IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 28TH JULY 2010 / 6TH SRAVANA 1932 WP(C).No. 10163 of 2010(U) -------------------------- PETITIONERS --------------- 1. M/S. AL ANSAR MARGIN FREE SUPER MARKET, THIRUVAMPADY REPRESENTED BY ITS MANAGING PARTNER, MR.K. ABDUL KALAM, KOZHIKODE DISTRICT. 2. AL ANSAR METALS & FOOT WEAR, THIRUVAMPADY, KOZHIKODE DISTRICT, REPRESENTED BY THE MANAGING PARTNER MR.K. ABDUL KALAM 3. MR.K. ABDUL KALAM (MANAGING PARTNER) KEELATH HOUSE, KUMARANELLUR.P.O, KOZHIKODE DISTRICT. BY ADV. SRI.P.PARAMESWARAN NAIR SMT.SREELATHA PARAMESWARAN NAIR RESPONDENTS: --------------- 1. STATE BANK OF TRAVANCORE, THIRUVAMPADY BRANCH, KOZHIKODE DISTRICT. 2. THE AUTHORISED OFFICER, STATE BANK OF TRAVANCORE, REGION-II, ZONAL OFFICE, KOZHIKODE - 673 004. ADV. SRI.T.SETHUMADHAVAN SRI.PUSHPARAJAN KODOTH SRI.K.JAYESH MOHANKUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 10163 OF 2010 ......................................................................... Dated this the 28th July, 2010 J U D G M E N T The petitioners were confronted with the steps under the SARFAESI Act, for realisation of the amount stated as due in respect of the financial assistance extended by the respondent Bank on the strength of the security interest created over the property in question, which made them to approach this Court by filing the present Writ Petition. It is contented that, inspite of the willingness expressed to clear the liability in a phased manner, the respondent Bank did not pay any heed to the same, which is sought to be intercepted . 2. When the matter came up for consideration before this Court on 25.03.2010, the coercive steps were intercepted on condition that the petitioners deposited a sum of Rs. Four lakhs, which is stated as complied with. Subsequently, taking note of the facts and circumstances, the petitioners were directed to deposit a further sum of Rs. Six lakhs, while extending the W.P.(C) No. 10163 OF 2010 2 interim order (by order dated 05.04.2010). The petitioners filed I.A.No. 7207 of 2010 seeking for enlargement of time to satisfy the condition which was allowed on 07.06.2010 and compliance was reported on 21.07.2010. 3. The learned Counsel for the petitioners submits that the petitioners are making earnest efforts to see that the entire liability is caused to be discharged within the shortest possible time and that they pray for granting a period of 'two' years as stated in paragraph No.10 and also in ground 'C'. 4. The learned Standing Counsel appearing for the respondent Bank submits, with reference to the contents of the statement, that the petitioners are chronic defaulters and inspite of maximum leniency shown, the liability was not cleared on time, under which circumstance, the account was declared as 'NPA' on 30.05.2009. It is also stated in the opening paragraph of the statement that the total outstanding liability under the two cash credit facilities is more than Rs. 24 lakhs and that, after giving credit to the sum of Rs. 10 lakhs, the balance is more than Rs.20 lakhs, the correctness of which is doubted from W.P.(C) No. 10163 OF 2010 3 the part of the petitioners. 5. The learned Counsel for the petitioners submits that the petitioners do not intend to avail the statutory remedy as provided under Section 17 of the SARFAESI Act by approaching the DRT and the only prayer is to permit the petitioners to clear the liability in a phased manner. 6. Considering the facts and circumstances , the petitioners are permitted to clear the outstanding liability by way of 'eight' E.M.Is. the first of which shall be cleared on or before 30.08.2010 to be followed by similar installments to be effected on or before the 30th of the succeeding months. Subject to this, the recovery proceedings stated as being pursued against the petitioners shall be kept in abeyance for the time being. It is made clear that, if any default is committed by the petitioners in effecting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realisation of the amount in a lump sum, from the stage where it stands now. 7. The respondent Bank is directed to furnish a statement of account, giving credit to the entire payments W.P.(C) No. 10163 OF 2010 4 stated as effected by the petitioners, within two weeks from the date of receipt of a copy of the judgment. The Writ Petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. lk