IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 16TH NOVEMBER 2009 / 25TH KARTHIKA 1931 WP(C).No. 29596 of 2009(T) -------------------------- PETITIONER(S): --------------- 1. M/S. MAHALAKSHMI (REGISTERED FIRM), TAMIL SCHOOL STREET, CHALAI, THIRUVANANTHAPURAM, REP. BY ITS PARTNER. 2. S.GODANDRAJ, PARTNER, M/S. MAHALAKSHMI TAMIL SCHOOL STREET, CHALAI, THIRUVANANTHAPURAM, RESIDING AT 'GANGA', TAMIL SCHOOL STREET, CHALAI, THIRUVANANTHAPURAM. BY ADVS. SRI.M.RAMASWAMY PILLAI SRI.P.M.JOSEPH RESPONDENT(S): --------------- 1. UNION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, NEW DELHI. 2. THE AUTHORISED OFFICER, INDIAN OVERSEES BANK, KILLIPALAM, THIRUVANANTHAPURAM. 3. INDIAN OVERSEAS BANK, KILLIPALAM BRANCH, THIRUVANANTHAPURAM, REP. BY ITS BRANCH MANAGER. R1 BY ADV. SRI.T.P.M.IBRAHIM KHAN,ASST.SOLICITOR GENERAL R2 & R3 BYADV. SRI.P.B.SURESH KUMAR, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 29596 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 16th day of November, 2009 J U D G M E N T 1. Challenge in this writ petition is against proceedings initiated by the respondents 2 & 3 under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). First petitioner is a partnership firm to which 2nd petitioner is a partner. A business loan was availed by the firm from the 3rd respondent Bank to the tune of Rs.15 lakhs during the year 2002. Consequent to default committed in repayment, respondents 2 & 3 had initiated proceedings under the SARFAESI Act and the property was taken over possession on issuing notice under Section 13 (4), as evidenced by Ext.P10. 2. According to the petitioners they have effected remittance of about Rs.3 lakhs even after issuing Ext.P10 notice. Further contention is that eventhough the W.P.(C)No. 29596 of 2009 -2- petitioners have approached respondents 2 & 3 seeking reasonable time to pay off the entire liability such request was not acceded to. 3. This court through an interim order dated 20.10.2009 directed the petitioners to make payment of Rs.2 lakhs on or before 15.11.2009. It is reported that the said amount was already paid. In the statement filed on behalf of the respondents 2 & 3 it is averred that the balance as on 19.10.2009 is Rs.11,72,110/-, along with expenses and cost. It is noted that after crediting payment of Rs.2 lakhs the amount outstanding will be around Rs.9.75 lakhs at present. 4. Learned standing counsel appearing for respondents 2 &3 submitted that the business concern of the petitioners are in a position to afford payment of the liability, within a short period. On the other hand learned counsel for the petitioners seeks indulgence of this court in permitting reasonable time for effecting payment of the entire balance. W.P.(C)No. 29596 of 2009 -3- 5. Having considered rival submissions and facts and circumstances of the case, I feel that reasonable time can be granted to the petitioners to pay off the entire liability. 6. Therefore the writ petition is disposed of directing the petitioners to make payment of a further sum of Rs.2 lakhs on or before 15.12.2009. The respondents are directed to keep in abeyance further steps of recovery till such date. On payment of the said amount, the respondents shall issue a balance statement to the petitioners, after crediting all payments and after considering waiver of interest/default interest and expenses if any to the possible extent. The petitioners shall continue payment of the balance so intimated, in three (3) equal monthly installments thereafter, falling due on or before 15.01.2010 and on or before the 15th day of two succeeding months. 7. It is made clear that on the event of failure to pay any of the installments as stipulated as above, the respondents will be free to proceed with further steps W.P.(C)No. 29596 of 2009 -4- pursuant to the notices already issued, and on any such event the petitioners will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/