IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 12TH OCTOBER 2009 / 20TH ASWINA 1931 WP(C).No. 23573 of 2009(N) -------------------------- PETITIONER(S): --------------- V.I.SIDDIQUE, SON OF IBRAHIM, VALLOOR HOUSE, COLONYPADY, ALUVA. BY ADV. SRI.S.M.PREM SMT.K.P.SANTHI SRI.P.K.NIJOY SMT.NISHA G.THARAMAL RESPONDENT(S): --------------- THE FEDERAL BANK LIMITED, ALUVA BRANCH, ALUVA, REPRESENTED BY THE AUTHORISED OFFICER. BY ADV. SRI.A.ANTONY SMT.LEELAMMA ANTONY THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ WP(C).No. 23573 of 2009(N) APPENDIX PETITIONER'S EXHIBIT: P1. COPY OF THE NOTICE DATED 30.07.2009 ISSUED BY THE RESPONDENT. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A. TO JUDGE C.K. ABDUL REHIM, J - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 23573 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 12th day of October, 2009 J U D G M E N T 1. Petitioner had availed a cash credit facility from the respondent Bank, for business purpose, during the year 2003, to the tune of Rs.6,50,000/-. According to the petitioner, he made repayment of considerable amounts. But continued remittance could not be possible due to various reasons, including serious downfall in business. Consequent to default committed in repayments, the Bank initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and Ext.P1 notice under Section 13 (2) was issued. Pursuant to that steps for dispossession of the petitioner from the immovable property which is the secured asset was initiated. The petitioner is approaching this court mainly seeking directions for permitting him to pay off the amount in W.P.(C)No. 23573 of 2009 -2- installments and also for allowing re-scheduling or regularisation of the loan account, eventhough other legal contentions are raised against the proceedings. 2. In the counter affidavit filed by the respondent, it is stated that the cash credit facility is sanctioned on 25.01.2003 and it was renewed on 28.09.2007. But the account become inoperative and classified as 'NPA', with effect from 31.03.2008. This court by virtue of interim order dated 25.08.2009 granted stay against further proceedings on condition of payment of an amount of Rs.2,00,000/- and it is reported as complied with. A copy of the statement of accounts pertaining to the transaction has been produced, which showed a balance of Rs.7,62,146.80/- as on 31.08.2009, after crediting payments already made. Since the loan account is in chronic default and since it remains classified as 'NPA' since more than one year, the Bank is not favoring rescheduling or regularisation. However, learned counsel appearing for the petitioner submitted that the petitioner is ready and willing to pay off W.P.(C)No. 23573 of 2009 -3- the entire liability, if reasonable time is granted to pay the amounts in installments. 3. Having considered contentions on both sides and facts and circumstances of the case, I am of the opinion that some indulgence can be shown in the matter of permitting the petitioner to pay off the entire liability in installments. Accordingly the Writ Petition is disposed of directing the petitioner to make payment of an amount of Rs.2,00,000/- (Rupees Two lakhs only) on or before 15.11.2009. The respondent is directed to keep in abeyance all further steps pursuant to Ext.P1 till such date. On payment of the said amount the respondent Bank will furnish a balance statement to the petitioner, after giving credit to such payments and after considering waiver of interest or penal interest to the possible extent. The petitioner shall continue to pay the balance outstanding as per that statement, in six (6) equal monthly installments starting from 15.12.2009 and on or before the 15th day of every succeeding month. W.P.(C)No. 23573 of 2009 -4- 4. It is made clear that on the event of failure to pay any of the installments as stipulated as above, the Bank will be free to proceed with further steps pursuant to the notices already issued, and on any such event the petitioner is precluded from raising any subsequent challenge against such proceedings before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/