IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 31ST JANUARY 2011 / 11TH MAGHA 1932 WP(C).No. 36758 of 2010(T) -------------------------- CRMP.6260/2010 of CHIEF JUDL.MAGISTRATE, ERNAKULAM .................... PETITIONERS: -------------------- ANIL KUMAR, S/O.PAULOSE, VADASSERY HOUSE, "SREELAKAM", AYYAPPANKAVU, ERNAKULAM NORTH. BY ADV. SRI.SOORAJ T.ELENJICKAL SRI.M.A.JOSEPH MANAVALAN RESPONDENTS: ---------------------- 1. STATE BANK OF TRAVANCORE, REP. BY ITS AUTHORISED OFFICER, STATE BANK OF TRAVANCORE, KALOOR, COCHIN-17. 2. THE CHIEF MANAGER, STATE BANK OF TRAVANCORE, KALOOR BRANCH-COCHIN-17. ADV. SRI.SATHISH NINAN FOR R1 &2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. = = = = = = = = = = = = = WP(C).No.36758 of 2010-T. = = = = = = = = = = = = = Dated this the 31st January, 2011. J U D G M E N T A business loan availed by the petitioner from the respondent Bank was defaulted repayment. Consequently proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated and the immovable property, which is the secured asset, was sought to be taken over possession. The respondents have approached the Chief Judicial Magistrate Court invoking Section 14(1) and an Advocate Commissioner was appointed for taking over possession of the property. Ext.P7 is the notice issued by the Advocate Commissioner. It is the contention of the petitioner that even after initiation of the proceedings under the SARFAESI Act, the petitioner had remitted considerable amounts. It is further stated that the coercive steps were persued without considering the request made for WP(C).No.36758 of 2010-T. 2 settlement of the account by waiver of possible amounts. It is also mentioned that the proceedings initiated under the SARFAESI Act was challenged before the Debt Recovery Tribunal, but the application filed in this regard was not registered till date. Under the above circumstance the petitioner seeks interference of this Court to restrain the coercive steps of dispossession. 2. Pursuant to interim orders issued by this Court on 9.12.2010 and on 6.1.2011, the petitioner had effected a total payment of Rs.2,25,000/-. It is noticed that, even though the petitioner had approached the statutory authority, the application filed was not properly persued. Therefore, I am not impressed upon by any of the grounds raised in this writ petition in order to interdict with the proceedings. 3. Standing counsel appearing for the respondent Bank submitted that the loan account remains classified as 'NPA' from 2008 onwards and considerable amounts are WP(C).No.36758 of 2010-T. 3 still due for payment. Since the account remains in chronic default, the Bank is not favouring in permitting any settlement. 4. Confronted with the above situations, the learned counsel for the petitioner submitted that the petitioner is not intending to persue remedy before the Debt Recovery Tribunal and that he is relinquishing all challenges against the proceedings. On the other hand, a limited prayer was made to permit payment of the entire outstanding in a phased manner, within a reasonable time. 5. Considering the fact that the petitioner is relinquishing all challenges, I am of the view that indulgence can be shown in permitting the petitioner to pay off the entire liability within a short period, in instalments. Therefore, the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps for dispossession and sale of the property in question, subject to condition of the petitioner remitting the entire WP(C).No.36758 of 2010-T. 4 balance amount outstanding, along with future interest if any due, in 6 (six) equal monthly instalments, falling due on or before 28.2.2011 and on or before the last day of the succeeding months. 6. It is made clear that on the event of default in payment of any one of the instalments as stipulated above, the respondents will be free to proceed with further steps pursuant to the coercive steps already initiated. It is also made clear that the above relief is granted subject to condition that the petitioner is precluded from raising any subsequent challenges against the proceedings. C.K.ABDUL REHIM, (Judge) Kvs/-