IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 3RD SEPTEMBER 2010 / 12TH BHADRA 1932 WP(C).No. 24917 of 2010(L) -------------------------- PETITIONER(S): --------------- R.SANTHAKUMARI,AGED 54 YEARS, W/O.THYAGEESAN PILLAI,SANTHI VIHAR,THEKKEVILA PO, KOLLAM-16,PROPRIETRIX,M/S.OLYMPIC DEALERS, 191/XVII, MAIN ROAD, KOLLAM. BY ADV. SRI.V.V.RAJA SRI.R.RANJITH RESPONDENT(S): --------------- 1. THE STATE BANK OF TRAVANCORE, REGIONAL OFFICE,THIRUVANANTHAPURAM, REPRESENTED BY ITS REGIONAL MANAGER. 2. AUTHOPRIZED OFFICER, THE CHIEF MANAGER, STATE BANK OF TRAVANCORE, CIVIL STATION,KOLLAM. STANDING COUNSEL SRI.R.S. KALKURA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/09/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J ------------------------------------ WP(C) NO. 24917 OF 2010 -------------------------------------------- Dated this the 3rd day of September, 2010 JUDGMENT Petitioner is challenging proceedings initiated under the SARFAESI Act for realising amounts in arrears in a cash credit facility availed by her from the first respondent Bank. The Bank had proceeded against the secured assets and a notice under Section 13 (4) of the Act has already been issued, as per Ext.P6. Contention of the petitioner is that she had suffered heavy loss in the business due to a fire accident in which entire assets of the business was lost, on 22.08.2007. It was by way of restructuring the then existed cash credit facility that the present advance was allowed by the Bank, in the year 2008, to the tune of Rs.10 lakhs. It is pointed out that the defaulted amount will be only to the extent of Rs.1,70,000/-, as per Ext.P5. It is submitted that the petitioner had approached the Bank expressing willingness to regularise the loan account by paying whatever amount overdue. But such request was not to acceeded by the Bank. 2. Learned standing counsel appearing for respondents submitted that the cash credit facility was granted for a period of one year and it need to be renewed on every year for continuance. Since the accounts stood as 'NPA', it was not renewed and the recovery steps under 2 WP(C) No. 24917/2010 the SARFAESI Act was initiated, seeking realisation of the entire amount outstanding. 3. From the circumstances stated above, I am of the opinion that it is for the petitioner to approach the Bank after clearing the entire overdue seeking renewal of the cash credit facility. It is for the Bank to take a decision on the basis of request, considering the facts and circumstances. 4. Hence, the Writ Petition is disposed of directing the petitioner to pay off the entire outstanding (overdue amount) as on date, along with interest and expenses if any due, within a period of one month from today, and to make a request to first respondent for permitting continuance of the cash credit facility by its renewal. If any such request is received, the first respondent shall consider the same and take decision thereon. 5. It is made clear that further proceedings pursuant to Ext.P6 shall be kept in abeyance until a decision in this regard is taken and intimated to the petitioner. Needless to say that if there is any failure to comply with the above directions, the respondents are at liberty to proceed with further steps. C.K. ABDUL REHIM JUDGE dnc