IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 29TH SEPTEMBER 2011 / 7TH ASWINA 1933 WP(C).No. 25973 of 2011(V) ------------------------------------- PETITIONER(S): ----------------------- RETHI A.SHENOY, AGED 36 YEARS, PROPRIETOR, M/S.SHENOY'S TEXTILES, G.B.SHOPPING COMPLEX, RESIDING AT KALARICKAL HOUSE, CMC-3, CHERTHALA. BY ADV. SMT.PREETHA ANIL RAVINDRAN RESPONDENT(S): ------------------------ 1. CHIEF MANAGER & AUTHORISED OFFICER, STATE BANK OF INDIA, REGIONAL BUSINESS OFFICE, BEACH ROAD, ALAPPUZHA-688 001. 2. THE MANAGER, STATE BANK OF INDIA, G.B.SHOPPING COMPLEX, CHERTHALA-688 524. BY ADV. SRI. R.S. KALKURA, SC., FOR R1 & R2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/09/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: DS WP(C).No. 25973 of 2011(V) APPENDIX PETITIONER'S EXHIBITS: P1: NOTICE U/S 13 (2) OF THE SARFAESI ACT, 2002 DATED 12-02-2011. P2: COPY OF THE STATEMENT P3: COPY OF THE PAPER PUBLICATION RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ PA TO JUDGE DS S. Siri Jagan, J. =-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-= W.P(C) No. 25973 of 2011 =-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-= Dated this, the 29th day of September, 2011. J U D G M E N T The petitioner availed of an overdraft facility from the 2nd respondent. The petitioner committed default in payment of amounts due in respect of the same. Therefore, the respondents have initiated proceedings under the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The petitioner submits that immediately on receipt of the notice, the petitioner has paid off the amounts required to regularise the overdraft account and therefore the petitioner may be permitted to continue to operate the overdraft account without any further default. 2. I have heard the learned standing counsel for the bank, who stoutly opposes the request of the petitioner. However, taking a lenient view, I dispose of the writ petition with the following directions: If the petitioner has paid amounts necessary for regularising the overdraft account as claimed by the petitioner, the petitioner shall be allowed to continue to operate the overdraft account as per the original agreement between the petitioner and 2nd respondent. However, if the petitioner commits any further default in payment of any amounts due in respect of the overdraft account in future, it would be open to W.P(C) No. 25973 of 2011 -: 2 :- the respondents to continue the proceedings now initiated and in such event, the petitioner shall voluntarily surrender the secured asset to the Bank of proceedings under the Act. Sd/- S. Siri Jagan, Judge. Tds/