IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 9TH NOVEMBER 2009 / 18TH KARTHIKA 1931 WP(C).No. 30942 of 2009(K) --------------------------------------- CMP.NO.1130/2009 OF CHIEF JUDICIAL MAGISTRATE COURT, THALASSERY. .................... PETITIONERS: --------------------- 1. P.O. PREMAN,REENA NIVAS, VALIYAVEETTIL,TAR ROAD, MUNDAYAD, KANNUR. 2. REENA, W/O.PREMAN, R/AT -DO- -DO-. BY ADVS. MR.T.SETHUMADHAVAN, MR.PUSHPARAJAN KODOTH, MR.K.JAYESH MOHANKUMAR, SMT.VANDANA MENON, SMT.ANJU P.NAIR. RESPONDENTS: ------------------------ 1. UNION BANK OF INDIA, REGIONAL OFFICE, EAST HILL ROAD, KOZHIKODE. 2. UNION BANK OF INDIA, CHOVVVA BRANCH, WESCO BUILDING, CHOVVA, KANNUR-670 006. 3. UNION BANK OF INDIA, KANNUR BRANCH, HAJI BUILDING, FORT ROAD, KANNUR-670 001. R1 TO R3 BY MR. A.S.P. KURUP, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/11/2009,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.30942 OF 2009 ------------------------------ Dated this the 9th day of November, 2009 J U D G M E N T ---------------------- 1. Matter arises under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The 1st petitioner had once approached this court and in Ext.P1 Judgment this court had shown indulgence. He was directed to pay 1/3rd of the amount within one month and on such payment he was permitted to approach the Bank seeking eligible concession, and further the Bank was directed to consider such representation if any submitted. The sale proposed at that time was directed to be deferred till a decision as directed is taken by the Bank. 2. According to the petitioners the Bank has filed an O.A. before the Debt Recovery Tribunal seeking realisation of an amount of Rs.62,37,447/-. It is also submitted that two items of properties were already sold for about Rs.11 lakhs. Present grievance of the petitioners is against proceedings initiated before the Chief Judicial Magistrate invoking Section 14 of the SARFAESI Act. 3. Learned standing counsel for the respondent Bank W.P.(C).30942/09-K 2 submitted that eventhough Ext.P1 judgment was issued as early as in April 2008, the petitioners have failed to comply with the conditions stipulated therein. Altogether 4 items of properties were mortgaged and 2 items were already sold. Out of the remaining 2 items, one is a property having 15 cents, but the reserve price fixed for the same is Rs.3 lakhs only. The 4th item is the residential property which is now being proceeded against under Section 14(1) of the Act. It is submitted that the balance outstanding at present is more than Rs.62 lakhs. Therefore unless the petitioners make substantial payments, the proceedings could not be kept in abeyance, is the contention. 4. Learned counsel for the petitioners submitted that the property which is now being proceeded against before the Chief Judicial Magistrate Court, is the residential house, and if the property is taken over possession and sold in public auction, that will put them to severe prejudice. According to the petitioners, they have approached the Bank seeking private sale, but such request has not been acceded to. On the other hand, learned counsel for the respondents submitted that, if the petitioner can find out any buyer for either of the properties, they can either participate in the public auction or the petitioner can approach for negotiating private sale with the Bank. It is noticed that the relevant Rules permit private sale of the secured assets and the W.P.(C).30942/09-K 3 Bank can enter into such private sale if there are reasonable offers. 5. Having considered the facts and circumstance of the case, I am of the opinion that since the amount outstanding payment is too high when compared with the upset price fixed for the properties, the actions which are now being pursued cannot be interfered with in any manner. Therefore the writ petition is liable to be dismissed. It is made clear that if the petitioner approaches with any reasonable offer for effecting private sale, the same shall be considered by the Bank. The writ petition is disposed of with the above observations. C.K.ABDUL REHIM, JUDGE. okb