IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 1ST OCTOBER 2009 / 9TH ASWINA 1931 WP(C).No. 27679 of 2009(D) -------------------------- CMP.5383/2009 of C.J.M.COURT, ALAPPUZHA .................... PETITIONER(S): --------------- RITHU MOHAN, PULLAMPARA HOUSE, MUHAMMA P.O., ALAPPUZHA DISTRICT. BY ADV. SRI.JOBY CYRIAC RESPONDENT(S): --------------- 1. THE AUTHORISED OFFICER, THE ALAPPUZHA DISTRICT CO-OPERATIVE BANK LTD. HEAD OFFICE, ALAPPUZHA. 2. THE BRANCH MANAGER, THE ALAPPUZHA DISTRICT CO-OPERATIVE BANK LTD. MUHAMMA, ALAPPUZHA. ADV.SRI.P.K. VIJAYAMOHANAN, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/10/2009 , THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.27679 OF 2009 ------------------------------ Dated this the 1st day of October, 2009 J U D G M E N T ---------------------- 1. The petitioner had availed an industrial loan from the respondent Bank to the tune of Rs.5 lakhs during the year 2004. Since repayment in the loan account fell into huge arrears the Bank has proceeded against the secured assets of immovable property under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI Act). After issuance of notice as contemplated under Section 13(2) and 13(4) of the said Act, the Bank had approached the Chief Judicial Magistrate Court, Alappuzha under Section 14(1) of the Act. As evidenced by Ext.P2 order the Chief Judicial Magistrate had appointed an Advocate Commissioner to take over possession of the property. It is evident from Ext.P3 notice that the Advocate Commissioner had demanded the petitioner to surrender possession forthwith. Eventhough various contentions against the proceedings were raised, learned counsel for the petitioner submitted that he is ready and willing to pay off the entire liability provided installment facility is granted with a reasonable time. W.P.(C).27679/09-D 2 2. Heard standing counsel for respondent Bank, who on the basis of instructions submitted that, the amount outstanding as on today is more than Rs.7,15,000/-. Since the petitioner is a chronic defaulter coercive steps are now being initiated. Learned counsel opposed granting of installment facility for mitigating the arrears. 3. Having considered rival contentions and facts and circumstances of the case, I am of the opinion that indulgence can be shown in the matter of permitting the petitioner to pay off the entire liability in installment within a reasonable time. 4. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.1,50,000/- on or before 31.10.2009. The respondents are directed to keep in abeyance further steps pursuant to Ext.P2 order till such time. On payment of the above said amount the Bank will furnish a balance statement to the petitioner after crediting all such payments and after considering waiver of interest or default interest to the possible extent. The petitioner shall continue to pay the balance outstanding as per the statement along with future interest if any due, in 5 (five) equal monthly installments starting from 30.11.2009 and on or before the last day of every succeeding months. 5. It is made clear that on the event of failure in payment W.P.(C).27679/09-D 3 of any of the installments the respondent Bank will be at liberty to take further steps pursuant to Ext.P2 order and P3 notice already issued. It is also made clear that the benefit granted under this judgment is subject to condition that the petitioner is precluded from raising any further challenge against proceedings before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb