IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 6TH NOVEMBER 2009 / 15TH KARTHIKA 1931 WP(C).No. 29329 of 2009(I) --------------------------------------- PETITIONER(S): ------------------------ 1. K.V.SHAJI,KOTTARATHIL HOUSE, KUDAYAMPADY, MARIYATHURUTHU, KOTTAYAM. 2. K.V.BABU,KOTTARATHIL HOUSE, KUDAYAMPADI, MARIYATHURUTHU,KOTTAYAM. 3. APPU,CHERIYAVEEPPATHIYIL, AYMANAM, KOTTAYAM. BY ADV. MR.C.S.MANILAL RESPONDENT(S): --------------------------- 1. THE DHANALAKSHMI BANK LTD., ZONAL OFFICE COCHIN, DHANALAKSHMI BUILDING, 1ST FLOOR, NEAR A,R,CAMP, MARINE DRIVE, COCHIN. 2. THE AUTHORISED OFFICER, DHANALAKSHMI BANK LTD., ZONAL OFFICE, MARIN DRIVE, COCHIN. 3. THE BRANCH MANAGER, DHANALAKSHMI BANK, KOTTAYAM BRANCH, KOTTAYM. R2 BY ADVS.MR.K.S.DILIP, MR.SAJU N.A., MR.A.S.SAJUSH PAUL SMT.G.LEKHA, SMT.P.J.FLONY SMT.UMA.G.KRISHNAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: tss C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 29329 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 6th day of November, 2009 J U D G M E N T 1. The petitioners are partners of a firm which was conducting a Saw Mill. A cash credit facility was availed by the firm from the 1st respondent Bank, during the year 2007, to the tune of Rs.7.5 lakhs. According to the petitioners the entire stock of timbers was lost due to a fire accident which occurred in the year 2007 and the firm sustained heavy loss to the tune of about Rs.12.5 lakhs. Therefore the petitioners could not continue repayment in terms of the loan agreement. Consequent to the default, the respondents initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and Ext.P3 notice was issued under Section 13 (4) for, taking over possession of the immovable properties which W.P.(C)No. 29329 of 2009 -2- are the secured assets. Contention of the petitioners is that they are taking all earnest efforts to pay off the liability and the entire arrears can be cleared within a reasonable time in installments. Grievance of the petitioners is that the respondents are not acceding to requests made to the above effect and coercive steps are now being threatened. Therefore the petitioners are seeking indulgence of this court in permitting to pay off the entire liability in installments. 2. Heard standing counsel appearing for the respondents, who on the basis of the instructions submitted that, the present arrears outstanding will be around Rs.8.5 lakhs and two cheques submitted by the petitioners towards part payment was dishonoured. Therefore the Bank is not favouring in permitting any extended period for clearing the dues. 3. Having considered rival contentions and facts and circumstances of the case, I am of the opinion that some indulgence can be shown in the matter in permitting the W.P.(C)No. 29329 of 2009 -3- petitioners to pay off the arrears in the loan account and to continue repayment as per the original schedule. 4. Accordingly the writ petition is disposed of directing the petitioners to make payment of an amount of Rs.2 lakhs on or before 30.11.2009. The respondents are directed to keep in abeyance further coercive steps till such date. If the petitioners make payment of the said amount, the respondent Bank will furnish a balance statement showing the amounts outstanding, after crediting all payments made and after considering waiver of interest/default interest and expenses to the possible extent. The petitioners shall continue to pay the balance amount so intimated in four (4) equal monthly installments thereafter falling due on or before 31.12.2009 and on or before the last day of three succeeding months. 5. It is made clear that on the event of default in payment of any of the installments as stipulated above, the respondents will be free to take further steps pursuant to notices already issued and on such event the petitioners will W.P.(C)No. 29329 of 2009 -4- be precluded from raising any further challenge against the proceedings before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/