IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 30TH SEPTEMBER 2009 / 8TH ASWINA 1931 WP(C).No. 25876 of 2009(D) -------------------------- PETITIONER: --------------- JOSE LOYIS, PROPRIETOR, "TURBO PLUS", IIIRD FLOOR, KESAVA TOWERS, PULIMOODU, TRIVANDRUM-1. BY ADVS. SRI.SIBY MATHEW SRI.PHILIP J.VETTICKATTU SRI.B.PREMNATH (E) RESPONDENTS: --------------- 1. THE AUTHORIZED OFFICER, ICICI BANK LIMITED, FELICITY SQUARE, OPPOSITE AGS OFFICE, NEAR STATUE, M.G.ROAD, TRIVANDRUM. 2. ICICI BANK LIMITED, FELICITY SQUARE, OPPOSITE AGS OFFICE, NEAR STATUE, M.G.ROAD, TRIVANDRUM, REPRESENTED BY ITS AUTHORIZED OFFICER. BY ADVS. SRI.KKM.SHERIF SRI.LAL K.JOSEPH SRI.A.A.ZIYAD RAHMAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 30/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Shg/ WP(C).No. 25876 of 2009(D) APPENDIX PETITIONER'S EXHIBITS: P1. COPY OF RECEIPT, DATED 08.01.2009, ISSUED BY THE RESPONDENT BANK TO THE PETITIONER. P2. COPY OF NOTICE U/S. 13 (2) OF THE SECURITIZATION ACT ISSUED TO THE PETITIONER P3. COPY OF OBJECTION, DATED 27.08.2009 FILED BY THE PETITIONER BEFORE THE RESPONDENT BANK. RESPONDENTS' EXHIBITS: NIL //TRUE COPY// P.A. TO JUDGE shg/ C.K. ABDUL REHIM, J - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 25876 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 30th day of September, 2009 J U D G M E N T 1. Petitioner is the proprietor of an IT Unit who availed a loan from the respondent Bank to the tune of Rs.56 lakhs, during the year 2008, promising to repay the loan in equal monthly installments of Rs.79,338/- each. After repayment of few monthly installments the petitioner could not continue payment due to unforeseen crisis in the business activities. It is submitted that inspite of severe financial situation he had paid an amount of Rs.1,60,000/- on 8.01.2009. Now the petitioner is aggrieved by proceedings initiated by the respondent Bank under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (for short the SARFAESI Act) against the secured assets. W.P.(C)No. 25876 of 2009 -2- According to the petitioner he is ready and willing to regularise the loan account by paying the defaulted installments, provided a reasonable time is granted and to continue payment of the balance as per the original schedule of re-payment. 2. Heard standing counsel for the respondent Bank, who on the basis of the instructions submitted that, the arrears outstanding is about Rs.9.79 lakhs. It is further submitted that altogether the petitioner had availed three loans and payments in the other two loans are also in arrears. Under such circumstances the respondent Bank is not favoring regularisation of the account. 3. Having considered the rival contentions and facts and circumstances of the case I am inclined to show some indulgence for permitting the petitioner to regularise the loan account by paying the defaulted installments along with over due interest in installments and to continue W.P.(C)No. 25876 of 2009 -3- payment of the future installments as per the original schedule. 4. Under the above said circumstances the Writ Petition is disposed of directing the respondents to keep in abeyance all further steps pursuant to Ext.P2 notice, if the petitioner makes payment of the amount pertaining to the defaulted installments along with over due interest if any liable, in five equal monthly installments starting from 15.10.2009 and on or before the 15th day of every succeeding month. The petitioner shall also make payment of the regular installments due from October 2009 onwards along with the above payment. If payments as directed above is made promptly, the respondents shall permit the petitioner to continue payment of the future installment as per the original schedule. 5. It is made clear that in case of failure to pay any of the installments, the respondent Bank will be at liberty to W.P.(C)No. 25876 of 2009 -4- take further steps pursuant to Ext.P2, in accordance with law and in such case the petitioner is precluded from raising any challenge against the proceedings at any subsequent point of time before this court or before any other forum. C.K. ABDUL REHIM JUDGE W.P.(C)No. 25876 of 2009 -5- shg/