IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 8TH APRIL 2011 / 18TH CHAITHRA 1933 WP(C).No. 10253 of 2011(F) --------------------------------------- PETITIONER(S): ------------------------ RAJAN K.V., S/O.KUMARAN, THEJUS, NALLANCHI, EACHUR P.O., KANNUR DISTRICT. BY ADV. SRI.P.U.SHAILAJAN RESPONDENT(S): --------------------------- 1. THE MANAGER, NORTH MALABAR GRAMIN BANK, KUDUKKIMOTTA BRANCH, KANNUR DISTRICT, PIN-670 001. 2. THE AUTHORIZED OFFICER (GENERAL MANAGER), NORTH MALABAR GRAMIN BANK, NMGB TOWERS, PALLIKKUNNU, KANNUR-4. R1 & R2 BY ADV.SRI. DEVAN RAMACHANDRAN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/04/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.10253 of 2011 ------------------------------------------- Dated this the 8th day of April, 2011 J U D G M E N T ---------------------- Consequent to default committed in repayment of a loan availed by the petitioner from the respondent Bank as well as another loan to which the petitioner stood as guarantor, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. Ext.P1 and P2 are the notices issued under Section 13(2) of the Act raising demand for payment of the balance outstanding. 2. Going by the scheme of the statute, the petitioner has got an effective remedy to object the demand or to approach the Bank seeking appropriate relief. But, according to the petitioner, he could not file any proper objections to Ext.P1 and P2 within the time stipulated under the statute. However, the petitioner undertakes that he is not intending to pursue any challenge against the proceedings. On the other hand, it is conceded that the petitioner is ready and willing to pay off the liability provided he is permitted to make payments of the amounts in a phased manner, within a reasonable time. Therefore the petitioner seeks indulgence of this court in permitting payment of the amount in instalments within a reasonable time. W.P.(C).10253/11 -2- 3. Heard; standing counsel appearing for the respondent Bank. It is submitted that the loan accounts are in chronic default and the Bank had initiated proceedings under the SARFAESI Act, against the immovable property which is the secured asset. If the petitioner is ready and willing to pay off the entire liability within a short period, the Bank is prepared to keep in abeyance further coercive steps, is the submission. 4. Considering the fact that the proceedings is only at the stage of demand under Section 13(2) it is not at all proper for this court to interdict with. However, considering relinquishment of challenges made and also considering the offer for payment of the amounts, I am of the view that indulgence can be shown in permitting the petitioner to make payment of the balance amount in a phased manner, within a reasonable time. 5. Accordingly the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps initiated pursuant to Ext.P1 and Ext.P2, provided the petitioner remits the entire balance outstanding, along with interest and expenses if any due, in 8 (eight) equal monthly instalments, falling due on or before 30.4.2011 and on or before the last day of the succeeding months. 6. It is made clear that on the event of default in W.P.(C).10253/11 -3- payment of any one of the instalments the respondent will be at liberty to proceed with further steps and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE. okb