IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 8TH APRIL 2011 / 18TH CHAITHRA 1933 WP(C).No. 5228 of 2011(C) ------------------------------------- PETITIONER: ------------------- M.BASHEERKUTTY, PROPRIETOR, S.A.CASHEW FACTORY, PARAYARUVILA VEEDU, MUTTAKKAVU, NEDUMPANA.P.O., KOLLAM DISTRICT. BY ADV. SRI.B.SURESH KUMAR. RESPONDENT: ---------------------- THE VIJAYA BANK, REPRESENTED BY ITS CHIEF MANAGER, VADAYATTUKOTTA ROAD, CHAMAKKADA, KOLLAM-691 001. BY ADVS. SRI.K.ANAND, SMT.LATHA KRISHNAN, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/04/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C.K.ABDUL REHIM, J. ------------------------------- W.P.(C).No.5228 of 2011 ------------------------------- Dated this the 8th day of April, 2011. J U D G M E N T Challenge in this writ petition is against Ext.P2, a notice issued by the respondent Bank under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), consequent to default committed in repayment of a term loan and an over draft facility availed by the petitioner from the respondent Bank, against mortgage of immovable property, which is now proceeded against. 2. Even though the proceedings is only at the stage of issuing demand notice under Section 13(2), the petitioner concede that he is ready and willing to make payment of the entire amount outstanding. Since the secured assets is a cashew factory, the petitioner apprehends that any imminent action in furtherance of Ext.P2 may cause severe prejudice. Therefore, the petitioner seeks interference of this Court to permit payment of the balance amount in a 2 W.P.(C).No.5228 of 2011 phased manner, within a reasonable time. The above submission is made on the basis that the petitioner is relinquishing all challenges and that he is not intending to invoke any statutory remedy. 3. Pursuant to an interim order passed by this Court on 23.2.2011, the petitioner had already remitted a sum of Rs.7 lakhs. Learned standing counsel appearing for the respondent Bank submits that, as on 31.3.2011 the balance outstanding is more than Rs.24.97 lakhs. 4. Even though interference on merits is not warranted, I am of the view that, the petitioner can be permitted to pay off the entire liability within the reasonable time, in instalments, in view of relinquishment made by the petitioner and also considering the fact that the proceedings is only at the stage of a demand notice under Section 13(2). 5. Therefore, the writ petition is disposed of, directing the respondent Bank to keep in abeyance all further steps initiated pursuant to Ext.P2, subject to condition of the 3 W.P.(C).No.5228 of 2011 petitioner remitting the entire amount due along with interest and expenses if any due, in 3 (three) equal monthly instalments falling due on or before 30.4.2011 and on or before the last day of the succeeding months. 6. It will be open to the petitioner to approach the respondent Bank seeking waiver of interest/penal interest and expenses to the possible extent. It is made clear that this judgment will not stand in the way of the respondent in considering such request and in permitting waiver to the possible extent. 7. It is made clear that on the event of default in payment of any one of the instalments as stipulated above, the respondent Bank will be free to proceed with further steps, on the basis of the notice already issued and on such event the petitioner will be precluded from raising any subsequent challenge. C.K.ABDUL REHIM, Judge ami/