1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 08.07.2011 CORAM: THE HONOURABLE MR.JUSTICE P.P.S.JANARTHANA RAJA and THE HONOURABLE MR.JUSTICE M.M.SUNDRESH Writ Petition(MD)No.7548 of 2011 Manikandamoorthy ..Petitioner Vs. The Authorised Officer, Canara Bank, 33, North Veli Street, Madurai-625 001. ..Respondent Writ Petition filed under Article 226 of the Constitution of India for issuance of a writ of mandamus directing the respondent to act in consonance with the Statement of Objects and Reasons set out in Act 54 of 2002. For Petitioner : Mr.A.R.M.Ramesh For Respondents : Mr.L.Simon Doel Singh ORDER (Order of the Court was made by P.P.S.JANARTHANA RAJA, J.) By consent of the learned counsel appearing on either side, the main writ petition itself is taken up for final disposal. 2.The petitioner has filed this writ petition to direct the respondent to act in consonance with the Statement of Objects and Reasons set out in Act 54 of 2002. 3.The brief facts arising out of this writ petition are as under:- The petitioner is engaged in real estate business. The petitioner availed credit facility from the respondent-Bank on 19.10.2009 and also paying monthly instalments on the 21st of every month till 21.08.2010. After that date, the petitioner faced financial crisis and therefore, unable to pay the dues. Hence, the respondent-Bank issued statutory Demand Notice under Section 13(2) of the SARFAESI Act on 13.01.2011, to the petitioner and also initiated https://hcservices.ecourts.gov.in/hcservices/ 2 proceedings under Section 13(4) of the Act. If the respondent initiates proceedings as per the provisions of the Act, it would affect the image and reputation of the petitioner. Therefore, the petitioner has filed the present writ petition with the prayer as stated above. 4.The counsel for both the parties have stated that the amount due to the respondent-Bank is Rs.30,76,000/-. Learned counsel for the petitioner has stated that the petitioner is willing to pay the above amount in three monthly instalments. Further he submitted that if the respondent proceeds against the petitioner, it will definitely affect the petitioner's reputation and image among the public. Therefore, he requested the Court to issue a suitable direction to the respondent not to initiate any coercive proceedings against the petitioner. 5.Learned counsel for the respondent has submitted that enough opportunities have been given to the petitioner and in spite of that, the petitioner has not come forward to pay the dues. Therefore, he submitted that the respondent-Bank has every right to proceed against the petitioner. 6.Heard the counsel and perused the materials available on record. In the instant case, the petitioner is willing to pay the amount due to the respondent, and the petitioner's apprehension is that since the respondent had issued the possession notice under Section 13(4) of the SARFAESI Act, the respondent will follow it up by publication of the same in a vernacular and English newspaper, which will certainly affect the reputation and goodwill of the petitioner. 7.Considering the facts and circumstances of the case and in the interest of justice, we direct the petitioner to pay the due amount of Rs.30,76,000/- in three monthly instalments in the following manner:- INSTALMENT AMOUNT TO BE PAID ON OR BEFORE First instalment Rs.10,00,000/- 08.08.2011 Second instalment Rs.10,00,000/- 08.09.2011 Third instalment Rs.10,76,000/- 08.10.2011 https://hcservices.ecourts.gov.in/hcservices/ 3 8.If the petitioner commits any default in payment of any of the instalments within the time as stipulated above, liberty is given to the respondent-Bank to proceed against the petitioner in accordance with law without reference to this order. 9.The writ petition is disposed of accordingly. Consequently, M.P.(MD)No.1 of 2011 is closed. No costs. Sd/- Deputy Registrar(Accounts) /True Copy/ Assistant Registrar To The Authorised Officer, Canara Bank, 33, North Veli Street, Madurai-625 001. +1cc to Mr.A.R.M.Ramesh, Advocate SR.No.22114 KM akm/11.07.11 /3p-3c/ W.P.(MD)No.7548 of 2011 08.07.2011 https://hcservices.ecourts.gov.in/hcservices/