IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR TUESDAY, THE 23RD AUGUST 2011 / 1ST BHADRA 1933 WP(C).No. 22531 of 2011(N) -------------------------------- PETITIONER: -------------- DERICK 'D' COUTH,KANDENGATT HOUSE, EDAYAPURAM KEEZHMADU,NEAR SNDT TEMPLE, ALUVA, ERNAKULAM 683 101. BY ADV. SRI.AJITH KRISHNAN RESPONDENTS: ------------------ 1. THE FEDERAL BANK LTD., REP.BY AUTHORISED OFFICER/ASSISTANT GENERAL MANAGER, ALUVA,ERNAKULAM 683 001. 2. BRANCH MANAGER,FEDERAL BANK LTD., ERNAKULAM NORTH, KOCHI-18. BY ADVS. SRI.A.ANTONY FOR R2 SMT.LEELAMMA ANTONY FOR R2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.22531/2011 A P P E N D I X PETITIONER'S EXHIBITS: EXT. P1 : COPY OF NOTICE DTD. 15.10.10 UNDER SECTION 13(2) OF SARFAESI ACT ISSUED BY R1. EXT. P2 : COPY OF LETTER DTD. 11.8.11 ISSUED BY ADVOCATE COMMISSIONER. RESPONDENT'S EXHIBITS: NIL. // True Copy // P.A. to Judge. smp T.R. RAMACHANDRAN NAIR, J. --------------------------------------- W.P.(C) No.22531 OF 2011 --------------------------------------- Dated this the 23rd day of August, 2011. J U D G M E N T The petitioner herein had availed a loan namely, Federal Home term loan for an amount of Rs.17,50,000/- for meeting his business requirements. An extent of 4.05 Ares of land with a residential building has been mortgaged as security for the loan. The loan was availed on 09.11.2009 and the period of the loan is seven years, for repayment. It is stated that he is the Proprietor of an Industrial Training Institute. What is under challenge herein is the proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). 2. The respondent Bank has approached the Chief Judicial Magistrate Court under Section 14 of the SARFAESI Act to get vacant possession of the secured asset and an Advocate Commissioner has been appointed who has issued a letter as per Ext.P2 directing to grant vacant possession of the building on W.P.(C) No.22531/2011 2 20.08.2011. 3. Learned counsel for the respondent Bank submitted that more than 19 lakhs is due in the loan transaction and apart from that 4.3 lakhs is due towards arrears itself. Learned counsel for the petitioner submitted that the petitioner is prepared to pay the arrears, if some time is granted by this Court, in instalments so that the loan can be regularised. Learned counsel for the Bank submitted that the petitioner has already defaulted the payment and therefore the Bank was compelled to initiate proceedings under the SARFAESI Act. 4. Having regard to the fact that the period of repayment of the loan is seven years and the defaulted amount so far will be more than 4.3 lakhs, I dispose of this writ petition with the following directions:- The petitioner will clear off the arrears in monthly instalments within a period of three months from today. He will have to remit the normal instalments also along with the same. The amount will be paid in equal instalments. If the entire arrears are thus paid, proceedings under the SARFAESI Act will W.P.(C) No.22531/2011 3 be withdrawn by the Bank. If default is caused by the petitioner, then it is upto the Bank to proceed with the matter. The first instalment will be paid on or before 15.09.2011 and the subsequent instalments will be paid on or before 15th of every month. The proceedings pending before the Chief Judicial Magistrate in C.M.P.No.1894/2011 will be adjourned for a period of four months. No costs. T.R. RAMACHANDRAN NAIR JUDGE smp