IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 21ST JUNE 2011 / 31ST JYAISHTA 1933 WP(C).No. 15916 of 2011(L) ------------------------------------ PETITIONER(S): ----------------------- 1. AMAR, S/O.G.M.ASHOKAN, 20/1239,ANIGHAR, V.K.KRISHNA MENON ROAD,PANNIYANKARA, KALLAI P.O., KOZHIKODE-673 003. 2. ANAZ, S/O.G.M.ASHOKAN, 20/1239, ANIGHAR, V.K.KRISHNA MENON ROAD, PANNIYANKARA, KALLAI P.O., KOZHIKODE-673 003. BY ADV. SRI.P.S.SREEDHARAN PILLAI SMT.C.G.PREETHA SRI.T.K.SANDEEP SRI.ARJUN SREEDHAR SRI.ANEISH RAVINDRA SRI.ARUN KRISHNA DHAN SRI.JOSEPH GEORGE(MULLAKKARIYIL) RESPONDENT(S): ------------------------ THE BRANCH MANAGER, STATE BANK OF TRAVANCORE, KALLI BRANCH, KOZHIKODE-673 001. BY ADVS. SRI.T.SETHUMADHAVAN, SC. SRI.PUSHPARAJAN KODOTH SRI.K.JAYESH MOHANKUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 15916 of 2011(L) APPENDIX EXT.P1: TRUE COPY OF THE AGREEMENT ENTERED BETWEEN THE PETITIONERS AND SMT.G.M.VISALAKSHI DATED 20.09.2008. EXT.P2: TRUE COPY OF THE NOTICE DATED 30.08.2010. EXT.P3: TRUE COPY OF THE NOTICE DATED 02.02.2011. EXT.P4 SERIES: TRUE COPY OF THE RECEIPTS DATED 11.03.2011 AND 26.03.2011. EXT.P5: TRUE COPY OF THE DEMAND NOTICE PUBLIDSHED IN THE MATHRUBHOOMI DAILY DATED 24.04.2011. EXT.P6: TRUE COPY OF THE NOTICE DATED 03.12.2010. EXT.P6(A): TRUE COPY OF THE COMPLAINT 19.11.2010. EXT.P7: TRUE COPY OF THE NOTICE DATED 13.01.2011. //TRUE COPY// P.A. TO JUDGE MNS C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.15916 of 2011 ------------------------------------------- Dated this the 21st day of June, 2011 J U D G M E N T ---------------------- Consequent to failure of the petitioners in repaying an overdraft facility availed from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. Ext.P5 is the notice issued under Section 13(2), which was published on 21.4.2011. According to the petitioner, the default in repayment occurred only due to unforeseen set backs in the business activities because of some labour disputes evolved in their business concern. It is further contended that the coercive steps are now being pursued without considering the request made by the petitioners to permit payment of the entire balance outstanding in a phased manner, within a reasonable time. 2. Considering the fact that the proceedings W.P.(C).15916/11 -2- initiated under the SARFAESI Act is only at the stage of demand under Section 13(2) and also considering the effective statutory remedies provided under the Act, it may not be justified on the part of this court to interfere with, at this stage. However, learned counsel for petitioners made an undertaking regarding relinquishment of all challenges and also relinquishment of all statutory rights available. On the other hand, a limited plea is raised for permitting payment of the entire amounts outstanding in a phased manner, within a reasonable time. 3. In a statement filed on behalf of the respondents, it is mentioned that as on 4.4.2011 a sum of Rs.25,67,619/- is outstanding and Ext.P5 notice was published only because of the fact that the petitioners failed to make payment of any considerable amounts in spite of various demand notices issued earlier. 4. Considering the relinquishments made by the petitioners, I am of the view that, eventhough interference on merits is not warranted, the petitioner can be permitted W.P.(C).15916/11 -3- to wipe off the entire liability in instalments, 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.P5 notice, subject to condition of the petitioner remitting a sum of Rs.5 lakhs on or before 15.8.2011 and the entire balance outstanding along with interest and expenses if any due, in 6 (six) equal monthly instalments falling due on or before 15.9.2011 and on or before the 15th day of the succeeding months. 6. It is made clear that on the event of default in payment of any one of the instalments the respondents 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