IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 7TH JUNE 2011 / 17TH JYAISHTA 1933 WP(C).No. 14402 of 2011(A) ---------------------------------- PETITIONER(S): ------------------- V.R.RAJENDRAN NAIR, RAVINDRA VILASOM,ANGADIKKAL SOUTH P.O., CHENGANUR, ALAPPUZHA-689122 BY ADVS. SRI.P.B.SAHASRANAMAN SRI.T.S.HARIKUMAR SRI.K.JAGADEESH RESPONDENT(S): -------------------- UNION BANK OF INDIA, REP.BY ITS CHIEF MANAGER AND AUTHORIZED OFFICER, KANNARA BUILDING, COURT ROAD, CHENGANNUR, ALAPPUZHA-689021 BY ADV. SRI.A.V.THOMAS, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs C.K.ABDUL REHIM, J. ------------------------------- W.P.(C).No.14402 of 2011 ------------------------------- Dated this the 7th day of June, 2011. J U D G M E N T Consequent to default committed in repayment of a term loan availed by the petitioner from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. On approaching the Chief Judicial Magistrate Court by invoking Section 14(1), an Advocate Commissioner was appointed to take over possession of the immovable property, which is a secured asset. Ext.P2 is the notice issued by the Advocate Commissioner requiring the petitioner to hand over possession of the property in question. 2. According to the petitioner, the coercive steps were pursued without acceding to his request to grant time for payment of the balance outstanding, in a phased manner. It is submitted that, if the petitioner is ousted from the 2 W.P.(C).No.14402 of 2011 property in question, that will put him to severe prejudice. Hence the petitioner seeks interference of this Court. 3. Heard ; standing counsel appearing for the respondent Bank. It is submitted that the loan in question was availed in the year 2006 and the petitioner had committed consecutive defaults. It is further mentioned that, inspite of availing the loan to the tune of Rs.3 lakhs, the petitioner had repaid only a sum of Rs.49,000/-. The loan account is remaining defaulted from the year 2008 onwards, is the submission. 4. Considering the effective statutory remedy provided under the SARFAESI Act, it may not be justified on the part of this Court to interfere with the proceedings. However, learned counsel for the petitioner made an appeal to this Court to permit payment of the entire balance in instalments within a reasonable time, on the basis of a specific undertaking that the petitioner is relinquishing all challenges raised against the proceedings and that he is relinquishing rights if any available to invoke statutory 3 W.P.(C).No.14402 of 2011 remedy. Even though interference on merits is not warranted, I am of the view that, indulgence can be shown in permitting the petitioner to pay off the entire liability, within a reasonable time in instalments. 5. Accordingly, the writ petition is disposed of directing the respondent Bank to keep in abeyance all further coercive steps for dispossession and sale of the property, subject to condition of the petitioner remitting the entire balance outstanding, including interest and expenses if any due, in 6 (six) equal monthly instalments, falling due on or before 30.6.2011 and on or before the last day of the succeeding months. 6. It is made clear that the petitioner will be at liberty to approach the respondent Bank seeking waiver of interest/penal interest and expenses to the possible extent. It is made clear that the directions contained herein above will not stand in the way of the respondent Bank considering such request favourably. 7. It is made clear that on the event of default in 4 W.P.(C).No.14402 of 2011 payment of any one of the instalments as stipulated above, the respondent Bank will be free to proceed with further steps, on the basis of the notices already issued, and on such event the petitioner will be precluded from raising any subsequent challenge. C.K.ABDUL REHIM, Judge ami/