IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 9TH OCTOBER 2009 / 17TH ASWINA 1931 WP(C).No. 25579 of 2009(N) -------------------------- PETITIONER(S): --------------- 1. ABDUL KHADER, XLIII/1184, KIZHAKKUMMURIPARAMBIL, S.R.M.ROAD, ERNAKULAM. 2. SULFATH ABDULKHADER, W/O.ABDUL KHADER, XLIII/1184, KIZHAKKUMMURIPARAMBIL, S.R.M.ROAD, ERNAKULAM. BY ADV. SRI.S. P.CHALY SRI.S.GOPAKUMAR RESPONDENT(S): --------------- 1. BANK OF INDIA, ZONAL OFFICE, KALOOR TOWERS, KALOOR-KADAVANTHARA ROAD, KOCHI-17, REPRESENTED BY ITS CHIEF MANAGER & AUTHORISED OFFICER. 2. THE CHIEF MANAGER & AUTHORISED OFFICER, BANK OF INDIA, ZONAL OFFICE, KALOOR TOWERS, KALOOR-KADAVANTHARA ROAD, KOCHI-17. 3. THE BRANCH MANAGER, BANK OF INDIA, EZHIKKARA BRANCH, ERNAKULAM. ADV.SRI.DEVAN RAMACHANDRAN FOR RESPONDENTS THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).25579/09 APPENDIX PETITIONER'S EXHIBITS:- EXT.P1:- COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DT.7.7.09 TO THE 1ST PETITIONER. EXT.P2:- COPY OF THE NOTICES ISSUED BY THE 2ND RESPONDENT DT.7.7.09 TO THE 2ND PETITIONER. EXT.P3:- COPY OF REPRESENTATION, ITS RECEIPT AND ITS ACKNOWLEDGEMENT CARD SUBMITTED BY THE PETITIONERS DT.19.8.09 RESPONDENT'S EXHIBITS:- NIL okb //True Copy// P.A. to Judge C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.25579 OF 2009 ------------------------------ Dated this the 9th day of October, 2009 J U D G M E N T ---------------------- 1. Petitioners are husband and wife. They are aggrieved by proceedings initiated by the respondents against them under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The loan in question, to the tune of Rs.10 lakhs, was availed for business purpose during the year 2007. Property belonging to the petitioners was mortgaged to secure the loan. Consequent to default committed in repayment, the Bank proceeded with steps for taking over possession and sale of the immovable property which is the secured asset. Exts.P1 and P2 notices under Section 13(2) was issued to the petitioners. The petitioners thereupon approached the Bank and submitted Exts.P3 and P4 representations seeking permission to grant reasonable time to wipe off the liability. Since the Bank has not acceded to such request, this writ petition is filed. 2. This court by virtue of an interim order dt.14.9.2009 directed the petitioners to make payment of an amount of Rs.1,50,000/- on or before 30.9.2009. It is reported that W.P.(C).25579/09-N 2 eventhough the amount could not be paid before the date stipulated, payment was effected on 8.10.2009. The petitioners have also filed I.A.12460/2009 seeking condonation of delay with respect to the payment made. 3. Heard learned standing counsel for the respondent Bank. It is submitted that the loan account is in chronic default and an amount of more than Rs.10.5 lakhs is due as on June 2009. Considering the perpetual default committed by the petitioners, the Bank is not favouring in granting further time for mitigating the arrears. 4. Having considered contentions on both sides and the facts and circumstances, I am of the view that some indulgence can be shown in the matter of permitting the petitioner to pay the balance amount in installments within a reasonable time. 5. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.1,50,000/- on or before 15.11.2009. Respondents are directed to keep in abeyance further steps till such date. If payment as above is made, the Bank will issue a balance statement to the petitioner after crediting all payments and after considering waiver of interest/penal interest to the possible extent. The petitioner shall continue payment of the balance amount so intimated, in 4 equal monthly installments starting from 15.12.2009 and on or W.P.(C).25579/09-N 3 before 15th day of the succeeding months. 5. It is made clear that on the event of default in payment of any of the amounts as stipulated above the respondents will be free to take further steps pursuant to notices already issued and on any such event the petitioner will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb