IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 10TH SEPTEMBER 2009 / 19TH BHADRA 1931 WP(C).No. 25413 of 2009(V) -------------------------- CMP.1667/2009 of C.J.M.,THIRUVANANTHAPURAM .................... PETITIONER(S): --------------- 1. MOHAMMED ASHRAF, SHAJI MANZIL, ALAMUKKU, POOVACHAL P.O., THIRUVANANTHAPURAM. 2. NUSAIFA BEEVI, W/O.MOHAMMED ASHRAF, -DO- -DO-. BY ADV. SRI.BLAZE K.JOSE RESPONDENT(S): --------------- 1. UNION BANK OF INDIA, REPRESENTED BY ITS CHIEF MANAGER, REGIONAL OFFICE, UNION BANK BHAVAN, M.G.ROAD, THIRUVANANTHAPURAM. 2. THE AUTHORISED OFFICER, UNION BANK OF INDIA, REGIONAL OFFICE, UNION BANK BHAVAN, M.G.ROAD, THIRUVANANTHAPURAM. ADV.SRI.A.S.P. KURUP, SC, UBI. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.25413 OF 2009 ------------------------------ Dated this the 10th day of September, 2009 J U D G M E N T ---------------------- 1. Challenge in this writ petition is against proceedings initiated under the provisions of the SARFAESI Act for realisation of arrears in the loan account availed by the petitioners from the 1st respondent Bank. The Bank had approached the Chief Judicial Magistrate under Section 14(1) of the SARFAESI Act and Ext.P3 order has already been issued appointing an Advocate Commissioner to take over possession of the secured assets. Since effective alternate remedy is provided under the Act against the proceedings now under challenge, this Court cannot interfere in any manner with the proceedings, unless the petitioners could point out any per se illegality or infirmity thereon. However the petitioners seek indulgence of this Court to direct the first respondent Bank to allow them to discharge the liability by payment of arrears in installments. 2. Learned Standing Counsel for respondents on instructions submitted that after availing loan in the year 2006, the petitioners have not repaid any amount and the defaulted installments along with interest had accrued to a sum of about W.P.(C).25413/09 2 Rs.5 lakhs. Therefore the Bank is not in a position to consider the request of the petitioners for regularisation by paying the defaulted installments. On the other hand if the petitioners are ready to discharge the entire liability, the proceedings now initiated under SARFAESI Act can be kept in abeyance, the counsel for the Bank insisted that in order to show bonafides, let the petitioners pay a considerable amount forthwith. 3. Having considered the rival contentions I am of the opinion that eventhough this Court is not justified in interfering with the proceedings now initiated under the provisions of the SARFAESI Act, some indulgence can be shown to provide facility for the petitioners to pay off the liability in installments. 4. Under the above circumstances the writ petition is disposed of directing the petitioners to make payment of an amount of Rs.1,50,000/- on or before 30.9.2009. Respondents are restrained from taking any steps pursuant to Ext.P3 order till that date. On payment of the said amount the respondent Bank is directed to issue a statement to the petitioners showing the net balance due thereafter. The petitioners shall pay off the balance amount in five equal monthly installments starting from 1.11.2009 and on the first day of every succeeding month. 5. It is made clear that on the event of failure to pay the initial amount or any of the subsequent installments the benefit W.P.(C).25413/09 3 granted under this judgment will stand automatically cancelled and the respondent Bank will be free to take all steps available under law. It is further made clear that the benefit granted as above is subject to condition that the petitioners are precluded from raising any further challenge against the proceedings initiated under the SURFAESI Act before this Court or before any other Forum in any subsequent proceedings. C.K.ABDUL REHIM, JUDGE. okb