IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 14TH MARCH 2011 / 23RD PHALGUNA 1932 WP(C).No. 7117 of 2011(L) ------------------------- PETITIONER(S): --------------- 1. T. VELU, AGED 69 YEARS, S/O. VELU, THOTTIYIL HOUSE, P.O. KAVANCHERRY, MANGALAM, MALAPPURAM DISTRICT. 2. P. LAKSHMI, AGED 59 YEARS,W/O.T.VELU, THOTTIYIL HOUSE,P.O. KAVANCHERRY, MANGALAM, MALAPPURAM DISTRICT. BY ADV. SRI.K.SHRIHARI RAO SMT.N.SHOBHA SRI.K.S.BALAKRISHNAN RESPONDENT(S): --------------- 1. THE AUTHORISED OFFICER, DEPUTY GENERAL MANAGER (P & D), MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD., MALAPPURAM - 673 505. 2. THE BRANCH MANAGER, MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD., TIRUR (MAIN) BRANCH, TIRUR, MALAPPURAM DISTRICT - 673 505. BY SRI.V.KRISHNAMENON - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 7117 of 2011(L) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : COPY OF THE NOTICE DTD.14.1.2011 OF THE 1ST RESPONDENT. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A TO JUDGE ab C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.7117 of 2011-L ---------------------------------------- Dated this the 14th day of March, 2011. J U D G M E N T A consumption loan availed by the 1st petitioner from the 2nd respondent Bank was defaulted in repayment. Property belonging to the petitioners, which were mortgaged for securing the loan, was proceeded against under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Ext.P1 is the notice issued under Rule 8(1) of the Security Interest (Enforcement) Rules 2002, intimating steps taken as contemplated under Section 13(4). According to the petitioners, the coercive steps are now being pursued without considering their request for permitting payment of the balance amount in a phased manner. The petitioners points out that the property in question is now notified for acquisition for the purpose of construction of National Highway and the entire amount of compensation which they will derive can be paid to the loan W.P(C) No.7117 of 2011-L 2 account. It is also contended that the petitioners are in acute financial stringencies, since they are proposing their daughter for marriage. 2. Heard; counsel appearing for the respondents. On the basis of instructions received, it is submitted that, the total outstanding as on 8.3.2011 is a sum of Rs.2,99,538/-. It is further submitted that the loan account is in chronic default and the petitioners could not raise any valid challenge against the proceedings initiated. 3. Considering the effective remedy provided under the statute, this Court may not be justified in interdicting with the proceedings. However, learned counsel for the petitioners made an appeal to this Court to permit payment of the balance outstanding in a phased manner within a reasonable time, on the basis of an undertaking that the petitioners are not pursuing any statutory remedy and that they are relinquishing all challenges. 4. Eventhough interference on merits is not proper, I am of the view that the petitioners can be permitted to wipe of the liability within a reasonable time, considering the W.P(C) No.7117 of 2011-L 3 relinquishments already made. 5. Accordingly, the writ petition is disposed of directing the respondents to keep in abeyance all further steps initiated pursuant to Ext.P1 notice, subject to condition of the petitioners remitting the entire balance outstanding along with interest and expenses if any due in 8 (eight) equal monthly instalments, falling due, on or before 31.3.2011 and on or before the last day of succeeding months. 6. It is made clear that on the event of default in payment of any of the instalments, the respondents will be free to proceed with further steps on the basis of Ext.P1 notice. It is further made clear that the above relief is granted subject to the condition that the petitioners are precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab