IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 16TH OCTOBER 2009 / 24TH ASWINA 1931 WP(C).No. 28479 of 2009(D) -------------------------- PETITIONER(S): --------------- LIYAKHATH ALIKHAN. M, AGED 53, S/O. MAHABOOB KHAN, HALIMA MANZIL, KOMALAKUNNU, PUNALUR, PROPRIETOR, M/S. ROSHINI AUTO SPARES, Q.S. ROAD, PUNALUR. BY ADV. SRI.R.SURAJ KUMAR SRI.N.AJITH RESPONDENT(S): --------------- 1. STATE BANK OF TRAVANCORE, REPRESENTED BY THE CHAIRMAN, HEAD OFFICE, NEW ADMINISTRATIVE COMPLEX, POOJAPPURA P.O., THIRUVANANTHAPURAM. 2. THE CHIEF MANAGER(AUTHORIZED OFFICER), STATE BANK OF TRAVANCORE, PUNALUR. ADV.SRI.R.S.KALKURA,S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.28479 OF 2009 ------------------------------ Dated this the 16th day of October, 2009 J U D G M E N T ---------------------- 1. Challenge is against proceedings initiated by the respondents under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for realisation of the arrears due in a Bank loan availed by the petitioner. During the year 2007 the petitioner had availed a cash credit facility from the 1st respondent Bank to the tune of Rs.2,25,000/-. Five cents of property along with residential building situated therein was mortgaged in order to secure the loan. Since repayment in the loan account became irregular, the Bank had initiated proceedings against the secured asset. Ext.P2 is the notice issued under Section 13(2). In Ext.P4 representation the petitioner requested for waiver of interest to the possible extent and also for time to settle payment of the entire balance to be settled under the “One Time Settlement Scheme”. According to the petitioner coercive steps are now being pursued without considering such request. 2. Heard learned standing counsel appearing for the respondents, who on the basis of instructions submitted that, W.P.(C).28479/09-D 2 after availing loan in the year 2007, the petitioner had not made any substantial repayments and the arrears outstanding as on 14.10.09 is about Rs.3,20,540/-. It is further submitted that on 5.10.09 the petitioner had approached the Bank with yet another representation seeking consideration of the loan account under “One Time Settlement Scheme” and in that letter the petitioner had promised to pay off the entire liability within three months. Being an account in chronic default the Bank is not favouring any installment facility for wiping off the arrears. 3. Having considered submission on both sides and facts and circumstances of the case, I am of the opinion that interference of this court in the jurisdiction under Article 226 is not at all desirable against the challenge pertaining to the proceedings under the SARFAESI Act, in view of the effective alternate remedy provided under Section 17 of the Act. Still on my considered opinion I am of the view that some indulgence can be shown to permit the petitioner to mitigate the entire arrears within a reasonable time in installments. 4. In the result the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.75,000/- (Rupees Seventy Five Thousand only) on or before 30.11.2009. The respondents are directed to keep in abeyance further steps till such time. The respondents are also directed to consider W.P.(C).28479/09-D 3 request of the petitioner for waiver of interest/default interest if any possible. On payment of the above said amount the respondents will issue a balance statement to the petitioner intimating the net balance after crediting all payments and after considering waiver of interests/default interests to the possible extent. The petitioner shall pay off the entire liability as intimated, in 3 (three) equal monthly installments starting from 31.12.2009 and on or before the last day of the succeeding months. 5. It is made clear that on the event of failure in payment of any of the amounts as stipulated above, the respondents are free to take further steps pursuant to the notices already issued and actions already taken, and on such an event the petitioner will be precluded from raising any further challenge against such proceedings either before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb