IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 20TH JUNE 2011 / 30TH JYAISHTA 1933 WP(C).No. 5471 of 2011(H) -------------------------------- PETITIONER(S): ------------------- K.V.VINOD, PROP.AYUR TRADERS, S/O.VELAYUDHAN, KANNAYIL HOUSE, VAZHAMPURAM P.O., PALAKKAD. BY ADV. SRI.E.A.BIJUMON RESPONDENT(S): --------------------- STATE BANK OF TRAVANCORE, THE AUTHORISED OFFICER, HOTEL GREEN PARK BUILDING, PALAKKAD - 678 595. R1 BY ADVS. SRI.T.SETHUMADHAVAN SRI.PUSHPARAJAN KODOTH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs W.P.(C). NO. 5471/2011 APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE SALE NOTICE ISSUED BY THE BANK DATED 29/10/2009 P2: COPY OF THE DEMAND NOTICE ISSUED BY THE BANK DATED 28/10/2010. P3: COPY OF THE ATTACHMENT NOTICE DATED 27/11/2010. RESPONDENT'S EXHIBITS:NIL /TRUE COPY/ P.A. TO JUDGE. svs C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.5471 of 2011 ------------------------------------------- Dated this the 20th day of June, 2011 J U D G M E N T ---------------------- The petitioner availed various credit facilities from the respondent Bank by mortgaging immovable property belonging to him and others, having a total extent of Rs.1 Acre 42 cents. Out of the immovable properties mortgaged, one item of properties having 13 cents, belongs to the petitioner and the remaining properties were belong to the guarantors. In this writ petition, the petitioner is seeking to set aside the sale conducted by the respondent Bank, with respect to the 13 cents of property belonging to the petitioner, under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The petitioner inter alia seeks direction for settling the liability by giving proper credit to payments already effected and by permitting the petitioner for payment of the balance W.P.(C).5471/11 -2- amount in instalments. 2. In a statement filed on behalf of the respondent it is mentioned that the 13 cents property was already taken over possession by invoking provisions of Section 14(1) as early as on 30.7.2010. Subsequently sale notice was published on 2.11.2010 and the bid was finalised in favour of one Sri.A. Thankappan, S/o. Arumughan, Pupilikkadu, Chithai, Palakkad District, for a sum of Rs.7.65 lakhs. It is stated that the sale certificate was already registered in favour of the purchaser, as early as on 17.1.2011. With respect to the contentions raised by the petitioner disputing correctness of the amounts demanded, it is mentioned that, as on the date when the debt was declared as NPA, there was a total outstanding of Rs.13,85,222/-. It is further stated that, including the amount of interest accrued till the date of sale, the total amount due was Rs.17,21,810/-. Out of the said amount the guarantors have remitted a sum of Rs.9,56,810/- and they got release of their respective properties. Therefore, the remaining amount was realised W.P.(C).5471/11 -3- through sale of the property belonging to the petitioner, having 13 cents. 3. It is contended by the respondent that all the steps under the SARFAESI Act was taken following strict compliance of the procedures prescribed and the coercive steps were initiated since the petitioner had failed to remit the amount due since the date of declaration of account as 'NPA' as on 30.11.2010. It is further submitted that the property in question was already transferred to the purchaser and delivery of possession has already been effected. Under such circumstances no relief can be granted in this writ petition is the contention. 4. It is pertinent to note that, eventhough the petitioner had admitted about the sale, the auction purchaser was not impleaded as a party in this writ petition. According to learned counsel, inspite of repeated approaches made, the identity of the auction purchaser was not revealed by the respondent Bank. It is the further complaint of the petitioner that the payment effected on W.P.(C).5471/11 -4- various dates have not been given credit and the respondent Bank had refused to supply any proper statement of accounts to the petitioner. 5. However, it is noticed that the petitioner has not chosen to challenge the proceedings initiated against the SARFAESI Act by approaching the statutory authority. It is also pertinent to note that the dispute raised with respect to sale conducted could not be entertained in this writ petition at a stage when every steps regarding confirmation of sales and transfer of property stand completed. However it is left open to the petitioner to seek appropriate statutory relief, if any available under law. 6. Accordingly the writ petition is dismissed without prejudice to the rights if any available to the petitioner to seek statutory remedy. C.K.ABDUL REHIM, JUDGE. okb