Suresh Babu K.C. vs The Dewan Housing Finance … on 5 October, 2010

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 26355 of 2010(T)


1. SURESH BABU K.C.,S/O. CHANDU,
                      ...  Petitioner
2. REENA T.M. W/O.SURESH BABU K.C.,

                        Vs



1. THE DEWAN HOUSING FINANCE CORPORATION
                       ...       Respondent

2. THE DEWAN HOUSING FINANCE CORPORATION

3. THE AUTHORISED OFFICER, DEWAN HOUSING

                For Petitioner  :SRI.SUNNY MATHEW

                For Respondent  :SRI.P.PAULOCHAN ANTONY

The Hon'ble MR. Justice C.K.ABDUL REHIM

 Dated :05/10/2010

 O R D E R
                        C.K.ABDUL REHIM, J
                   ---------------------------
                    W.P(C) No.26355 of 2010-T
                  ----------------------------
              Dated this the 5th day of October, 2010.

                           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 Securitization and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002 (SARFAESI

Act) was initiated and the immovable property, which is the secured

asset was sought to be taken over possession on issuing Ext.P2

notice under Section 13(4) of the Act.

2. According to the petitioners, the coercive steps were

initiated without considering request for granting a breathing time

to make payment of the defaulted amounts. The limited prayer

raised in this writ petition is for permitting regularisation of the

account by payment of the arrears in default.

3. Eventhough interference on merits with respect to the

proceedings initiated under the SARFAESI Act was not at all

warranted, as a gesture of indulgence this Court directed the

petitioners to remit a sum of Rs.50,000/-, as per the interim order

dated 19.8.2010. It is conceded by both sides that the payment has

already been effected. Learned counsel for the respondent Bank

W.P(C) No.26355 of 2010-T 2

submitted that by effecting such payments, the default in the loan

account now stands regularised. Under such circumstances, the

petitioners are seeking indulgence for a direction to permit the

petitioners to continue payment of future instalments in accordance

with the original schedule of the loan agreement. I am of the

opinion that some indulgence can be shown subject to the condition

of permitting the respondents to proceed with further steps in case

of default.

4. In the result, the writ petition is disposed of directing the

respondents to keep in abeyance further coercive steps of recovery

pursuant to Ext.P2 notice, provided the petitioners remit all the

future monthly instalments in the loan account without any default

on the respective due dates.

5. It is made clear that on the event of default in payment

of any of the instalments the respondents will be free to proceed

with further steps. 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,

either before this Court or before any other forum.

Sd/-

C.K.ABDUL REHIM
JUDGE

//True Copy//
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