IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 30TH NOVEMBER 2009 / 9TH AGRAHAYANA 1931 WP(C).No. 30571 of 2009(N) ------------------------------------------ PETITIONER(S): -------------------- 1. P.G.BABU, S/O.GOPALAN, AGED 45 YEARS, BUSINESS, POMAKATTU HOUSE, VARANADU P.O., KOTHAMANGALAM VILLAGE, CHERTHALA TALUK. 2. LATHA K.M., W/O.BABU, AGED 45 YEARS, POMAKATTU HOUSE, VARANADU P.O., KOTHAMANGALAM VILLAGE, CHERTHALA TALUK. BY ADV.MR.DENY JOSEPH RESPONDENT(S): -------------------------- 1. DHANALAKSHMI BANK, CHERTHALA BRANCH, MAIN ROAD, CHERTHALA, REPRESENTED BY ITS MANAGER. 2. DHANALAKSHMI BANK, ZONAL OFFICE, ELIZABETH ALEXANDER, MEMORIAL BUILDING, MARINE DRIVE, ERNAKULAM, REPRESENTED BY ZONAL MANAGER. BY ADV. MR.C.K.KARUNAKARAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: tss C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 30571 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 30th day of November, 2009 J U D G M E N T 1. Challenge in this writ petition is against the proceedings initiated by the respondent Bank under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Since the proceedings is only at the stage of notice under Section 13 (2), it is not proper for this court to interfere with the matter, at this stage. 2. However, when the writ petition came up for consideration this court directed the petitioners to make payment of an amount of Rs.7,50,000/- (Rupees Seven lakh fifty thousand only), through interim order dated 28.10.2009. It is reported that the condition has already been complied with and the said amount was remitted on 17.11.09. W.P.(C)No. 30571 of 2009 -2- 3. Learned counsel for the petitioners seeks a limited prayer for directing the respondent Bank to permit payment of the entire balance outstanding in installments, within a reasonable time. 4. Learned standing counsel appearing for respondents on the basis of instructions submitted that, altogether there are three loan accounts in default. The balance outstanding in those accounts are Rs.14,48,475.06/-, 12,46,168.01/-, 2,855.25/- respectively. It is also admitted that even before approaching this court the petitioners had effected payments in the loan accounts. But since the accounts are in default and is categorized as NPA and proceedings under the SARFAESI Act was initiated. 5. Having considered rival submission and facts and circumstances of the case, I am of the opinion that if the petitioners close one of accounts wherein the balance outstanding is only Rs.2,855.25/- forthwith, the amounts outstanding in the other two loan accounts can be permitted W.P.(C)No. 30571 of 2009 -3- to be paid in installments, within a reasonable time. 6. Accordingly the writ petition is disposed of directing the petitioners to close the loan account in which the balance outstanding is Rs.2,855.25/- only, within a period of two weeks from today. The petitioners are further directed to make payment of an amount of Rs.5,00,000/- (Rupees Five lakhs only) on or before 31.1.2010 towards arrears in the other two loan accounts. The respondents are directed to keep in abeyance further coercive steps till such date. If the petitioners make payment of the amount as stipulated above, the respondent Bank shall issue a balance statement to the petitioners showing the net amount outstanding, after crediting all payments and after considering waiver of interest/default interest and expenses if any possible. The petitioners shall continue payment of the balance amount so intimated along with future interest in six (6) equal monthly installments falling due on or before 28.2.2010 and on or before the last day of succeeding five (5) months. W.P.(C)No. 30571 of 2009 -4- 7. It is made clear that on the event of failure to pay any of the installments as stipulated as above, the Bank will be free to proceed with further steps pursuant to the notices already issued, and on any such event the petitioners will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/