IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN THURSDAY, THE 25TH SEPTEMBER 2008 / 3RD ASWINA 1930 WP(C).No. 28498 of 2008(P) -------------------------------------- PETITIONERS: -------------------- 1. PRAVEEN.S., 40 YEARS, S/O.SURENDRANATH, PARTNER OF M/S.MAJESTIC HARDWARES, 40/1707 MARKET ROAD, ERNAKULAM-682 011. 2. MANJULA DEVI, AGED 38 YEARS, W/O.PRAVEEN.S., PARTNER OF M/S.MAJESTIC HARDWARES, 40/1707, MARKET ROAD, ERNAKULAM-682 011. 3. SURENDRANATH, AGED 72 YEARS, S/O.MADHAVA RAO, 40/1707, MARKET ROAD, ERNAKULAM- 682 011. 4. MANORAMA SURENDRANATH, AGED 68 YEARS, W/O.SURENDRANATH, 40/1707, MARKET ROAD, ERNAKULAM-682 011. BY ADV. SMT.A.P.LALY @ LALY VINCENT RESPONDENTS: ---------------------- 1. THE CHIEF MANAGER, UNION BANK OF INDIA MAIN BRANCH, M.G.ROAD, ERNAKULAM. 2. THE DISTRICT COLLECTOR, ERNAKULAM R2 BY GOVERNMENT PLEADER SRI.K.C.SANTHOSHKUMAR R1 BY ADV. SRI.A.S.P.KURUP, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Rs/ THOTTATHIL B. RADHAKRISHNAN, J. = = = = = = = = = = = = = = = = = = = = = = = = W.P.(C).No.28498 of 2008-P = = = = = = = = = = = = = = = = = = = = = = = = Dated this the 25th day of September, 2008. JUDGMENT Petitioners 1 and 2 availed a loan by way of a cash credit of Rs.25 lakhs. That accrued to Rs.26,50,715.92 as on 31-3-2008. Ext.P1 demand under Section 13 of the SARFAESI Act was issued by the creditor bank. Petitioners 3 and 4, who are the parents of the first petitioner, are the guarantors. The property appears to be one item which belongs to petitioners 3 and 4. Going by Ext.P3, the petitioners were directed to vacate the premises. As of now, no sale has taken place and the petitioners state that they will be able to wipe off the outstandings by arranging a private sale which may fetch them the appropriate price. Having regard to the amount fixed for recovery and the extent of land, I am not impressed by the statement of the petitioners WP(C)28498/2008 -: 2 :- because no concrete proposal for any private sale is disclosed in the writ petition. Be that as it may, the learned counsel for the petitioners is right in pointing out that the property is a fairly valuable item in a commercial area of the city of Cochin. In the aforesaid circumstances, to give the petitioners a last opportunity, it is directed that if the petitioners file affidavit before the Manager of the bank relinquishing their right to challenge the SARFAESI Act proceedings either before the DRT or any other authority, including this Court, the bank will defer the actual dispossession for a period of six months as a last chance, however that the bank will be at liberty to take symbolic possession and proceed with steps for sale of the property. If the petitioners make the remittance to the satisfaction of the bank in the meanwhile, the bank would consider, in its wisdom, whether it will be feasible to exclude the distress action. WP(C)28498/2008 -: 3 :- If the entire amounts are not remitted within six months, the bank will be at liberty to immediately dispossess the petitioners either before or after any sale that the bank may have in terms of the SARFAESI Act. It is also directed that the affidavit that the petitioners are to file shall also contain undertaking that they will surrender possession to the first respondent within a period of six months. The writ petition is ordered accordingly. THOTTATHIL B. RADHAKRISHNAN, JUDGE. Sha/250908