IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 15TH JUNE 2011 / 25TH JYAISHTA 1933 OP (DRT).No. 1116 of 2011() ---------------------------------------- SA.210/2009 of DEBT RECOVERY TRIBUNAL, ERNAKULAM .................... PETITIONERS ----------------------- 1. INDUS MULTI BUSINESS CENTRE PVT.LTD., A COMPANY REGISTERED UNDER THE COMPANIES ACT, HAVING ITS REGISTERED OFFICE AT 19/2026 F, 4TH FLOOR, INDUS AVENUE, KALLAI ROAD, KOZHIKODE-673 002, REPRESENTED BY ITS MANAGING DIRECTOR, MR.HAMZA.P.A. 2. HAMZA.P.A, SON OF LATE ABDULLA HAJI, AGED , RESIDING AT CRESCENT HOUSE, NADAKKAVU P.O., KOZHIKODE. BY ADV. SRI.T.G.RAJENDRAN RESPONDENT(S): ---------------------------- 1. FEDERAL BANK LTD., S.M.STREET BRANCH, KOZHIKODE REPRESENTED BY ITS MANAGER. 2. THE AUTHORISED OFFICER, (CHIEF MANAGER), FEDERAL BANK LTD., REGIONAL OFFICE, FEDERAL TOWERS, MAVOOR ROAD, KOZHIKODE-673 016. R1 & R2 BY ADV. SRI.MOHAN JACOB GEORGE SMT.P.V.PARVATHI SMT.REENA THOMAS SRI.L.RAM MOHAN THIS OP (DEBT RECOVERY TRIBUNAL) HAVING COME UP FOR ADMISSION ON 15/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts OP(DRT)NO.1116/2011 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE ORDER DATED 23/04/2009 IN I.A.NO.815/2009 IN SA NO.210/2009 OF THE DRT ERNAKULAM. P2 COPY OF THE RECEIPT DATED 14/05/2009 EVIDENCING IN DEPOSIT OF RS.10,00,000/-. P3 COPY OF THE ORDER DATED18/1/2011 PASSEDBY THE DEBT RECOVERY TRIBUNAL. P4 COPY OF THE RECEIPT DATED 16/02/2011 EVIDENCING IN DEPOSIT OF RS.2,50,000/-. P5 COPY OF THE I.A.NO.504/2011 FILED IN SA.NO.210/2009. P6 COPY OF THE ORDER DATED 01/03/2011 PASSED BY THE DEBT RECOVERY TRIBUNAL IN SA 210/2009. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts C.K.ABDUL REHIM, J. ------------------------------- O.P.(DRT) No.1116 of 2011 ------------------------------- Dated this the 15th day of June, 2011. O R D E R It is noticed that S.A.No.210/09 filed by the petitioners before the Debt Recovery Tribunal, Ernakulam, against the impugned proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), is pending consideration and disposal. The said Tribunal had issued an interim order staying further proceedings, subject to condition of the petitioners depositing a sum of Rs.10 lakhs. It is stated that, inspite of compliance of such condition imposed, the interim stay was extended by the Tribunal by imposing further condition, through Ext.P3 order, directing the petitioners to deposit a further sum of Rs.10 lakhs and also directing to approach the Bank for settlement. The petitioners deposited a sum of Rs.2,50,000/- and approached the Tribunal seeking enlargement of time. But the DRT had vacated the interim stay through Ext.P6 order. When 2 O.P.(DRT) No.1116 of 2011 further coercive steps were proceeded against, this writ petition was filed. 2. Even though interference was not justified in view of pendency of the matter before the DRT, this Court had shown indulgence in restraining the respondents from proceeding with coercive steps, subject to condition of the petitioner remitting a sum of Rs.7,50,000/- on or before 31.3.2011. Subsequently, on 8.4.2011 the interim order was extended, subject to condition of payment of a further sum of Rs.8 lakhs, in two instalments on or before 30.4.2011 and 21.5.2011. It is reported that the interim orders were already complied with and after filing of this writ petition, the petitioner had remitted a total sum of Rs15,50,000/-. 3. Present grievance of the petitioners is that, inspite of approaches made before the respondent Bank seeking 'one time settlement', the Bank had unilaterally rejected such request, without assigning any proper reason. Per contra, learned counsel for the respondent Bank submitted 3 O.P.(DRT) No.1116 of 2011 that the total amount outstanding at present is around Rs.32 lakhs, whereas the petitioners have offered payment of Rs.5 lakhs only, which is not acceptable. 4. However, it is noticed that, the matter is now pending adjudication before the DRT in S.A.No.210/09. It is also noticed that the petitioner had effected considerable payments, after initiation of the proceedings under the SARFAESI Act. Under such circumstances, I am of the view that, interest of justice will be served if a direction is issued to the DRT to dispose of the matter on an early basis and till then to restrain further recovery steps. It will be also left open to the petitioners to make appropriate offer for settlement of the account, in the meanwhile. 5. Therefore, the writ petition is disposed of directing the DRT to consider and dispose of S.A.No.210/09 pending on the files of the Tribunal, after affording reasonable opportunity to all parties concerned, at the earliest possible. Respondents are restrained from proceeding with further steps of recovery pending disposal of the securitisation 4 O.P.(DRT) No.1116 of 2011 application. It is made clear that it will be open for the parties to arrive at any settlement during pendency of the securitisation application. C.K.ABDUL REHIM, Judge ami/