IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 21ST MARCH 2011 / 30TH PHALGUNA 1932 WP(C).No. 8808 of 2011(A) -------------------------------------- PETITIONER(S): ----------------------- SHEEJA, W/O.SUBRAMANIAN, AGED 37 YEARS, NATIONAL TYRES, GOOLIKADAVU, AGALI, ATTAPPADI, PALAKKAD DISTRICT. BY ADV. SRI.JACOB SEBASTIAN RESPONDENT(S): ------------------------- THE STATE BANK OF INDIA, REP. BY ITS CHIEF MANAGER, (AUTHORISED OFFICER) REGIONAL BUSINESS OFFICE, STATE BANK OF INDIA, PALAKKAD- 678 001. BY ADV. MR.N. RAJAGOPALAN NAIR, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/03/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 8808 of 2011 --------------------------------- Dated this the 21st day of March, 2011 JUDGMENT Petitioner availed a term loan as well as a credit facility from the respondent Bank, for running an industrial unit engaged in production of 'Thread Rubber'. Consequent to default committed in repayment, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated and the immovable property, which is the secured asset, was proceeded against. Ext.P1 is the notice issued intimating steps issued under section 13(4). 2. According to the petitioner, the repayment became defaulted only because of natural calamity of land slide occurred, in which the industrial unit was destroyed. Contention of the petitioner is that there was failure on the part of the respondents in insuring the unit, in accordance with the terms of the loan agreement. It is further contended that the coercive steps are now being pursued without acceding to the request made by the petitioner for permitting payment of the amounts due in a WP(C).8808/2011 2 phased manner, within a reasonable time. 3. Learned Standing Counsel, on the basis of the instructions, submitted that under the cash credit account there is a total arrears of more than Rs.54 lakhs and the period of repayment stands expired. Even with respect to the term loan account, the amounts remaining overdue for payment is about 2.74 lakhs. Since both the loan accounts are in chronic default, respondents are not favouring any request for permitting payment of the amounts in a phased manner. 4. Considering the effective remedy provided under the statute, it is not justified on the part of this court to interfere with the proceedings under challenge. However, inspite of various contentions raised, the learned counsel for the petitioner submitted that, the petitioner is relinquishing challenges against the proceedings and also her rights if any to invoke the statutory remedy. On the other hand a limited prayer is made to permit regularisation in the term loan account on the basis of an offer that the amount due under the cash credit facility will be paid off within a short period. 5. Even though interference on merits is not justified, I am of the view that considering the relinquishments of challenges WP(C).8808/2011 3 the limited relief now sought for can be considered. 6. Accordingly, the writ petition is disposed of directing the respondent to keep in abeyance all further steps for recovery, subject to condition of the petitioner remitting the total amounts due under the cash credit account within two months from today. With respect to the term loan account, the petitioner is directed to make payment of the amounts remaining over due (defaulted instalments along with interest and expenses) in 3 (three) equal monthly instalments falling due on or before 31.3.2011 and on or before the last day of the succeeding months. 7. If the amount due under the cash credit facility is paid and if the amount in default pertaining to the term loan account is cleared as directed above, then the petitioner shall be permitted to continue payment of the future monthly instlaments under the term loan account in accordance with the original schedule of repayment. 8. It is made clear that on the event of default in payment of any of the amounts as stipulated above, the respondent will be free to proceed with further steps pursuant to the notices already WP(C).8808/2011 4 issued and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings, either before this court or before any other forum. C.K.ABDUL REHIM,JUDGE pmn/ WP(C).8808/2011 5