IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 16TH DECEMBER 2009 / 25TH AGRAHAYANA 1931 WP(C).No. 31723 of 2009(I) ------------------------------------- PETITIONER(S): ----------------------- 1. K.S. AJITH, S/O.LATE SEKHARAN, KOONAMPLACKAL HOUSE,CHERAD, MALAMPUZHA P.O.,PALGHAT DISTRICT. 2. P. VASAVAN, S/O.VIJAYAN MENON, SATHYA VILLA, AMBATTUPALAYAM, CHITTUR, PALAKKAD, BLOCKS 26. BY ADV. SMT.P.K.RADHIKA RESPONDENT(S): ------------------------- 1. THE FEDERAL BANK LTD., REG.OFFICE ALWAYE KERALA, REPRESENTED BY ITS GENERAL MANAGER. 2. THE STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, GOVT.SECRETARIAT,THIRUVANANTHAPURAM. R2 BY GOVERNMENT PLEADER MR.MATHEW VADAKKEL. R1 BY ADV. MR.MOHAN JACOB GEORGE, SMT.P.V.PARVATHI, SMT.REENA THOMAS, MR.L.RAM MOHAN. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/12/2009,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 31723/2009-I APPENDIX PETITIONER'S EXHIBITS: EXT.P1(a): COPY OF THE PRESCRIPTION DATED 18/06/2005. EXT.P1(b): COPY OF THE MEDICAL REPORT DATED 13/05/2005 ISSUED FROM THE CMC VELLORE. EXT.P1(c): COPY OF THE DISCHARGE SUMMARY DATED 03/05/2005 ISSUED FROM THE CMC VELLORE. EXT.P1(d): COPY OF THE EXAMINATION REPORT DATED 06/05/2005. EXT.P1(e): COPY OF THE MEDICAL RESULT FROM 23 JUNE 2004 ISSUED BY THE CMC VELLORE. EXT.P1(f): COPY OF THE MEDICAL REPORT FROM THE CARDIOLOGY ECHO REPORT DATED 21/04/2005. EXT.P2: COPY OF THE REPRESENTATION DATED 10/12/2008. EXT.P3: COPY OF THE FIRST PETITIONER AND ISSUED THE SALE NOTICE, THE DATE OF SALE IS 20/10/2009. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A. TO JUDGE rs. C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 31723 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 16th day of December, 2009 J U D G M E N T 1. Challenge is against steps for sale initiated pursuant to Ext.P3 notice with respect to immovable property, which is the secured asset with respect to a Bank loan availed by the petitioners from the 1st respondent Bank. This court had granted an interim stay against the sale, through order dated 25.11.2009 which was subsequently extended. Learned standing counsel appearing for 1st respondent on instructions submitted that with respect to the loan transaction the Bank had already obtained a decree as early as in the year 2006 from Sub Court, Palakkad, wherein it was permitted to realize a sum of Rs.9,57,980/- only, along with future interest at the rate of 6% per annum. Therefore it is submitted that the petitioners are liable only to pay the said amount along with interest @ 6% from the date of decree. Further it is stated W.P.(C)No. 31723 of 2009 -2- that certain payments were effected by the petitioners after the decree. But since there was no substantial attempt to wipe off the liability, proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. It is further stated that pursuant to Ext.P3 notice the 1st respondent had already received tenders which is not opened in view of the interim order granted by this court. 2. The petitioners have not raised any substantial objection to the notice issued under Section 13 (2). Further it is noticed that they have not resorted to remedy by way of appeal under Section 17 (1). Therefore the dispute now raised against the proceedings could not be entertained in this writ petition. The directions sought for in this writ petition mainly pertains to compromise settlement of the loan account. According to the 1st respondent, by virtue of the decree the petitioners are already entitled for considerable reduction in the rate of interest. Therefore no W.P.(C)No. 31723 of 2009 -3- further waiver is permissible. 3. Having confronted with the above position learned counsel for the petitioners sought indulgence of this court in permitting them to pay off the entire liability within a reasonable time in installments. 4. Having considered facts and circumstances of the case, I am of the opinion that the petitioners can be provided with a chance to settle payment of the arrears in installments, within a reasonable time. Accordingly the writ petition is disposed of directing the petitioners to make payment of a sum of Rs.1,50,000/- (Rupees One lakh fifty thousand only) on or before 22.01.2010. The respondents are directed to keep in abeyance all further steps for sale till such date. If the amounts as directed above is paid, then the 1st respondent shall intimate the petitioners about the net balance payable, after giving credit to all payments made and after considering waiver of interest/penal interest to the possible extent. The petitioners shall continue payment of the said balance amount, in four (4) equal W.P.(C)No. 31723 of 2009 -4- monthly installments thereafter falling due on or before 22.02.2010 and on or before the 20th day of succeeding months. 5. 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 for sale, on the basis of tenders already received, and on 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/