IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 25TH NOVEMBER 2009 / 4TH AGRAHAYANA 1931 WP(C).No. 30173 of 2009(N) -------------------------- PETITIONER(S): --------------- SABEER HUSSAIN.P.S., PUTHUPARAMBIL, MUNDAKAYAM P.O., KOTTAYAM DIST. BY ADV. SRI.P.N.SASIDHARAN RESPONDENT(S): --------------- 1. MEENACHIL EAST URBAN CO-OPERATIVE BANK LTD.NO.4226, REGISTERED OFFICE, POONJAR, POONJAR THEKKEKARA P.O., KOTTAYAM DISTRICT. REPRESENTED BY ITS AUTHORISED OFFICER, (GENERAL MANAGER). 2. MEENACHIL EAST URBAN CO-OPERATIVE BANK LTD.NO.4226, REGISTERED OFFICE, POONJAR, POONJAR THEKKEKARA P.O., KOTTAYAM DISTRICT. REPRESENTED BY ITS SECRETARY. 3. UNION OF INDIA, REPRESENTED BY ITS SECRETARY. MINISTRY OF FINANCE, NEW DELHI. ADV. SRI.T.P.M.IBRAHIM KHAN,ASST.SOLICITOR FOR R3 SRI.SHAJI THOMAS PORKKATTIL FOR R1,2 SRI.T.V.VINU FOR R1,2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 25/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 30173 of 2009(N) APPENDIX PETITIONER'S EXHIBITS; Exhibit P1: True Photostat copy of the Notice dated 15.6.2009 issued under section 13 (2) of the SARFAESI Act by the 1st respondent. RESPONDENTS EXHIBITS: Nil /True Copy/ P.A.TO JUDGE C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 30173 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 25th day of November, 2009 J U D G M E N T 1. Challenge in this writ petition is against the proceedings initiated by the respondent Bank under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Consequent to default committed in repayment of loan availed by the petitioner from the 2nd respondent Bank, immovable property, which is the secured asset of the loan transaction, has been proceeded against. According to the petitioner he is ready and willing to make payment of the entire arrears, provided respondents 1 & 2 permits such payment within a reasonable time in installments. 2. Learned standing counsel appearing for respondents 1 & 2 on instructions submitted that, the loan was availed as early as in the year 2007 to the tune of W.P.(C)No. 30173 of 2009 -2- Rs.10 lakhs and the petitioner had defaulted in remitting the monthly installments regularly. Now the loan account is categorized as 'NPA' and steps are being persued under the provisions of the SARFAESI Act. Considering the fact that the loan account is in chronic default the Bank is not favouring in permitting the petitioner with any extended time for remitting the balance due. 3. When the above writ petition was moved, this court granted an interim stay against dispossession of the petitioner from the property, on condition of remitting Rs.1,50,000/-, which the petitioner had already paid. Considering the 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 within a reasonable time. 4. Accordingly the writ petition is disposed of directing the petitioner to make payment of a further sum of Rs.2,00,000/- on or before 31.12.2009. The respondents are directed to keep in abeyance further coercive steps till such W.P.(C)No. 30173 of 2009 -3- date. If the petitioner makes payment of the said amount the respondent shall issue a balance statement showing the net amount outstanding, after crediting all payments and after considering waiver of interest/penal interest and expenses, if any possible. The petitioner shall continue payment of the said balance, along with future interest if any liable, in six (6) equal monthly installments falling due on or before 31.01.2010 and on or before last day of the succeeding months. 5. It is made clear that on the event of failure to pay any of the installments as stipulated above, the respondent Bank will be free to proceed with further steps pursuant to the notices already issued, and on any such event the petitioner will be precluded from raising any subsequent challenge against such proceedings either before this court or before any other forum. C.K. ABDUL REHIM JUDGE shg/