IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 27TH JULY 2009 / 5TH SRAVANA 1931 WP(C).No. 12046 of 2009(A) -------------------------------------- PETITIONER(S): ------------------------ 1. A.C.IGNATIOUS, S/O.CHERU, ALOOR HOUSE, KOTTAPPURAM P.O., THRISSUR-680 584. 2. ANNIE, W/O.IGNATIOUS, ALOOR HOUSE, KOTTAPPURAM P.O., THRISSUR-680 584. BY ADVS.MR.P.RADHAKRISHNAN (1) MR.MADHU RADHAKRISHNAN RESPONDENT(S): ------------------------- 1. AUTHORIZED OFFICER, (SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT, SECURITY INTEREST ACT 2002) THE KERALA STATE CO-OPERATIVE BANK LTD. 2. THE KERALA STATE CO-OPERATIVE BANK LTD. DORAISWAMY IYER ROAD, KOCHI-682 035, REPRESENTED BY ITS MANAGER. ADV. MR.NAGARAJ NARAYANAN,SC,K.S.CO-OP BANK FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 27/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO.12046/2009 APPENDIX PETITIONER'S EXHIBITS P1:- COPY OF THE POSSESSION NOTICE ISSUED BY THE IST RESPONDENT TO THE PETITIONERS. TRUE COPY P.A. TO JUDGE TSS P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 12046 of 2009 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 27th day of July, 2009 JUDGMENT The petitioners have approached this Court challenging the steps taken by the respondent Bank, invoking the coercive steps under the SARFAESI Act, when they turned to be defaulters and the respondent Bank was compelled to declare the account as 'NPA' followed by the consequences as aforesaid. 2. When the matter came up for admission before this Court, the coercive proceedings were intercepted as per the interim order dated 8.4.2009, directing the petitioner to deposit a sum of Rs.50,000/- and to continue to effect similar payments from April, 2009 itself also incorporating the default clause. The learned counsel for the petitioner submits that, the petitioners deposited Rs.50,000/- in April, 2009 and steps on war footing were being pursued to see that the liability was wiped off for ever within no time. The petitioners have now come forward by filing I.A. 9126 of 2009, stating that, they would clear the entire outstanding liability by October, 2009 and that to prove the bona fides, they would effect a further deposit of Rs.50,000/- on or before the 10th of August, 2009. 3. Heard the learned counsel appearing on behalf of the respondent as well. WP (C) No. 12046 of 2009 : 2 : 4. Considering the facts and circumstances, the petitioners are permitted to clear the entire liability on or before the 31st October, 2009, subject to the condition that the petitioners deposit a sum of Rs.50,000/- on or before the 10th of August, 2009 as undertaken from their side. Subject to the above, the coercive steps, stated as being pursued against the petitioners, shall be kept in abeyance. It is also made clear that, if the petitioners commit any default in depositing the amount of Rs.50,000/- on or before 10.8.2009 or if the petitioners fail to satisfy the entire liability on or before the 31st October, 2009, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump sum, from the stage where it stands now. It is also made clear that, no further extension of time will be granted under any circumstances. The Writ Petition is disposed of accordingly. P. R. RAMACHANDRA MENON, JUDGE kmd