IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 21ST JUNE 2011 / 31ST JYAISHTA 1933 WP(C).No. 15404 of 2011(A) -------------------------- PETITIONER(S): --------------- SHIBU VARGHESE,AGED 47 YEARS, S/O.A.P.VARGHESE, ALUMOOTTIL HOUSE,WEST OTHARA PO KOTTOOR (V),THIRUVALLA TALUK,PATHANAMTHITTA DIST, ,NOW R/A. P.B.NO.42330,SHARJHA,REP.BY HIS POWER OF ATTORNEY HOLDER K.S.VIJAYAKUMAR,43 YRS,S/O.K.R.S.NAIR, INDRANEELAM,ERAVIPEROOR P.O.,THIRUVALLA BY ADV. SRI.R.SANTHOSH BABU RESPONDENT(S): --------------- 1. STATE BANK OF TRAVANCORE,REP.BY ITS MANAGING DIRECTOR, HEAD POST OFFICE, THIRUVANANTHAPURAM PIN-695001 2. AUTHORISED OFFICER/CHIEF MANAGER STATE BANK OF TRAVANCORE, REGIONAL OFFICE, KOTTAYAM-686001 3. STATE BANK OF TRAVANCORE,OTHERA BRANCH OTHERA, THIRUVALLA-684031 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 15404/2011 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : COPY OF POWER OF ATTORNEY DATED 19.08.2010. EXT.P2 : COPY OF NOTICE DATED 13.01.2011. EXT.P3 : COPY OF REPRESENTATION DATED 16.01.2011. EXT.P4 : COPY OF POSSESSION NOTICE DATED 1.4.2011 ISSUED BY 2ND RESPONDENT. EXT.P5 : COPY OF REPRESENTATION DATED 12.4.2011 BY THE PETITIONER. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A. TO JUDGE smvd C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 15404 of 2011 --------------------------------- Dated this the 21st day of June, 2011 JUDGMENT Consequent to default committed in repaying a personal loan availed by the petitioner from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated. Ext.P4 is the notice issued under Rule 8(1) of the Security Interest (Enforcement) Rules intimating about the steps taken under Section 13 (4) against the immovable property, which is the secured asset. 2. According to the petitioner, the default occurred only due to some unforeseen circumstances. The petitioner was employed abroad wherein he met with an accident and hence the repayment became irregular. It is contended that the coercive steps are now being pursued without acceding to the request made by the petitioner to permit payment of the balance amounts in a phased manner, within a reasonable time. 3. Heard; counsel appearing for the respondent Bank. WP(C) .15404/2011 2 It is submitted that the personal loan account in question is in serious default and an amount, nearly about Rs.14 lakhs is due, as on today. It is further submitted that apart from the personal loan the petitioner had also availed a housing loan, which is also in default. It is submitted that a civil suit was already filed for realisation of the amounts due under the said housing loan and there is already an order of attachment issued by the civil court against the very same property. Under the above mentioned circumstances the respondents are not favouring in permitting any extended period to the petitioner for paying off the liability. 4. Considering the alternative and effective remedy provided under section 17(1) of the SARFAESI Act, it may not be justified on the part of this court to interdict with the proceedings. However, learned counsel appearing for the petitioner, made an appeal to this court to permit payment of the balance amounts in a phased manner within a reasonable time, on the basis of a specific undertaking made to the effect that the petitioner is relinquishing all challenges and that he is also relinquishing rights if any available to invoke any statutory remedy. WP(C) .15404/2011 3 5. Considering the limited relief sought for, I am of the view that, eventhough interference on merits is not warranted, the petitioner can be permitted to pay off the entire liability in instalments within a reasonable time. 6. Accordingly, the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps of recovery initiated pursuant to Ext.P4 notice, subject to condition of the petitioner remitting the entire balance outstanding along with interest and other charges if any due, in 6 (six) equal monthly instalments, falling due on or before 30.8.2011 and on or before the last day of the succeeding months. In order to facilitate payment of the amounts as stated above, the respondent Bank will furnish a statement of accounts to the petitioner, as and when approached. 7. It is made clear that the restrictions imposed against the proceedings initiated under the SARFAESI Act will not stand in the way of the respondent Bank in taking appropriate steps for realisation of the amounts which is stated to be in default in the housing loan account. 8. It is further made clear that on the event of WP(C) .15404/2011 4 default committed in payment of any one of the instalments as stipulated above, the respondents will be free to proceed with further steps on the basis of the notices already issued, and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings . C.K.ABDUL REHIM,JUDGE pmn/ WP(C) .15404/2011 5