IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 3RD FEBRUARY 2010 / 14TH MAGHA 1931 WP(C).No. 2419 of 2010(B) ------------------------------------- PETITIONER: ------------------- M.S.SUDARSANAKUMAR, AGED 45 YEARS, S/O.N.MADHAVAN NAIR, 'SUDARSANAM', KUMARANELLORE P.O., KOTTAYAM-686 016. BY ADV. MR.A.F.SEBASTIAN. RESPONDENTS: ------------------------ 1. CITY UNION BANK LIMITED, REP.BY. THE AUTHORISED OFFICER/ ASST.GENERAL MANAGER, NO.149, T.S.R.(BIG) STREET, KUMBHAKONAM-612 001. 2. THE BRANCH MANAGER, THE CITY UNION BANK LIMITED, KOTTAYAM TOWN-686 001. 3. SUNILKUMAR.P., 38 YEARS, S/O.PARAMESHWARA PANICKER, RAJ VIHAR, S.H.M.P.O., KOTTAYAM. R1 & R2 BY MR. A. KUMAR, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/02/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. P.R.RAMACHANDRA MENON, J. =~=~=~=~=~=~=~=~=~=~=~=~=~=~=~=~= W.P.(C) No. 2419 of 2010 =~=~=~=~=~=~=~=~=~=~=~=~=~=~=~=~= Dated this the 3rd February, 2010 JUDGMENT The petitioner is challenging the steps taken by the respondent bank invoking the provisions under the SARFAESI Act for realization of the amount due under a loan transaction. The case of the petitioner is that he had availed a term loan of Rs.2 lakhs and a cash credit facility to the tune of Rs.3 lakhs from the respondent bank, creating security interest over the property, but due to some unforeseen circumstances, he could not honour the commitment and turned to be a defaulter, when the bank declared the loan account as “NPA” and proceeded with steps under the SARFAESI Act, which are under challenge in this writ petition. 2. The learned counsel for the respondent bank, on instructions, submits that, as on 1-10-2009, a sum of Rs.5.84 lakhs is due from the petitioner. It is also submitted that the request made by the petitioner to have time to wipe off the entire liability can be considered only on proving bona fides by effecting substantial payment towards the liability. W.P.(C) No. 2419/2010 2 3. The learned counsel for the petitioner submits that the petitioner had made arrangements to pay off the entire liability by sale of a portion of some other property. 4. Considering the facts and circumstances, the petitioner is directed to deposit a sum of Rs.1 lakh forthwith, at any rate within two weeks from today and the balance amount shall be satisfied within a period of three months thereafter. Subject to the above, the coercive steps for realization of the due amount shall be kept in abeyance. It is made clear that if any default is committed in satisfying the liability as above, the respondent bank is at liberty to proceed with the steps for realization of the entire amount in a lump sum. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON, JUDGE mn.