IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 31ST JANUARY 2011 / 11TH MAGHA 1932 WP(C).No. 37873 of 2010(H) -------------------------- PETITIONERS:- -------------------- 1. K.RAGHU, AGED 51 YEARS, S/O.KRISHNAN, PADINJAREPARAMBIL HOUSE, THOTTIPAL VILLAGE, MUKUNDAPURAM TALUK. 2. K.MANI, AGED 53 YEARS, S/O.KRISHNAN, PADINJAREPARAMBIL HOUSE, THOTTIPAL VILLAGE, MUKUNDAPURAM TALUK. 3. SHEEBA, AGED 40 YEARS, W/O.K.MANI, PADINJAREPARAMBIL HOUSE, THOTTIPAL VILLAGE, MUKUNDAPURAM TALUK. 4. BIJI, AGED 38 YEARS, W/O.K.RAGHU, PADINJAREPARAMBIL HOUSE, THOTTIPAL VILLAGE, MUKUNDAPURAM TALUK. BY ADV. SRI.P.K.SAJEEV RESPONDENTS:- --------------------- 1. THE AUTHORISED OFFICER, THE THRISSUR DISTRICT CO-OPERATIVE BANK LTD., KOVILAKATHUMPADAM, THIRUVAMBADI P.O., THRISSUR, PIN 680022. 2. THE BRANCH MANAGER, THE THRISSUR DISTRICT CO-OPERATIVE BANK LTD., PUDUKKAD BRANCH, P.O. PUDUKKAD, THRISSUR, PIN 680301. BY STANDING COUNSEL SRI.P.C.SASIDHARAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. = = = = = = = = = = = = = WP(C).No.37873 of 2010-H. = = = = = = = = = = = = = Dated this the 31st January, 2011. J U D G M E N T 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). The first petitioner availed a loan from the respondent Bank, to which petitioners 2 to 4 were guarantors. Consequent to default committed in repayment, the account was classified as 'NPA' and steps were initiated against immovable property which was the secured asset. Ext.P2 demand notice was issued under Section 13(2). It is stated that, consequently, intimation regarding taking over the property under Sec.13(4) was also issued. 2. According to the petitioners, considerable payments were effected in the loan account and the coercive steps are now being persued without considering WP(C).No.37873 of 2010-H. 2 their request for permitting payment of the balance amount within a reasonable period. Hence the petitioners seek interference of this Court. 3. By virtue of an interim order issued by this Court the petitioners have paid a sum of Rs.50,000/-. It is submitted by the learned counsel for the respondent Bank that the loan in question was availed in the year 2006 and the period of repayment stipulated was 100 months. Since there was chronic default in the repayments, the loan in question was classified as 'NPA' in the year 2010 and steps under the SARFAESI Act was initiated. It is mentioned that even after adjusting all payments made there is still outstanding of an amount more than Rs.1.30 lakhs. 4. Considering the fact that the petitioners have not chosen to avail remedy provided under Sec.17(1) of the Act, I am of the opinion that interference of this Court to interdict with the proceedings is not justified. However the learned counsel for the petitioners requested for indulgence WP(C).No.37873 of 2010-H. 3 in permitting payment of the balance outstanding in a phased manner, within a reasonable time, on the basis of an undertaking made to the effect that the petitioners are relinquishing all challenges against the proceedings and that they are not intending to invoke any statutory remedy. 5. Considering the limited prayer, I am of the view that the petitioners can be permitted to pay off the liability in instalments within a reasonable time, especially because of the fact that they had relinquished all challenges. 6. Therefore, the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps for dispossession and sale of the property in question, provided the petitioners remit the entire balance outstanding along with future interest and expenses if any due, in 5 (five) equal monthly instalments falling due on or before 15.3.2011 and on or before the 15th day of the succeeding months. 7. It is made clear that on the event of default in WP(C).No.37873 of 2010-H. 4 payment of any one of the instalments as stipulated above, the respondents will be free to proceed with further steps pursuant to the notices already issued. It is also made clear that the above relief is granted subject to condition that the petitioners are precluded from raising any subsequent challenges against the proceedings. C.K.ABDUL REHIM, (Judge) Kvs/-