IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 9TH JUNE 2009 / 19TH JYAISHTA 1931 WP(C).No. 15869 of 2009(C) -------------------------- PETITIONER(S): --------------- 1. R.SHIBUKUMAR, M/S.BENGLAVIL AGENCIES, BENGLAVIL, PAYYANALLOOR P.O., NOORANAD. 2. KUNJIKUTTY AMMA, BENGLAVIL, PAYYANALLOOR P.O., NOORANAD. 3. KRISHNAKUMAR.M.R., M/S.BENGLAVIL TILES CNTRE, BENGLAVIL, PAYYANALLOOR (P.O.), NOORANAD. 4. KANAKKAMMA, W/O.RAGHAVAN NAIR, BENGLAVIL, PAYYANALLOOR (P.O.), NOORANAD. BY ADV. SRI.K.SASIKUMAR RESPONDENT(S): --------------- 1. STATE BANK OF TRAVANCORE, NOORANAD BRANCH, NOORANAD (P.O.), ALAPPUZHA DISTRICT-690 504. REPRESENTED BY ITS MANAGER. 2. TAHASILDAR, MAVELIKKARA. 3. VILLAGE OFFICER, PALAMEL, NOORANAD.P.O. BY SC SATISH NINAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J. ----------------------------------------------- WP(C) NO. 15869 OF 2009 ----------------------------------- Dated this the 9th day of June, 2009 JUDGMENT The proceedings pursued by the respondent Bank under the SARFEASI Act when the the petitioner turned to be a chronic defaulter in repayment of the loan, are under challenge. Various reasons have been stated for the default and the manner in which the petitioner was in capacitated in meeting the obligations. It is the prayer of the petitioner that the loan account might be re-scheduled, so as to enable him to clear the liability in the due course. 2. Learned Counsel appearing on behalf of the Bank, on instructions, submits that there is absolutely no merit in the Writ Petition filed by the petitioner and the Bank had in fact extended maximum sympathy and leniency to enable the petitioner to wipe off the entire liability. 3. Evidently, Ext.P1 and P2 notices issued by the Bank, asking the petitioner to clear the liability, were on 27.09.2004. The aforesaid notices are in respect of two separate loan transactions availed by the petitioner. Since the petitioner did not pay any heed to the above notice, WPC NO.15869/2009 2 Ext.P3, P4 and P5 notices were issued by the Bank in December, 2006, under Section 13(2) of the SARFEASI Act. This also did not evoke any positive response, whereupon the Bank was constrained to move the District Magistrate, Alappuzha for necessary assistance as provided under Section 14(1) of the SARFEASI Act. This was followed by Ext.P7, P8 and P9 sale notices, lastly leading to the publication, notifying the sale to be conducted on 30th of this month as borne by Ext.P11. 4. Learned Counsel appearing for the respondent Bank also submits that in the meanwhile, the petitioner was given yet another opportunity to clear the entire liability, whereby the total amount of more than Rs.35,00,000/- was reduced by the Bank to Rs.27,01,200/-. Despite the intimation given in this regard in March, 2009, the petitioner did not take any earnest effort to avail the benefit. 5. Considering the above facts and circumstances, it cannot but be held that the action pursued by the Bank is quite in tune with the relevant provisions of law and that it cannot be assailed under any circumstances. However, taking note of the submissions from the part of the learned counsel for the petitioner that, the entire liability will positively be cleared within no time, this Court finds that one more opportunity could be given to the petitioner as the last chance, particularly in view of the WPC NO.15869/2009 3 sizable amount involved. Accordingly, the petitioner is directed to pay a sum of Rs.10,00,000/- by way of two equal instalments within six weeks from today; subject to the condition that the first instalment of Rs.5,00,000/- shall be remitted on or before 27th of this month and the second instalment shall be cleared within the total period of six weeks as above. On such event, all further coercive steps being taken against the petitioner shall be kept in abeyance, subject to the further condition that the petitioner shall clear the entire balance amount/liability by way of four equal monthly instalments commencing from 30th July, 2009. It is also made clear that if any default is made from the part of the petitioner in clearing any of the instalments as above, the Bank will be the liberty to proceed with further coercive steps, from the stage where it stands now, for realisation of the entire amount by way of lumpsum. The Writ Petition is disposed of accordingly. (P.R.RAMACHANDRA MENON, JUDGE) dnc