IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 16TH SEPTEMBER 2009 / 25TH BHADRA 1931 WP(C).No. 25675 of 2009(D) -------------------------- PETITIONER(S): --------------- BALACHANDRAN, AGED 49 YEARS, S/O.KUTTAN, B.S.BHAVAN, THAZHOM SOUTH, CHATHANNOOR P.O., KOLLAM DISTRICT. BY ADV. SRI.V.VENUGOPALAN NAIR RESPONDENT(S): --------------- 1. THE QUILON DISTRICT CO-OPERATIVE BANK, REPRESENTED BY ITS MANAGER, HEAD OFFICE OF THE QUILON DISTRICT CO-OPERATIVE BANK, CHINNAKKADA, KOLLAM. 2. THE AUTHORIZED OFFICER, THE QUILON DISTRICT CO-OPERATIVE BANK, HEAD OFFICE OF THE QUILON DISTRICT CO-OPERATIVE BANK, CHINNAKKADA, KOLLAM. 3. THE SALE OFFICER, THE QUILON DISTRICT CO-OPERATIVE BANK, HEAD OFFICE OF THE QUILON DISTRICT CO-OPERATIVE BANK, CHINNAKKADA, KOLLAM. 4. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, CIVIL STATION, KOLLAM. ADV.SRI.B. VINOD, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.25675 OF 2009 ------------------------------ Dated this the 16th day of September, 2009 J U D G M E N T ---------------------- 1. Petitioner is challenging the proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI Act) with respect to the secured assets, mortgaged by him in favour of the 1st respondent Bank for availing cash credit facility to the tune of Rs. 4 lakhs. Since the petitioner defaulted repayment the 1st respondent filed an arbitration case in which an exparte award was obtained. When the 1st respondent Bank initiated proceedings in execution of award and attachment and sale of the property was proceeded with, the petitioner made payment of an amount of Rs.1,00,000/- on 21.5.2008. But since the petitioner has not made any further payment the 1st respondent Bank initiated proceedings under the SARFAESI Act and Ext.P7 notice, taking over possession of the property was issued. The petitioner thereupon had approached the 4th respondent Joint Registrar in Ext.P8 petition seeking direction for keeping in abeyance the proceedings initiated under the SARFAESI Act facilitating to pay off the liability in installments. Since no W.P.(C).25675/09 2 decision is taken the petitioner is approaching this court. 2. Heard learned counsel for respondents 1 and 2. It is submitted that the arrears outstanding as on 13.9.2009 is Ra.7,51,990/- and the petitioner has not paid any amount after the payment of Rs.1,00,000/- effected during May 2008. It is also submitted that the award of the Arbitrator stands confirmed since the petitioner has not filed any appeal against such award. The learned counsel for the petitioner on the other hand seeks indulgence of this Court for granting installment facility for clearing the entire arrears. 3. Having considered the rival contentions and facts and circumstances of the case I am of the opinion that eventhough challenge against the proceedings under the SARFAESI Act on merit cannot be entertained by this Court, in view of the effective alternate remedy provided under the statute, some indulgence can be shown for providing installment facility to clear the entire arrears. 4. In the result the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.1,00,000/- on or before 15.10.2009. On payment of the said amount 1st respondent Bank shall furnish a balance statement to the petitioner showing the outstanding as on that date, after crediting all payments. The petitioner shall continue to pay the W.P.(C).25675/09 3 entire arrears as intimated in 10 equal monthly installments, starting from 15.11.2009 onwards and on or before 15th day of every subsequent months. 5. It is made clear that on the event of failure to pay the initial amount or any of the installments, the benefit granted under this Judgment will stand automatically recalled and the Bank will be free to proceed further as provided under law. It is further made clear that the benefit granted under this judgment is subject to the condition that the petitioner is precluded from raising any further challenge against the proceedings before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb