IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R. RAMACHANDRA MENON FRIDAY, THE 2ND JULY 2010 / 11TH ASHADHA 1932 WP(C).No. 20406 of 2010(A) -------------------------- CRMP.2305/2010 of CHIEF JUDL.MAGISTRATE, ERNAKULAM .................... PETITIONERS: --------------- 1. V.P.HASSAN,AGED 53 YEARS,S/O.PAREETH, VADAKKEKKUDY HOUSE,RAYONPURAM.P.O,CHELAMATTOM VILLAGE,KUNNATHUNADU TALUK.(PROPRIETOR BISMILLAH TIMBERS CHELAMATTAM,OKKAL.P.O.) 2. SULEKHA,W/O.V.P.HASSAN,47 YEARS, VADAKKEKKUDY HOUSE,RAYONPURAM.P.O,CHELAMATTAM VILLAGE,KUNNATHUNADU TALUK. BY ADV. MR. SIRAJ KAROLY RESPONDENTS: --------------- STATE BANK OF TRAVANCORE,PERUMBAVOOR BRANCH ERNAKULAM DISTRICT,REPRESENTED BY ITS CHIEF MANAGER,P.O.PERUMBAVOOR,ERNAKULAM DISTRICT. ADV. MR. SATHISH NINAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 20406 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 2nd day of July, 2010 JUDGMENT The petitioner availed a cash credit facility of Rs. 10 lakhs from the respondent Bank, in March, 2006, as capital requirement in connection with the business, creating security interest over the property in question. But, the repayments could not be effected on time, which made the respondent to proceed with the steps under the SARFAESI Act, after declaring the account as 'NPA', which is turn subject to challenge by filing this Writ Petition. 2. The learned counsel for the petitioner submits that, the default was never wilful, but due to some unforeseen circumstances and sudden downfall in the business, adding that earnest efforts are being made to wipe off the outstanding liability at the earliest, also seeking for the benefit of regularization. 3. The learned counsel for the Bank submits, on instructions, that the unit was not functioning as on date and that the stock is also not available. It is also brought to the notice of this Court that, the physical possession has already been taken over on 24.6.2010. The learned counsel further submits that, the outstanding liability as on 30.6.2010 is Rs.11,36,688/-. W.P. (C) No. 20406 of 2010 : 2 : 4. The learned counsel for the petitioner submits that, the petitioner is ready and willing to clear the outstanding liability, if some breathing time is provided in this regard, and that the petitioner does not intend to press any of the grounds taken in the Writ petition nor does he intend to approach the DRT availing the statutory remedy. In the said circumstances, this Court finds it fit and proper to permit the petitioner to clear the entire liability in a phased manner. Accordingly, the petitioner is directed to wipe off the entire liability under the loan transaction by way of 'six' equal monthly installments; the first of which shall be effected on or before the 20th of this month; followed by similar installments to be effected on or before the 20th of the succeeding months. Subject to this, the recovery proceeding stated as being pursued against the petitioner shall be kept in abeyance, for the time being. It is made clear that, if the petitioner commits any default in satisfying the installments as above, the respondent will be at liberty to proceed with further steps for realization of the entire amount in lump sum, from the stage where it stands now. 5. Considering the persuasive submission made by the learned counsel for the petitioner that, the son of petitioner got married hardly one week back, the petitioner will stand permitted to reside in the building for the time being, subject to the condition that, the vacant W.P. (C) No. 20406 of 2010 : 3 : surrender shall be effected as and when demanded, if the commitment now made by the petitioner before this Court is not honoured. The Writ Petition is disposed of as above. P. R. RAMACHANDRA MENON, JUDGE kmd