IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 14TH JUNE 2011 / 24TH JYAISHTA 1933 WP(C).No. 13180 of 2011(V) --------------------------------------- PETITIONER(S): ----------------------- MRS. VIJAYAKUMARI, PROPRIETRIX, M/S. VIJAYAM MILLS, KALLOTHARA HOUSE, ALA. P.O, CHENGANNUR. BY ADV. SRI.G.HARIHARAN, SRI.PRAVEEN HARIHARAN. RESPONDENT(S): -------------------------- 1. ANDHRA BANK, MANNIL BUILDING, GOVERNMENT HOSPITAL JUNCTION, M.C. ROAD, CHENGANNUR - 689 121, REPRESENTED BY ITS CHIEF MANAGER. 2. TAHSILDAR, CHENGANNUR, ALAPPUZHA DISTRICT - 689 121. 3. R. RAJESH, ADVOCATE COMMISSIONER, (APPOINTED BY THE CHIEF JUDICIAL MAGISTRATE COURT), ALAPPUZHA IN C.M.P NO. 1996/2011, ALAPPUZHA), ALAPPUZHA - 688 001. R1 BY ADV. SRI.ABRAHAM MATHEW (VETTOOR). R2 BY SR. GOVT. PLEADER MR.MATHEW GEORGE VADAKKEL. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14/06/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs WP(C).No. 13180 of 2011(V) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: COPY OF THE LOAN SANCTIONING ORDER ISSUED BY THE 1ST RESPONDENT BANK. EXT.P2: COPY OF THE NOTICE OFFERING SETTLEMENT ISSUED BY THE 2ND RESPONDENT IN CONNECTION WITH THE LOAN AVAILED BY THE PETITIONER. EXT.P3: COPY OF THE OFFER MADE BY THE PETITIONER BEFORE THE 1ST RESPONDENT UNDER ONE TIME SETTLEMENT. EXT.P4: COPY OF THE COMMUNICATION DATED 10/08/2010 ISSUED BY THE 1ST RESPONDENT. EXT.P5: COPY OF THE NOTICE DATED 12/04/2011 OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002. EXT.P6: COPY OF THE NOTICE DATED 03/05/2011 BY THE 3RD RESPONDENT. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A. TO JUDGE rs C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 13180 of 2011 --------------------------------- Dated this the 14th day of June, 2011 JUDGMENT Consequent to default committed by the petitioner in repayment of a term loan as well as a working capital loan availed from the respondent Bank, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) was initiated against the immovable property, which is the secured asset. On invoking section 14(1) the 1st respondent Bank had approached the Chief Judicial Magistrate Court and an Advocate Commissioner was appointed to take over possession of the property. Ext.P6 is the notice issued by the Advocate Commissioner . According to the petitioner, the coercive steps were pursued without acceding to her request to permit payment of the balance amounts in a phased manner within a reasonable time. 2. Pursuant to an interim order issued by this court on 6.5.2011, dispossession was stayed subject to condition of the petitioner remitting a sum of Rs.50,000/- on or before 21.5.2011 WP(C) .13180/2011 2 and a further sum of Rs.25,000/- on or before 10.6.2011. It is submitted that the stipulations has already been complied with. 3. Considering the fact that the petitioner has not availed the statutory remedy as provided under section 17(1) of the Act, it may not be justified on the part of this court to interdict with the proceedings. However learned counsel appearing for the petitioner made an appeal to this court to permit payment of the entire balance in a phased manner, on the basis of an undertaking that the petitioner is relinquishing all challenges raised against the proceedings and that she is not intending to pursue any statutory remedy. 4. Learned counsel for the 1st respondent Bank submitted that the balance outstanding under the two loan accounts will come to more than Rs.4,00,000/-, less the amount paid by virtue of the interim order. 5. Considering the limited relief sought for, I am of the view that, eventhough interference on merits is not warranted, indulgence can be shown in permitting the petitioner to wipe off the liability in instalments within a reasonable time. 6. Accordingly, the writ petition is disposed of directing respondents to keep in abeyance all further coercive steps for WP(C) .13180/2011 3 dispossession and sale of the property, subject to condition of the petitioner remitting the entire amounts, due in two loan accounts 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. 7. It is made clear that on the event of default committed in payment of any one of the instalments as stipulated above, the respondents will be free to proceed with further steps on the basis of the proceedings already initiated before the Chief Judicial Magistrate Court; and on 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 pmn/ WP(C) .13180/2011 4