IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 17TH MARCH 2011 / 26TH PHALGUNA 1932 WP(C).No. 5998 of 2011(Y) -------------------------------- PETITIONER(S): ------------------- 1. LALU, AGED 39 YEARS, S/O.VELAYUDHAN, PROPRIETOR, KALLYA LAKSHMI OIL MILLS, RESIDING AT PEENICKAL HOUSE, VELLANCHIRA, CHALAKUDY, THRISSUR DISTRICT. 2. VELAYUDHAN, AGED 70 YEARS, S/O.VELAYUDHAN, PEENICKAL HOUSE, VELLANCHIRA, CHALAKUDY, THRISSUR DISTRICT. 3. P.K.VILASINI, AGED 68 YEARS, S/O.VELAYUDHAN, PEENICKAL HOUSE, VELLANCHIRA, CHALAKUDY, THRISSUR DISTRICT. BY ADV. SRI.M.PREMCHAND RESPONDENT(S): -------------------- 1. THE AUTHORIZED OFFICER, THE UNION BANK LTD., P.B.NO.123, FIRST FLOOR, SAKTHAN ARCADE, THRISSUR-680001. 2. THE UNION BANK LTD., CHALAKUDY BRANCH, REP. BY THE MANAGER. BY ADV. SRI.A.S.P.KURUP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.5998 of 2011-Y ---------------------------------------- Dated this the 17th day of March, 2011. J U D G M E N T Coercive steps taken as contemplated under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), is the subject matter of challenge in this writ petition. A cash credit facility as well as a term loan availed by the petitioners from the respondent Bank was defaulted repayment. Consequently, immovable property belonging to the petitioners, which is the secured asset, has been proceeded against. 2. Considering the effective alternative remedy provided under Section 17(1) of the Act and also considering the dictum laid by the Hon'ble Supreme Court in United Bank of India V Sathyawati Tondon & others (2010(8) SCC 110) this Court may not be justified in interdicting with the proceedings. 3. However, learned counsel for the petitioners W.P(C) No.5998 of 2011-Y 2 made an appeal to this Court to permit payment of the entire amount outstanding in a phased manner within a reasonable time, on the basis of an undertaking that the petitioners are relinquishing all challenges and that they are not intending to pursue any statutory remedy. 4. Heard; standing counsel appearing for the respondent Bank. It is submitted that both the loans are in chronic default and the repayment period stands expired. It is further stated that the accounts were classified as Non Performing Asset in the year 2008 and the total amount outstanding is more than Rs.6 lakhs. 5. However, considering the facts and circumstances, I am of the view that indulgence can be shown in permitting payment of the entire arrears, in a phased manner, eventhough interference on merits is not warranted. 6. Accordingly, the writ petition is disposed of directing the respondent Bank to keep in abeyance all further steps for dispossession and sale of the immovable W.P(C) No.5998 of 2011-Y 3 property, subject to condition of the petitioner remitting the entire balance outstanding along with interest and expenses if any due, in 5 (five) equal monthly instalments, falling due on or before 31.3.2011 and on or before the last day of succeeding months. 7. It is made clear that on the event of default in payment of any one of the instalments, the respondent will be free to proceed with further steps. It is further made clear that the above relief is granted subject to the condition that the petitioners are precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab