IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 6TH OCTOBER 2009 / 14TH ASWINA 1931 WP(C).No. 27094 of 2009(F) -------------------------- PETITIONER: --------------- PADMAKUMAR, S/O. CHANDRASEKHARAN, ALUMPATTUVILA VEEDU, CHANDANATHOPPU P.O., KOLLAM DISTRICT. BY ADVS. SRI.K.G.RADHAKRISHNAN SRI.VINEESH P.GEORGE RESPONDENTS: --------------- 1. THE ASSISTANT GENERAL MANAGER, STATE BANK OF INDIA, 2ND FLOOR RAVI'S ARCADE, NEAR IRON BRIDGE, KOLLAM. 2. THE AUTHORISED OFFICER, STATE BANK OF INDIA, RASMESCC, KOLLAM. BY ADV. SRI. K.K. CHANDRAN PILLAI, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 27094 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 6th day of October, 2009 J U D G M E N T 1. This writ petition is filed challenging the proceedings initiated by the respondents under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) against the immovable property offered by him as the security for availing a loan to the tune of Rs.1,00,000/- from the respondent Bank during the year 2003. According to the petitioner eventhough substantial amounts were repaid, regular payment of monthly installments became defaulted due to stringent financial conditions. If the property, which is the residential compound of the petitioner, is taken over possession and put in auction that will cause severe prejudice, is the contention. Counsel appearing for the petitioner submitted that he is ready and willing to clear the entire arrears if W.P.(C)No. 27094 of 2009 -2- reasonable time is granted to effect payment in installments. 2. Heard standing counsel appearing for the respondents who on instructions submitted that after 19.06.2006 the petitioner had not effected any payments in the loan account and accordingly the loan account was treated as NPA from August,2006 onwards and approximately an amount of Rs.1.35 lakhs is due at present. Since the petitioner is a chronic defaulter the respondents are not favoring in permitting installment payments. 3. Having considered rival contentions and facts and circumstances of the case, I am inclined to show some indulgence in permitting the petitioner to pay off the entire liability in installments. 4. Accordingly the Writ Petition is disposed of directing the petitioner to make payment of an amount of Rs.40,000/- on or before 31.10.2009. The respondents are directed to keep in abeyance further steps till then. On payment of the said amount the respondent Bank will W.P.(C)No. 27094 of 2009 -3- furnish a balance statement to the petitioner after crediting all such payments and after considering waiver of interest or penal interest to the possible extent. The petitioner shall continue to pay the balance amount as per the statement in five equal monthly installments starting from 30.11.2009 and on or before last day of every succeeding month. 5. It is made clear that on the event of default in payment of any of the amount as stipulated above the respondents are free to proceed with further steps pursuant to the notices already issued and on such event the petitioner will be precluded from raising any further challenge against the proceeding initiated under the SARFAESI Act, before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/