IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 24TH FEBRUARY 2010 / 5TH PHALGUNA 1931 WP(C).No. 5503 of 2010(K) ------------------------------------ PETITIONER: ------------------ M/S.GRAND AUTOMOBILES, CHULLIKKAL, KOCHI-5, REPRESENTED BY ITS MANAGING PARTNER A.J.RENOLD. BY ADV. SRI.C.P.RAVIKUMAR RESPONDENT: --------------------- STATE BANK OF INDIA REPRESENTED BY ITS AUTHORIZED OFFICER AND CHIEF MANAGER, STRESSED ASSETS RESOLUTION CENTRE, 40/974 R.S.BUILDING, 2ND FLOOR, M.G.ROAD, KOCHI 682011. BY STANDING COUNSEL SRI.P.V.SURENDRANATH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/02/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.Ramachandra Menon, J. ------------------------------------------ W.P.(C) No.5503 of 2010 ------------------------------------------ Dated this the 24th day of February, 2010 JUDGMENT The petitioner had availed an overdraft facility from the respondent Bank in the year 2005 to the extent of Rs.22 lakhs in connection with his automobile business. However, the repayment could not be effected as scheduled because of some unfortunate circumstances coupled with the sudden downfall of the business which made the petitioner a defaulter. The respondent Bank proceeded to invoke the provisions contained in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 which in turn forms the subject matter of challenge in this writ petition. 2. Learned Standing Counsel appearing for the Bank submits on instructions that there is absolutely no merit or bona fides in the averments and allegations made in the writ petition W.P.(C) No.5503 of 2010 - 2 - and the petitioner all the more was continuing as defaulter without paying any heed to the requests made by the Bank to clear the outstanding liability and it was in such circumstances that the Bank was constrained to proceed with coercive steps which, however, have been pursued in strict conformity with the relevant provisions of the Statute and the same is not assailable in such circumstances. 3. Learned counsel for the petitioner submits that the limited relief now pressed in this writ petition is to have some breathing time to clear the entire outstanding liability by way of reasonable instalments. 4. Considering the facts and circumstances and since the outstanding liability comes to more than Rs.23 lakhs, the petitioner is directed to deposit a sum of Rupees five lakhs within two weeks and another five lakh rupees on or before 31st March, 2010. The balance amount shall be cleared by the petitioner by way of five equal monthly instalments, the first of W.P.(C) No.5503 of 2010 - 3 - which shall be effected on or before 30th April, 2010 to be followed by similar instalments to be effected on or before 30th of the succeeding months. Subject to the above, the recovery proceedings initiated against the petitioner pursuant to Ext.P1 shall be kept in abeyance. It is made clear that if any default is committed in clearing the liability, the respondent Bank is at liberty to proceed against the petitioner and recover the entire amount in lump. Writ petition is disposed of as above. P.R.Ramachandra Menon, Judge vns