IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 25TH MAY 2011 / 4TH JYAISHTA 1933 WP(C).No. 5069 of 2011(G) -------------------------------- PETITIONER(S): ------------------- JAMESKUTTY, S/O. PETER, THEKKEPALACKAL BEACH, VADACKAL, THIRUVAMBADY P.O., ALAPPUZHA. BY ADV. SRI.B.PRAMOD RESPONDENT(S): -------------------- 1. THE AUTHORISED OFFICER, THE STATE BANK OF TRAVANCORE, ZONAL OFFICE, PANAMPALLY NAGAR, KOCHI-682 036. 2. THE STATE BANK OF TRAVANCORE, PAZHAVEEDU BRANCH, ALAPPUZHA, REPRESENTED BY ITS MANAGER, PIN-688 001. 3. STATE OF KERALA, REPRESENTED BY ITS SECRETARY, FISHERIES & PORTS DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695 001. 4. THE KERALA STATE FISHERMEN DEBT RELIEF COMMISSION, THIRUVANANTHAPURAM, REPRESENTED BY IT'S SECRETARY, PIN-695 001. R1 & 2 BY ADV. SRI.SATHISH NINAN R3 & R4 BY GOVT.PLEADER SRI.BIJOY CHANDRAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25/05/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs C.K.ABDUL REHIM, J. ------------------------------- W.P.(C).No.5069 of 2011 ------------------------------- Dated this the 25th day of May, 2011. J U D G M E N T Proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), consequent to default committed by the petitioner in repaying loan availed from respondents 1 and 2, is the subject matter of challenge in this writ petition. 2. As per the averments contained in the writ petition, the loan in question was availed for purchasing fishing equipments. Contention of the petitioner is that by virtue of the provisions contained in the Kerala State Fishermen Debt Relief Commission Act, 2008 he is entitled for waiver of various amounts due under the loan account. According to the petitioner, he had already approached the Commission constituted under the above said Act and the application filed in this regard is pending disposal. Petitioner relies on Ext.P3 order issued by the State 2 W.P.(C).No.5069 of 2011 Government declaring moratorium with respect to recovery steps for realisation of loans coming within the purview of the above said Act. Under the above premise, the sale notice published as per Ext.P4 was challenged. 3. In the statement filed on behalf of 1st respondent it is disputed that the loan in question was availed for purchasing fishing equipments. According to the 1st respondent the loan was availed for the purpose of running a provision store under the 'traders special scheme'. Copy of the loan application as well as the sanctioning order are produced along with the statement. It is revealed that the loan was applied and sanctioned for conducting business of provision and stationery, on the basis of the hypothecation of the stock of the business and mortgage of the property in question. Under such circumstances, the contention with respect to eligibility under the Debt Relief Act is unsustainable, is the contention. 4. Considering the facts as stated above, it is evident that the petitioner himself had applied for the loan for the 3 W.P.(C).No.5069 of 2011 purpose of running business of provision and stationery. Going by terms of Ext.P3 as well as the provisions of the Debt Relief Act it is clear that, loans availed for such business will not come within the purview of the said Act. Hence, I am of the view that challenge raised by the petitioner is unsustainable. 5. However, learned counsel for the petitioner made an appeal to this Court to direct the respondents to refrain from proceeding with any further coercive steps, on the basis of an offer that the petitioner will pay off the entire liability within a reasonable time in a phased manner. Such an appeal is made on the basis of a specific undertaking that the petitioner is relinquishing all challenges and also relinquishing rights if any to invoke statutory remedy. 6. Eventhough interference on merits is not warranted, I am of the view that the limited prayer for permitting payment of the entire amount in instalments can be considered. 7. Accordingly, the writ petition is disposed of 4 W.P.(C).No.5069 of 2011 directing the respondents to keep in abeyance all further steps initiated under the SARFAESI Act, provided the petitioner remits the entire balance outstanding along with interest and expenses if any due, in 6 (six) equal monthly instalments, falling due on or before 15.6.2011 and on or before the 15th day of the succeeding months. 8. It is made clear that on the event of default in payment of any one of the instalments as stipulated above, the respondents will be free to proceed with further steps, on the basis of the notice already issued and on such event the petitioner will be precluded from raising any subsequent challenge. C.K.ABDUL REHIM, Judge ami/