IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 4TH MARCH 2011 / 13TH PHALGUNA 1932 WP(C).No. 5581 of 2011(W) --------------------------------- PETITIONER(S): ------------------- AJAY KUMAR,S/O.RAGHAVAN, AGED 52 YEARS, OLICKAL HOUSE, VALIYAKULAM,CHERUKULANJI PO, RANNI. BY ADVS. SRI.JOHNSON MANAYANI SRI.BENHUR JOSEPH MANAYANI SRI.PIOUS JACOB RESPONDENT(S): -------------------- 1. BRANCH MANAGER STATE BANK OF TRAVANCORE, THOTTAMAN BRANCH RANNI. 2. THE REGIONAL MANAGER STATE BANK OF TRAVANCORE ASSOCIATE OF STATE OF BANK OF INDIA REGION NO.5, SPT REGIONAL OFFICE PATHANAMTHITTA. 3. THE AUTHORISED OFFICER CHIEF MANAGER, FINANCE STATE BANK OF TRAVANCORE, REGION NO.5, SPT REGIONAL OFFICE PATHANAMTHITTA. R1 TO R3 BY ADVS. SRI.SATHISH NINAN, SC., SBT. SRI.SANTHOSH MATHEW,SC.,SBT. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.5581 of 2011-W ---------------------------------------- Dated this the 4th day of March, 2011. J U D G M E N T Proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is challenged in this writ petition. The petitioner availed various credit facilities from the respondent Bank by creating equitable mortgage of immovable property. Consequent to default committed in repayment, the respondent Bank is now proceeding against the property, which is the secured asset. Exts.P1 and P3 are the notices issued under Section 13(2) of the SARFAESI Act. According to the petitioner he had submitted various representations before the authorities concerned, as evidenced from Exts.P2, P5 and P6. Contention of the petitioner is that the coercive steps are now being pursued without considering such representations. 2. Standing counsel appearing for the respondent Bank, on the basis of instructions, submitted that the objections raised against the demand notice issued under Section 13(2) was already considered and a reply as contemplated under Section W.P(C) No.5581 of 2011-W 2 13(3A) was issued to the petitioner. It is further submitted that, altogether five distinct facilities were availed by the petitioner from the respondent Bank. But the proceedings in question was initiated only against two of such credit facilities. Even the amount remaining overdue for payment in those two accounts will come more than Rs.10.32 lakhs. However, it is fairly conceded that if the petitioner makes payment of the total amount overdue in those two accounts within a short time, the transactions in those two facilities can be regularised. 3. Considering the fact that the proceedings is only at the stage of demand notice issued under Section 13(2) and also considering availability of effective alternative remedy, it is not justified on the part of this Court to interdict with the proceedings at this stage. However, in view of the offer made by the respondent Bank, learned counsel for the petitioner seeks indulgence of this Court in permitting regularisation of the account. 4. Accordingly, the writ petition is disposed of permitting the petitioner to regularise the accounts by paying the entire overdue amount (defaulted monthly instalments along with W.P(C) No.5581 of 2011-W 3 interest and expenses if any due) on or before 31.3.2011. If payment of the defaulted amounts is regularised as directed above, the respondents shall permit the petitioner to continue payment of future monthly instalments in accordance with the original schedule. Needless to say that, further coercive steps shall be kept in abeyance till 31.3.2011. 5. It is made clear that on the event of default in making the above said payment or any future monthly instalments, the respondents will be free to proceed with further steps on the basis of the notice already issued and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab