IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 25091 of 2010(J)
1. STOY T.MUTTATH, MUTTATH HOUSE,
... Petitioner
Vs
1. AUTHORISED OFFICER,
... Respondent
2. AIG HOME FINANCE INDIA LTD.,
For Petitioner :SRI.RAJIT
For Respondent :SRI.RAJESH THOMAS
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :13/09/2010
O R D E R
C.K. ABDUL REHIM, J
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WP(C) NO. 25091 OF 2010
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Dated this the 13th day of September, 2010
JUDGMENT
Challenge in this Writ Petition is against proceedings
initiated under the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002 (SARFAESI Act). Consequent to default committed
in repayment of housing loan availed by the petitioner
from the respondents, steps were initiated against the
secured assets, the immovable property belonging to the
petitioner. A notice regarding the steps under Section 13
(4) was issued as per Ext.P1 to take over possession of the
property. According to the petitioner there was default in
payment of only few instalments and the repayment
period is upto the year 2015. He is expressing willingness
to clear the outstanding arrears and to continue payment
of regular instalments without any further default.
2. Learned counsel appearing for the respondents
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submitted that the outstanding arrears itself is more than
Rs.90,000/- and that the total arrears nearly Rs.3 lakhs.
However, considering the fact that the petitioner has got
an effective remedy against the proceedings as provided
under Section 17 (1) of the Act, and also considering the
fact that the petitioner has not raised any effective
objections against the demand under Section 13 (2), I am
not inclined to interfere on the merits of the case.
3. When the matter came up for admission, this
Court had granted an interim order subject to condition
of the petitioner remitting a sum of Rs.50,000/-. It is
conceded by both sides that the condition imposed has
already been complied with. However, considering the
totality of circumstances attendant in this case, I am
inclined to permit the petitioner to regularize the loan
account by paying the overdue amounts within a short
period.
4. In the result, the Writ Petition is disposed of
directing the respondents to keep all further proceedings
pursuant to Ext.P1 notice in abeyance, provided the
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petitioner remits the entire amounts outstanding less the
amount paid by virtue of the interim order, in 2 (two)
equal monthly instalments, falling due on or before
30.10.2010 and 31.11.2010. The petitioner shall also
remit regular instalments due for these two months along
with such payments. If the outstanding arrears is cleared
payment as directed above, the respondent shall permit
the petitioner to continue payment of future instalments
as per the original schedule.
5. It is made clear that on the event of default in
payment of any of the instalment as stipulated as above,
the respondent will be free to proceed with further steps.
It is also made clear that the relief granted as above will
be subject to the condition that the petitioner is
precluded from raising any subsequent challenge against
the proceedings, either by approaching this Court or any
other Forum.
C.K. ABDUL REHIM
JUDGE
dnc