IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 22ND SEPTEMBER 2009 / 31ST BHADRA 1931 WP(C).No. 26011 of 2009(V) -------------------------- PETITIONER(S): --------------- MANOJ KUMAR, AGED 34 YEARS, S/O.GOPINATHAN NAIR, VAKELIL ASSOCIATIES, J.J.TOWERS, NEAR PRIVATE BUS STAND, ANGAMALI. BY ADV. SRI.T.P.PRADEEP RESPONDENT(S): --------------- 1. THE AUTHORISED OFFICER, CANARA BANK, REGIONAL OFFICE, ERNAKULAM. 2. THE BRANCH MANAGER, CANARA BANK, ANGAMALI BRANCH, PREMIER PRINTERS BUILDING NH 47, ANGAMALI. ADV.SRI.P.GOPINATHA MENON, S.C., CANARA BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.26011 OF 2009 ------------------------------ Dated this the 22nd day of September, 2009 J U D G M E N T ---------------------- 1. The petitioner is challenging proceedings initiated by the respondent Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI Act), and the proposed auction sale of the secured assets, scheduled on 24.9.09 as evidenced by Ext.P1 notice. Petitioner along with his brother had availed an Over Draft facility to the tune of Rs.12 lakhs and 8 lakhs respectively from the respondent Bank, during the year 2003. When repayments fell into huge arrears, the Bank initiated proceedings. Averments in the writ petition is that the petitioner had approached the Bank and they have agreed to permit the petitioner to make payment of the amount in installments, first by the end of December 2009 and the balance in six equal monthly installments. But against the understanding so arrived, now the steps for sale of the secured assets as per Ext.P1 is being pursued, is the complaint. 2. Heard standing counsel for the respondent Bank, who submitted on instructions that the actual amount due as on date W.P.(C).26011/09 2 is more than 12 lakhs. But considering some waiver in the penal interest, the Bank is prepared to settle the entire arrears on payment of an amount of Rs.11,25,000/-. But the Bank is insisting that at least a considerable portion shall be paid immediately, within a short period. 3. Having considered the rival contentions and the facts and circumstances of the case, eventhough interference on merit against SARFAESI proceedings by this court is not proper and desirable, indulgence can be shown in permitting the petitioner to pay off the entire liability in installments. 4. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.1,00,000/- on or before 31.10.2009 and another sum of Rs.1.5 lakhs on or before 15.11.2009. The respondent Bank is directed to keep in abeyance further proceedings till that date if the conditions as above is complied with. On payment of the said amount of Rs.2.5 lakhs, the Bank will furnish a balance statement to the petitioner calculated on the basis of the agreed sum of Rs.11.25 lakhs along with expenses if any incurred thereafter, after crediting all the payments, and the petitioner shall pay the entire balance outstanding as per that statement in 5 equal monthly installments starting from 15.12.2009 and on or before 15th day of the succeeding months. W.P.(C).26011/09 3 5. It is made clear that if of the any amounts as stipulated above is defaulted, the Bank will be free to proceed with further steps as contemplated under the provisions of the SARFAESI Act. It is made clear that the benefit granted in this judgment is subject to the condition that the petitioner is precluded from raising any subsequent challenge against the proceedings before this Court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb