IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 23RD SEPTEMBER 2009 / 1ST ASWINA 1931 WP(C).No. 22163 of 2009(M) -------------------------- PETITIONERS: -------------------- 1. SUNILKUMAR,K, S/O.KRISHNANKUTTY, SUNILNIVAS, T.C.64/173, PAPPANAMCODU PO, KAIMANAM, THIRUVANANTHAPURAM. 2. MANILAL K.S, S/O.KRISHNANKUTTY SUNIL NIVAS, T,.C.64/173,. PAPPANANCODU PO, KAIMANAM, THIRUVANANTHAPURAM. BY ADV. SRI.N.HARIDAS SRI.P.N.SASIDHARAN SRI.C.A.ANUPAMAN SMT.P.G.MANJU RESPONDENT: ------------------- PUNJAB NATIONAL BANK, CPGP TOWERS, UPPALAM ROAD, STATUE, THIRUVANANTHAPURAM REP.BY THE AUTHORISED OFFICER, (ASST.GENERAL MANAGER) BY ADV. SRI.P.K.SURESH KUMAR SMT.N.N.PRASEEDA THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 22163 of 2009(M) APPENDIX PETITIONERS' EXHIBITS: P1 : COPY OF NOTICE DATED 20.1.2009 ISSUED BY THE RESPONDENT BANK TO THE PETITIONERS. P2 : COPY OF POSSESSION NOTICE DATED 16.6.2009 AFFIXED BY THE RESPONDENT ON THE BUILDING BELONGING TO THE 2ND PETITIONER. P3 : COPY OF NOTICE DATED 6.7.209 ISSUED BY THE RESPONDENT TO THE 2ND PETITIONER. RESPONDENT'S EXHIBITS: N I L // TRUE COPY // P.A. TO JUDGE. app/- C.K.ABDUL REHIM, J - - - - - - - - - - - - - - - - - - - - - - - W.P(C) No.22163 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 23rd day of September, 2009 J U D G M E N T 1. Challenge in this writ petition is against Exts.P1, P2 and P3 notices issued under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). The petitioners have availed cash credit facility to the tune of Rs.5 lakhs from the respondent Bank on 2.3.2007, for business purposes. After making some repayments, the account was defaulted and the Bank had proceeded against the secured assets. Now Bank had initiated steps for taking over possession and the sale of the secured assets. Contention of the petitioners is that they are ready and willing to regularize the account by remitting the defaulted installments due up to date. It is further submitted that the petitioners are willing to pay off the entire arrears if reasonable instalments facility is granted. 2. Heard learned standing counsel appearing for the respondent Bank. It is submitted that the loan account is in W.P(C) No.22163 of 2009 2 severe default and the balance outstanding payment is about Rs.5,23,071/- as on 1.12.2008, along interest due thereafter. 3. By virtue of an interim order issued by this court on 5.8.2007, the petitioners have deposited an amount of Rs.1 lakh. The respondent vehemently opposed granting of any installment facility for permitting the petitioners to regularize the account. 4. Having considered the rival contention and facts and circumstances of the case, I am of the opinion that some indulgence can be shown in the matter of permitting the petitioners to pay off the entire liability in installments, even though interference on merits with respect to the proceedings is not desirable in view of the effective alternative remedy available under the statute. 5. Under the above circumstances, the writ petition is disposed of directing the petitioners to make payment of a sum of Rs.1,25,000/- on or before 31.10.2009. The W.P(C) No.22163 of 2009 3 respondent Bank is directed to keep in abeyance further steps under the SARFAESI Act till such date. On payment of the said amount, the respondent Bank will furnish a balance statement to the petitioners after crediting all such payments. The petitioners shall continue to pay the balance outstanding as per the statement in six (6) equal monthly installments starting from 30th November 2009 and on or before end of the subsequent months. 6. It is made clear that on the event of default in payments of any of the installments, the respondent Bank will be free to proceed with further steps on the basis of the notices already issued and on such event the petitioners are precluded from raising any subsequent challenge against the proceedings before this court or before any other forum. C.K.ABDUL REHIM JUDGE app/-