IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 6TH NOVEMBER 2009 / 15TH KARTHIKA 1931 WP(C).No. 27725 of 2009(I) -------------------------- PETITIONER(S): --------------- K.SURYA DAS, AGED 46 YEARS, S/O.KUMARAN, CHAKKANATTU HOUSE, KURUPPANKULANGARA P.O., CHERTHALA. BY ADV. SRI.A.F.SEBASTIAN RESPONDENT(S): --------------- 1. DHANALAKSHMI BANK, DHANALAKSHMI BUILDINGS, NEAR AR CAMP OFFICE, MARINE DRIVE, ERNAKULAM-682 031. 2. THE RESERVE BANK OF INDIA, REPRESENTED BY ITS GOVERNOR, CENTRAL OFFICE, MUMBAI-400 001. 3. UNION OF INDIA, REPRESENTED BY THE SECRETARY TO THE GOVERNMENT, MINISTRY OF BANKING AFFAIRS, NEW DELHI. 4. BINDHU, W/O.K.SURYA DAS, CHAKKANATTU HOUSE, KURUPPANKULANGARA P.O., CHERTHALA. R1 BY ADV. SRI.C.K.KARUNAKARAN R3 BY ASST. SOLICITOR GENERAL SRI. T.P.M. IBRAHIM KHAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 27725 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 6th day of November, 2009 J U D G M E N T 1. The petitioner had availed working capital loan from the 1st respondent Bank, to the tune of Rs.3 lakhs, during the year 2008. According to the petitioner, the loan was agreed to be repaid within a period of seven years in equal monthly installments of Rs.7,500/- each. Since repayments became irregular, the Bank categorized the loan account under NPA and initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) against the immovable property mortgaged which is the secured assets. Ext.P2 notice was issued under Section 13 (2) of the SARFAESI Act for which the petitioner submitted Ext.P3 objections. 2. It is submitted by the standing counsel appearing for the 1st respondent Bank that the objection has already W.P.(C)No. 27725 of 2009 -2- been considered and it is stand rejected through letter issued as per Ext.R1 (a) dated 01.10.2009 and the petitioner was directed to clear the arrears within 15 days. 3. Eventhough various grounds based on Ext.P4 circular of the Reserve Bank Of India, are raised challenging the proceedings, learned counsel appearing for the petitioner submits that the petitioner is ready and willing to pay off the entire liability within a reasonable time in installments. Since the loan account is in chronic default, the respondent Bank is not favoring permitting of prolonged period for clearing the arrears. 4. Having considered rival contention and facts and circumstances of the case, I am of the opinion that some indulgence can be shown in the matter in permitting the petitioner to pay off the entire liability in installments. 5. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.1 lakh on or before 15.12.2009. The respondents are directed to keep in abeyance further coercive steps till such W.P.(C)No. 27725 of 2009 -3- date. If the amount as directed above is paid by the petitioner, the respondent Bank will furnish a balance statement showing the total amount outstanding, after crediting all payments and after considering waiver of interest/default interest, if any, to the possible extent. The petitioner shall continue to pay the balance amount so intimated in three (3) equal monthly installments falling due on or before 15.01.2010 and on or before the 15th day of two succeeding months. 6. It is made clear that on the event of default in payment of any of the installments as stipulated above, the respondents will be free to take further steps pursuant to the notices already issued and on such event the petitioner will be precluded from raising any further challenge against the proceedings before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/