IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 16TH JUNE 2011 / 26TH JYAISHTA 1933 WP(C).No. 16219 of 2011(B) ---------------------------------------- PETITIONER(S): ------------------------ 1. M/S.SURYA SAWMILL, REPRESENTED BY ITS PROPRIETRIX MRS.SHEEJA DEVI, 2/218, S.N.NAGAR, KODANNUR POST, THRISSUR. 2. SHEEJA DEVI, W/O.UNNIKRISHNAN, PONATHIL HOUSE, NATTIKA P.O., THRISSUR. 3. P.R.UNNIKRISHNAN, PONATHIL HOUSE, NATTIKA P.O., THRISSUR. BY ADV. SRI.D.ANIL KUMAR RESPONDENT(S): --------------------------- 1. AUTHORIZED OFFICER, DHANALAKSHMI BANK LTD., THRISSUR- 680 002. 2. DHANALAKSHMI BANK LTD., PALLAKAL BRANCH, THRISSUR-680 002. R1 & R2 BY ADV. SRI. C.K.KARUNAKARAN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.16219/2011 B APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE NOTICE ISSUED UNDER SECTION 13(4) OF THE ACT 2002 ISSUED BY 1ST RESPONDENT. RESPONDENT'S EXHIBITS: N I L /TRUE COPY/ P.A.TO JUDGE Kss C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.16219 of 2011-B ---------------------------------------- Dated this the 16th day of June, 2011. J U D G M E N T Consequent to default committed by the petitioners in repaying a cash credit facility availed from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated and the immovable property, which is the secured asset, was sought to be taken over possession. Ext.P1 is the notice issued under Rule 8(1) of the Security Interest (Enforcement) Rules, 2002 intimating the steps taken as contemplated under Section 13(4) of the Act. Contention of the petitioners is that the coercive steps are now being pursued without considering their request for permitting payment of the amounts due in a phased manner, within a reasonable time. 2. Heard; standing counsel appearing for the W.P(C) No.16219 of 2011-B 2 respondent Bank. It is submitted that the cash credit facility in question was availed in the year 2008 and the petitioners committed consecutive defaults in effecting payment of the amounts due. It is submitted that the loan account is in chronic default and stands declared as 'NPA'. It is further submitted that there is a total outstanding of more than Rs.6.83 lakhs as on 31.5.2011. 3. Considering the effective alternative remedy provided under Section 17(1) it may not be justified on the part of this Court to interdict with the steps now taken. However, learned counsel for the petitioners made an appeal to permit payment of the amounts due in instalments, within a reasonable time. Such a request is made on the basis of an undertaking that the petitioners are relinquishing all challenges and also relinquishing rights if any available to invoke statutory remedy. 4. Eventhough interference on merits is not warranted, I am of the view that petitioners can be permitted to pay off the entire liability in a phased manner W.P(C) No.16219 of 2011-B 3 in view of the relinquishments made by them. 5. Accordingly, the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps for dispossession and sale of the property, subject to condition of the petitioners remitting the entire amount outstanding along with interest and expenses if any due, in 4 (four) equal monthly instalments, falling due on or before 30.6.2011 and on or before the last day of succeeding months. 6. It is made clear that on the event of default in payment of any one of the instalments as stipulated above, the respondent will be free to proceed with further steps. It is further made clear that the above relief is granted subject to condition that the petitioners are precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab