IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 23RD SEPTEMBER 2009 / 1ST ASWINA 1931 WP(C).No. 22104 of 2009(G) -------------------------- PETITIONERS: ------------------- 1. DR.K. VASUDEVAN NAIR, UDAYAPARABHA, K.P. ROAD, PALLIKUNNU P.O., KANNUR-4. 2. M.T. SHYLAJA,W/O. DR. K. VASUDEVAN NAIR, UDAYAPRABHA, K.P. ROAD, PALLIKUNNU P.O., KANNUR -4. BY ADV. SRI.C.E.UNNIKRISHNAN RESPONDENT: -------------------- THE AUTHORISED OFFICER AND CHIEF MANAGER, FEDERAL BANK LTD., NADAKKAVU WEST BRANCH, KOZHIKODE-673 002. BY ADV. SRI.MOHAN JACOB GEORGE SMT.P.V.PARVATHI SMT.REENA THOMAS SRI.L.RAM MOHAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 22104 of 2009(G) APPENDIX PETITIONERS' EXHIBITS: P1 : COPY OF THE NOTICE ISSUED BY THE RESPONDENT AND APPEARED IN MATHRUBHOOMI DAILY DATED 17.6.2009. P2 : COPY OF THE OBJECTION ISSUED BY THE PETITIONERS DATED 27.7.2009. RESPONDENTS' EXHIBITS: N I L // TRUE COPY // P.A. TO JUDGE. app/- C.K.ABDUL REHIM, J - - - - - - - - - - - - - - - - - - - - - - - W.P(C) No.22104 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 23rd day of September, 2009 J U D G M E N T 1 The petitioners are co-obligants for two loans availed from the respondent Bank, by two distinct persons. Properties belonging to the petitioners were mortgaged to secure the loans. Pursuant to default committed in repayment, the respondent had initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). The secured assets were now proceeded against, as per Ext.P1 notice issued. The petitioners filed Ext.P2 representation offering payments of the entire amounts due, provided reasonable time for payment in installment is granted. Complaint of the petitioner is that without taking into consideration of such request, now steps are being initiated for taking over possession of the secured assets and for sale in public auction. 2. Heard learned standing counsel for the respondent, who submitted on instructions that, an amount W.P(C) No.22104 of 2009 2 of more than Rs.13.5 lakhs is due in both the accounts, as on 12.6.2009, along with future interest. It is submitted that the loan accounts are in chronic default and inspite of repeated requests made to the petitioner and other co-obligants, no substantial amount was paid. 3. This court by virtue of an interim order dated 5.8.2009 directed the petitioner to make deposit a sum of Rs.1 lakh which was reported to have been paid by the petitioner. Learned counsel for the petitioner submits that if reasonable installments facility is granted they are prepared to pay off the entire liability. 4. Having considered the rival contention and facts and circumstances of the case, I am of the opinion that the same indulgence can be shown in the matter for permitting the petitioner to pay off the entire liability in installments, eventhough interference on merit is not at all desirable in view of the alternative remedy available. 5. Therefore the writ petition is disposed of directing the petitioners to make payment of an amount of Rs.3 lakhs W.P(C) No.22104 of 2009 3 on or before 31.10.2009, and the respondent Bank is directed to keep in abeyance further proceedings till such date. On payment of the above said amount, the respondent Bank will furnish a balance statement to the petitioner after crediting all payments made. The petitioner shall continue to pay the balance amount outstanding as per that statement along with future interest, in six equal monthly installments starting from 31.12.2009 and on or before the end of every succeeding months. 6. It is made clear that on the event of default in paying the initial amount or any of the installments, the respondent Bank will be free to proceed with further steps on the basis of the notices already issued, and on such event the petitioners are precluded from raising any subsequent challenge against the proceedings before this curt or before any other forum. C.K.ABDUL REHIM JUDGE app/-