IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 7TH JULY 2009 / 16TH ASHADHA 1931 WP(C).No. 18325 of 2009(I) -------------------------- PETITIONER: --------------- M/S.KAIKARA CONSTRUCTION COMPANY, A PARTNERSHIP FIRM,REP.BY ITS MANAGING PARTNER, A.ABDUL SALAM,KAITHAVARAM BUNGALOW, KANKATHUMUKKU,KOLLAM. BY ADV. MR. P.B.SURESH KUMAR MR. K.P.SUJESH KUMAR MR. K.N.SASIDHARAN NAIR MS. SANDHYA RADHAKRISHNAN MS. M.SRUTHY RESPONDENTS: --------------- 1. SOUTH INDIAN BANK, REP.BY ITS CHIEF GENERAL MANAGER, SOUTH INDIAN BANK,S.I.B.HOUSE,T.B.ROAD,THRISSUR-1. 2. CHIEF GENERAL MANAGER, SOUTH INDIAN BANK,S.I.B.HOUSE,T.B.ROAD,THRISSUR-1. 3. DEPUTY GENERAL MANAGER,CREDIT DEPARTMENT SOUTH INDIAN BANK,P.B.NO.28,THRISSUR-680 001. 4. CHIEF MANAGER,SOUTH INDIAN BANK, BISHOP JEROME NAGAR,CHINNAKADA,KOLLAM. 5. AUTHORISED OFFICER,SOUTH INDIAN BANK, REGIONAL OFFICE,HOTEL SAFA INTERNATIONAL BUILDING, MALAYALA MANORAMA ROAD,THIRUVANANTHAPURAM. ADV. MR. GEORGE VARGHESE (MANACHIRACKEL) FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 18325 of 2009 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 7th day of July, 2009 JUDGMENT The petitioner Company had availed an overdraft facility from the respondent Bank, agreeing to repay the due amount with interest as specified and agreed. However, because of the sudden down fall in the business as well as the market condition, the petitioner could not prove their words by their deeds, under which circumstance, the respondent Bank proceeded against the petitioner, invoking the relevant provisions under the SARFAESI Act, which forms the subject matter of the present Writ Petition. 2. The learned counsel appearing on behalf of the Bank, on instructions, submits that, the proposal made by the petitioner for effecting the private sale by releasing three items of properties as mentioned in Ext.P7 can be considered, only if the petitioner remits a sum of Rs.1.85 lakhs on or before 30.9.2009 subject to the further condition that petitioner remits a portion of the same, to an extent of Rs. 25 lakhs before the 31st of this month. The learned counsel for the petitioner submits that, earnest efforts are being made to arrange the funds and that the specified sum of Rs.1.85 lakhs will be satisfied on or before the 30th of August, 2009. However, the learned counsel further submits that, the petitioner, to prove their bona fides, will remit a sum of Rs. 15 lakhs on or before the 31st of this month and for remitting the WP (C) No. 18325 of 2009 : 2 : remaining sum of Rs.10 lakhs (out of the initial 25 lakhs as specified by the Bank), time might be given till the 31st of August, 2009. It is also assured and undertaken that, the balance amount of Rs. 1.6 crores out of the total of Rs.1.85 crores as specified will of course be remitted on or before the 30th August, 2009. 3. After considering the facts and circumstances and to have finality to the issue, of course enabling the respondent Bank to realise the due amount and also taking care and caution to see that the source being tapped by the petitioner for raising the necessary funds, shall not be permitted to be dried up in the course of the proceedings, this Court permits the petitioner to clear the entire liability as aforesaid and thus, the petitioner is directed to pay a sum of Rs.15 lakhs on or before the 31st of this month and to effect a further deposit of Rs.10 lakhs on or before the 30th August, 2009. The balance amount of Rs. 1.6 crores shall be remitted by the petitioner on or before the 30th August, 2009. On paying the amount as aforesaid, the respondent Bank shall release the three items of properties mentioned in Ext.P7 to the petitioner, without any encumbrance, so as to enable the petitioner to have 'private sale' and raise further funds to discharge the liability to the Bank. Subject to the above, the assurance and undertaking made from both the sides are recorded and the Writ Petition is disposed of. P. R. RAMACHANDRA MENON, JUDGE kmd