IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 21ST OCTOBER 2009 / 29TH ASWINA 1931 WP(C).No. 18473 of 2009(D) -------------------------- PETITIONER(S): --------------- SAJAD.J., KAIKKARA, KUDAPPANAMMOODU P.O., TRIVANDRUM DISTRICT. BY ADV. SRI.S.MOHAMMED AL RAFI RESPONDENT(S): --------------- 1. FEDERAL BANK LTD., REPRESENTED BY CHIEF MANAGER (AUTHORISED OFFICER), REGIONAL OFFICE, FEDERAL TOWERS, M.G.ROAD, THIRUVANANTHAPURAM. 2. BRANCH MANAGER, FEDERAL BANK LTD., AMBOORI, THIRUVANANTHAPURAM. ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL) FOR R1 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J -------------------------------------- W.P.(C) NO. 18473 OF 2009 ---------------------------------------- Dated this the 21st day of October, 2009. J U D G M E N T 1. The petitioner along with his wife had availed a loan to the tune of Rs.7,00,000/- from the second respondent. The loan was availed in the year 2004 and immovable properties belonged to the petitioner was mortgaged as security for the loan transaction. According to the petitioner the period prescribed for repayment was 16 years and the petitioner had effected payment of considerable amounts. But thereafter repayment was defaulted due to various reasons beyond the control of the petitioner. Consequent to the default, the respondents have initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 ( SARFAESI) , and a coercive steps were initiated against the immovable property which is the secured assets. The petitioner submitted a representation to the Bank requesting to allow payment of the balance amount in 15 monthly installments. Since the request was not considered and since coercive steps are being perused, he has approached this court. 2. In compliance with the direction issued by this court through an interim order, the petitioner had paid an amount of Rs.3,00,000/- after W.P.(C) NO. 18473 OF 2009 2 instituting the writ petition. Learned standing counsel appearing for the respondents submit that the total balance outstanding after giving credit to the payments made, is about Rs. 4.85 lakhs. Since the loan amount is in chronic default, the bank is not favouring installment payments. 3. Having considered rival contentions and facts and circumstances of the case, I am of the opinion that no interference on merits with respect to the impugned proceedings is desirable, in view of the alternate remedy available to the petitioner. However, I am of the opinion that some indulgence can be shown in permitting the petitioner to pay off entire liability within a reasonable time in installments. 4. Accordingly the writ petition is disposed of directing the petitioner to pay an of amount of Rs.1,25,000/- on or before the 30th November, 2009. The respondent bank is directed to keep in abeyance further steps till such date. If payment is made as above, the respondent Bank shall intimate the petitioner about the total balance outstanding, after giving credit to all payments if and after considering waiver of interest/default interest to the possible extent. The petitioner shall continue payment of the balance amount so intimated, in four (4) equal monthly installments, starting from 31.12.2009 and on or before the last day of the succeeding three months. W.P.(C) NO. 18473 OF 2009 3 5. If payments as stipulated above is effected on the respective dates, the respondent Bank shall keep all further coercive steps pending, till such time. It is made clear that on the event of default in payment of any of the installment as stipulated above, the respondents will free to proceed with further steps already issued, pursuant to notices and on any such event the petitioner will be precluded from raising any further challenge against such proceedings before this court or before any other forum. C.K. ABDUL REHIM, JUDGE. pm W.P.(C) NO. 18473 OF 2009 4 W.P.(C) NO. 18473 OF 2009 5