IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 3RD FEBRUARY 2011 / 14TH MAGHA 1932 WP(C).No. 2817 of 2011(B) ------------------------- PETITIONER:- ------------------ K.V.UBAIDULLAH, AGED 37 YEARS, S/O.VEERAN HAJI, KAYALUMVAKKATH HOUSE, PARIYAPURAM, ANGARIPURAM,PERINTHALMANNA MALAPPURAM DISTRICT BY ADV. SRI.ZAKEER HUSSAIN SMT.K.A.SANJEETHA RESPONDENTS:- --------------------- 1. THE AUTHORISED OFFICER, STATE BANK OF TRAVANCORE,PERINTHALMANNA 2. STATE BANK OF TRAVANCORE, PERINTHALMANNA,REP.BY ITS CHIEF MANAGER 3. K.V.ABOOBACKER, S/O.VEERAN HAJI,PROPRIETOR, K.V.STEELS, JUBILEE JUNCTION, CALICUT, PERINTHALMANNA ADV. SRI.T.SETHUMADHAVAN FOR R1 & R2 SRI.PUSHPARAJAN KODOTH FOR R1 & R2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. = = = = = = = = = = = = = WP(C).No.2817 of 2011-B. = = = = = = = = = = = = = Dated this the 3rd February, 2011. J U D G M E N T Proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) against the immovable property belongs to the petitioner, which is the secured asset as far as a loan availed by the 3rd respondent from respondents 1 and 2, is challenged in this writ petition. The petitioner is the guarantor with respect to the loan transaction and the property was mortgaged for securing the loan. Consequent default committed by the 3rd respondent in repayment, steps were initiated under the SARFAESI Act. Invoking Sec.14(1) of the Act, the respondents approached the Chief Judicial Magistrate Court and an Advocate Commissioner was appointed to take over possession of the property. Ext.P2 is the notice issued by WP(C).No.2817 of 2011-B. -: 2 :- the Advocate Commissioner. 2. According to the petitioner, the coercive steps were initiated without considering request made by him to permit regularisation of the account on the basis of an offer made for payment of the amounts in default within a short time. 3. In a statement filed on behalf of respondents 1 and 2 it is mentioned that the industrial unit for which the cash credit facility was availed is remaining defunct and there is an outstanding balance of around to Rs.43.50 lakhs. It is further mentioned that, out of the two items of property mortgaged, one item was released on an earlier occasion on the petitioner making payment of Rs.27 lakhs. Under such circumstances the contention is that, the cash credit facility could not be revived and the request made by the petitioner could not be allowed. 4. Considering the fact that the petitioner has not chosen to avail the alternate remedy provided under the SARFAESI Act, I am of the view that interference by this WP(C).No.2817 of 2011-B. -: 3 :- court may not be justified. However, confronted with the above situation, learned counsel for the petitioner made an appeal to this Court to permit the petitioner to pay off the entire liability in a phased manner within a time limit, on the basis of the undertaking that the petitioner is relinquishing all challenges raised against the proceedings and also relinquishing rights if any available to pursue the statutory remedy. 5. Considering the situation as stated above, I am of the opinion that, eventhough interference on merits is not desirable, indulgence can be shown in permitting payment of amounts due in a phased manner within a reasonable time in view of the relinquishments made. 6. Accordingly, the writ petition is disposed of directing respondents 1 and 2 to keep in abeyance all further coercive steps for dispossession and sale of the property subject to condition of the petitioner remitting the entire amounts outstanding along with interest and expenses if any due in eight (8) equal monthly instalments, WP(C).No.2817 of 2011-B. -: 4 :- falling due on or before 28.2.2011 and on or before the last day of the succeeding months. 7. It is made clear that on the event of default in payment of any one of the instalments as stipulated above, the respondents will be free to proceed with further steps. The above relief is granted subject to condition that the petitioner is precluded from raising any subsequent challenge against the proceedings. C.K.ABDUL REHIM, (Judge) Kvs/-