IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 22ND SEPTEMBER 2010 / 31ST BHADRA 1932 WP(C).No. 27949 of 2010(P) ---------------------------------------- PETITIONER(S): ------------------------ JOSSY VARGHESE, S/O.T.J.VARGHESE, THOPPIL HOUSE, KURISUMMOODU P.O., CHANGANASSERY, KOTTAYAM DISTRICT. BY ADVS. SRI.M.SASINDRAN, SRI.M.V .BIPIN. RESPONDENT(S): --------------------------- 1. STATE BANK OF TRAVANCORE, REPRESENTED BY ITS MANAGER, MAMOODU BRANCH, KOTTAYAM DISTRICT-686 001. 2. AUTHORISED OFFICER (CHIEF MANAGER (ADVANCES), STATE BANK OF TRAVANCORE, REGION II, ZONAL OFFICE, KOTTAYAM, PIN-686 001. R1 & R2 BY ADV. SRI.SATHISH NINAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/09/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.27949/2010 P APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE NOTICE DTD. 5/08/2010 ISSUED BY THE 2ND RESPONDENT UNDER RULE 8(6) OF THE SECURITY INTEREST (ENFORCEMENT) RULES 2002. P2: COPY OF THE SALE PUBLICATION APPEARED IN MATHRUBHOOMI DAILY DTD. 6/08/2010. RESPONDENT'S ANNEXURES: ANNEXURE A III: COPY OF THE AGREEMENT DTD. 10/08/2010. ANNEXURE A IV: COPY OF THE DOCUMENT NO.3310/95 WHICH WOULD SHOW THE TRANSFER OF 19/20 SHARES ONLY. /TRUE COPY/ P.A.TO JUDGE Kss C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.27949 of 2010 ------------------------------------------- Dated this the 22nd day of September, 2010 J U D G M E N T ---------------------- Ext.P2 notice of sale issued under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is under challenge in this writ petition. Consequent to default committed in repayment of loan availed by the petitioner from the respondent Bank, immovable property which is the secured asset was taken over possession under Section 13(4). As per Exts.P1 & P2 notices, the total amount in arrears is Rs.53,00,108/-, as on 30.9.2008. The petitioner is disputing correctness of the balance amount demanded. According to the petitioner, he had already arranged for private sale of the property and approached the respondent Bank seeking time for payment of the balance amount till 31.12.2010. Since W.P.(C).27949/10-P -2- such request was not allowed by the respondent Bank, this writ petition is filed. 2. As per Ext.P2 notice sale of the property was proclaimed on 30.9.2010. It is submitted by learned counsel appearing for the respondent Bank that only one Tender was received pursuant to Ext.P2 notice and the same was not opened. Considering the fact that the petitioner has not raised any objection against the demand made under Section 13(2) and that he has not approached the statutory authority challenging any action resorted to by the Bank under Section 13(4), I find no reason to interfere with the sale proceedings impugned in this writ petition. 3. However, it is stated that the petitioner is prepared to relinquish all challenges against the proceedings and he need only time upto 31.12.2010 to pay off the entire liability. Learned counsel appearing for the respondent Bank submitted that the petitioner had other liabilities to be settled with respect to loan availed from another branch of the respondent Bank. It is further W.P.(C).27949/10-P -3- submitted that there is an attachment effected by the Debts Recovery Tribunal with respect to the property in question, in connection with the said loan. 4. Having considered the facts and circumstances, I am of the opinion that eventhough interference on merits is not at all warranted, indulgence can be shown in the matter of permitting the petitioner to pay off the liability within a reasonable time. 5. In the result, the respondents are directed to keep all further proceedings of sale in abeyance, provided the petitioner remits the entire arrears including future interest and expenses if any in due in 4 (four) equal monthly installments falling due on or before 15.10.2010 and on or before the 15th day of the succeeding months. 6. It is made clear that on the event of default in payment of any of the installments, the respondents will be at liberty to proceed with further steps including opening of the tender and confirmation of the sale, and on such event the petitioner will be precluded from raising any W.P.(C).27949/10-P -4- subsequent challenge against such proceedings either before this court or before any other forum. 7. It is also made clear that attachment effected on the property with respect to the other loans availed by the petitioner will continue, subject to outcome of the matter pending before the Debts Recovery Tribunal, even in case the petitioner settle payment of the entire outstanding with respect to the loan which is subject matter of this writ petition. C.K.ABDUL REHIM, JUDGE. okb