IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 13TH JULY 2009 / 22ND ASHADHA 1931 WP(C).No. 17133 of 2009(J) -------------------------- PETITIONERS: --------------- 1. S.SAMEER,S/O.SULAIMAN.S., POKKANEZHATHU HOUSE,IRUMPOOZHIKKARA, UDAYANAPURAM-PO,VAIKOM,KOTTAYAM DISTRICT. 2. ALEEMA,W/O.SULAIMAN.S., POKKANEZHATHU HOUSE,IRUMPOOZHIKKARA, UDAYANAPURAM-PO,VAIKOM,KOTTAYAM DISTRICT. BY ADV. MR. P.VIJAYA BHANU MR. P.VENUGOPAL (1086/92) RESPONDENTS: --------------- 1. STATE BANK OF TRAVANCORE, REP.BY ITS CHIEF MANAGER, VAIKOM BRANCH,KOTTAYAM DISTRICT. 2. AUTHORIZED OFFICER (CHIEF MANAGER), STATE BANK OF TRAVANCORE, VAIKOM BRANCH,KOTTAYAM DISTRICT. BY ADV. MR. R.S. KALKURA, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 17133 of 2009 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 13th day of July, 2009 JUDGMENT The steps taken by the respondent Bank under the SARFAESI Act, whereby the property over which the security was created by depositing the title deed creating equitable mortgage thereon, was taken possession of, is subjected to challenge in the present Writ Petition. The case of the petitioners, who are none other than son and mother is that, a cash credit facility was availed from the Bank by the first petitioner in the year, 2004. Because of some unforeseen circumstances, the repayment could not be effected on time and pursuant to the steps taken under the Act, the property belonging to the petitioners was taken over by the Bank, availing the assistance provided by the Chief Judicial Magistrate's Court, Kottayam, on filing petition under Section 14 of the Act. The grievance of the petitioners is that, after taking over the possession as above, the petitioners have effected payment of Rs.1.7 lakhs on 19.4.2009 to the Bank as borne by Ext.P3 receipt and have approached this Court seeking for a direction to drop all further proceedings and to return the possession to the petitioners, assuring and undertaking that the outstanding liability will be cleared within a reasonable time. 2. The learned counsel for the Bank submits on instructions that, as on date a sum of about Rs. 7.8 lakhs with further interest and cost is WP (C) No. 17133 of 2009 : 2 : due, to clear the loan transaction. It is also pointed that, the possession of the property having already been taken over, the question of regularization of the loan does not arise; though further coercive proceedings by way of sale can be kept in abeyance, provided the petitioners prove their bona fides by effecting substantial payment towards the outstanding liability. 3. In the above facts and circumstances, the petitioners are directed to pay a sum of Rs. 2 lakhs within one month and the balance amount shall be paid in 4 installments to be effected on or before the 10th of the succeeding months commencing from September, 2009. Subject to the above, the coercive proceedings the SARFAESI Act, shall be kept in abeyance. It is made clear that, if the petitioners commit any default in effecting the payment of Rs. 2 lakhs within one month or the subsequent installments as specified, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump sum, from the stage where it stands now. This will be without prejudice to the right of the petitioners to approach the Bank by filing representation to permit them to reside in the building after effecting deposit of Rs. 2 lakhs as stated herein before. The Writ Petition is disposed of as above. P. R. RAMACHANDRA MENON, JUDGE kmd