IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN MONDAY, THE 15TH SEPTEMBER 2008 / 24TH BHADRA 1930 WP(C).No. 24943 of 2008(T) -------------------------------------- PETITIONERS: --------------------- 1. K.RAMDAS, S/O.T.KRISHNANKUTTY MENON, 54 YEARS, RESIDING AT.AMMINI, KOTTAYIL ENCLAVE P.O., CHIYYARAM, THRISSUR. 2. M/S.COOKIES INDIA) PVT.LTD., CHIYYARAM, THRISSUR, REP. BY ITS DIRECTOR K.RAMDAS. BY ADV. SRI.T.R.RAVI. RESPONDENT: --------------------- STATE BANK OF INDIA, REP. BY ITS ASSISTANT GENERAL MANAGER STATE BANK OF INDIA, RASMECCC, SIB BRANCH, M,G.ROAD, THRISSUR- 680 001. BY ADV. SRI. P.V. SURENDRANATH, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/09/2008,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. Thottathil B. Radhakrishnan, J. ================================== W.P.(C)No.24943 of 2008 ================================== Dated this the 15th day of September, 2008. JUDGMENT Heard the learned counsel for the petitioners and the learned counsel for the respondent, on instructions. The first petitioner is a guarantor and one of the Directors of the second petitioner, which company and its Directors, share-holders and guarantors are debtors under a recovery certificate issued by the Debts Recovery Tribunal ex-parte. They have applied to set aside that ex-parte order and recovery certificate. But the fact remains that the default in repaying the loan availed by the second petitioner is not in dispute. The outstandings have accrued on a cash credit limit of two and a half crores and two other facilities amounting to Rupees seventy-five lakhs. This writ petition is filed challenging the proceedings initiated by the bank under the SARFAESI Act. The WPC24943/08 -:2:- recovery certificate under the RDB Act, having been issued, as of now, there can be no dispute on the quantum fixed for recovery. The grounds to set aside ex-parte recovery certificate are also referable only to the non-availability of some of the Directors in India and the sickness of another Director, who is stated to be undergoing treatment outside India. Faced with this situation, noticing that, there is not much on merits and having placed contentions, which have now been found to be quite unsustainable, the learned counsel for the petitioners submitted that his clients give up all rights to further challenge the SARFAESI Act proceedings and also for re-opening the recovery certificate and they will confine their request for an opportunity to wipe off the outstandings and accruals in instalments. I am satisfied that there is no jurisdictional error or legal infirmity in the measure taken by the bank under the SARFAESI Act and in the proceedings under the RDB Act, which WPC24943/08 -:3:- stands concluded. Therefore, I am inclined to consider the request for an instalment facility on the admitted premise that the petitioners could wipe off the outstandings and have abandoned their contentions against the proceedings under the SARFAESI Act and the RDB Act. Having heard the learned counsel for the parties on the question of instalment facility also, this writ petition is ordered directing that, if an amount of Rupees fifty lakhs is deposited within a period of three weeks from now and if the entire remaining amounts, including all accruals are paid off in four equal monthly instalments, payable on or before the last working day of every month, commencing from November, 2008, the impugned distress action will stand dropped. If the petitioners fail to deposit any of the instalments as aforesaid, the benefit of this judgment will stand recalled automatically and the respondent WPC24943/08 -:4:- will be at liberty to forthwith proceed with distress action. It is further ordered that, by the force of this judgment, all further proceedings at the instance of the petitioners in O.A.No.97 of 2008 before the Debts Recovery Tribunal will stand closed and the Tribunal shall not entertain any matter in challenge of any measure under the SARFAESI Act. Thottathil B.Radhakrishnan, Judge. sl.15.9.