Kerala High Court
Souda Beevi vs The Alleppey District Co-Operative on 30 June, 2011
Author: C.K.Abdul Rehim
Bench: C.K.Abdul Rehim
IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 15257 of 2011(F)
1. SOUDA BEEVI, PUTHENCHIRA, THIRUMALA
... Petitioner
2. P.M.ISMAIL, PUTHENCHIRA, THIRUMALA
3. MUHAMMAD SUNEER P.I., PUTHAN CHIRA,
Vs
1. THE ALLEPPEY DISTRICT CO-OPERATIVE
... Respondent
For Petitioner :SRI.A.AHZAR
For Respondent :SRI.P.K.VIJAYAMOHANAN,SC,ALP.DIST.CO-OP
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :30/06/2011
O R D E R
C.K.ABDUL REHIM, J.
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W.P.(C).No.15257 of 2011
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Dated this the 30th day of June, 2011.
J U D G M E N T
Consequent to default committed in repayment of a housing loan availed by the petitioners from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. Invoking Section 14(1), the respondent Bank had approached the Chief Judicial Magistrate Court seeking assistance for taking over possession of the immovable property, which is the secured asset. Ext.P1 is the notice issued by the Advocate Commissioner appointed by the CJM Court requiring the petitioners to hand over possession of the property.
2. According to the petitioners, the loan in question was availed in the year 2009 with repayment period extending to 7 years, and the coercive steps of recovery has now been initiated without acceding to their request to 2 W.P.(C).No.15257 of 2011 permit regularisation of the account on the basis of an offer made to make payment of amounts in default, within a short period. Pursuant to an interim order issued by this Court, the petitioners had already remitted a sum of Rs.2 lakhs.
3. Heard ; standing counsel appearing for the respondent Bank. It is submitted that the loan account is in chronic default and even after payment of the sum of Rs.2 lakhs there exists balance amount overdue for payment, in order to regularise the account.
4. Considering the effective alternative remedy provided under Section 17(1) of the SARFAESI Act, it may not be justified on the part of this Court to interdict with. However, learned counsel appearing for the petitioner made a plea to this Court to permit regularisation of the account, on the basis of a specific undertaking that the petitioners are relinquishing all challenges and also relinquishing rights if any available to invoke statutory remedy. On the other hand, the petitioners offered payment of balance amounts if any in default, within a short period. 3 W.P.(C).No.15257 of 2011
5. While considering the limited relief sought for, I am of the view that, eventhough interference on merits is not warranted, the petitioners can be permitted to regularise the account considering the relinquishments made and also considering the fact that the repayment period has not expired.
6. Accordingly, the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps for dispossession and sale of the immovable property, subject to condition of the petitioners remitting the balance amount remaining overdue for payment (defaulted monthly instalments along with interest and expenses if any due), in 2 (two) equal monthly instalments, falling due on or before 15.8.2011 and on or before 15.9.2011 along with payment of regular monthly instalments due for the month of August and September 2011 with the respective payments.
7. If payment of amounts in default is regularised as directed above, then the respondents shall permit the 4 W.P.(C).No.15257 of 2011 petitioners to make payment of the future monthly instalments in accordance with the original schedule of repayment.
8. It is made clear that on the event of default in payment of any one of the instalments as stipulated above or any future monthly instalments, the respondents will be free to proceed with further steps, on the basis of the notices already issued and on such event the petitioners will be precluded from raising any subsequent challenge.
C.K.ABDUL REHIM, Judge ami/