
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Dated this the 20th day of December, 2010
JUDGMENT
Challenge in this Writ Petition is against coercive steps initiated under the provisions of the Securitisation and Reconstruction of Financial Assests and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed by the petitioner in repayment of a housing loan availed from the respondent Bank, immovable property, which is the secured asset, was proceeded against. Invoking provisions under Section 14(1), the respondents have approached the Chief Judicial Magistrate Court, Thrissur. Ext.P2 is the notice issued by the Advocate Commissioner appointed by that Court.
2. According to the petitioner the loan in question was availed only in the year 2009 and the repayment period is for five years. It is stated that, inspite of approach made seeking permission for regularising the 2 WP(C) No. 33559/2010 account, the Bank is proceeding with coercive steps without acceding to such request. Hence the petitioner seeks interference of this Court.
3. It is noticed that the petitioner has not challenged any of the steps initiated under the SARFAESI Act by invoking remedy provided under Section 17(1). Under such circumstances, it is not proper and justified for this Court to interfere with the proceedings.
4. However, learned counsel for the petitioner submitted that the petitioner is relinquishing all challenges against proceedings and that he is not intending to pursue any of the statutory remedies. On the other hand, the limited prayer is to permit regularisation of the account by offering payment of the defaulted amounts.
5. Learned standing counsel appearing for the respondent Bank submitted that an amount of Rs.33 lakhs was availed in the year 2009 and there is chronic default in payment of monthly instalments on a regular basis. 3 WP(C) No. 33559/2010 Therefore, the loan account was treated as 'NPA' and further proceedings were initiated. Considering the conduct of the petitioner the Bank is not favouring regularisation of the account.
6. As a gesture of indulgence, this Court had issued an interim stay against dispossession of the petitioner subject to imposing condition for payment of Rs.5 lakhs. It is reported that the petitioner had complied with the condition. Learned standing counsel submits that after crediting payments made there will be further default of about Rs.3 lakhs due.
7. Considering the fact that the petitioner is relinquishing all challenges against the proceeding initiated under SARFAESI Act, I am of the view that indulgence can be shown in permitting the petitioner to regularise account.
8. Therefore, the Writ Petition is disposed of directing the respondents to keep in abeyance further coercive steps for dispossession and sale of the property, 4 WP(C) No. 33559/2010 subject to condition of the petitioner remitting the amounts in default (defaulted instalments along with interest and expenses if any due) in 4 (four) equal monthly instalments falling due on or before 15.01.2011 and on or before the 15th day of the three succeeding months. The petitioner shall also make payment of the regular instalments due for the respective months, along with such payments.
9. If payment of the defaulted amounts is regularised as directed above, then the respondents shall permit the petitioner to continue payment of future monthly instalments in accordance with original schedule of repayment.
10. It is made clear that on the event of default in payment of any one of the instalments, the respondents will be free to proceed with further steps on the basis of the proceedings now initiated before the Chief Judicial Magistrate Court. It is also made clear that the relief granted above is subject to condition that the petitioner is 5 WP(C) No. 33559/2010 precluded from raising any subsequent challenge against such proceedings.
C.K. ABDUL REHIM JUDGE dnc