IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 16TH SEPTEMBER 2009 / 25TH BHADRA 1931 WP(C).No. 25526 of 2009(I) -------------------------- CMP.5380/2009 of C.J.M., ALAPPUZHA .................... PETITIONER(S): --------------- P.V.RAJU, AGED 50 YEARS, S/O. VARGHESE, POONKAVU, PATHIRAPPALLY P.O., ALAPPUZHA DISTRICT. BY ADV. SRI.K.C.SUDHEER RESPONDENT(S): --------------- 1. UNION BANK OF INDIA, REPRESENTED BY ITS BRANCH MANAGER, ALAPPUZHA BRANCH, ALAPPUZHA DISTRICT. 2. THE STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY TO THE GOVERNMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 3. UNION OF INDIA, REPRESENTED BY CHIEF SECRETARY TO THE GOVERNMENT, UNION SECRETARIAT, NEW DELHI. ADV.SRI.A.S.P.KURUP, S.C.FOR UBI SRI.P. PARAMESWARAN NAIR, A.S.G.I. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.25526 OF 2009 ------------------------------ Dated this the 16th day of September, 2009 J U D G M E N T ---------------------- 1. The petitioner is challenging steps initiated for dispossession of the petitioner from his property pursuant to Ext.P1 notice issued under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI Act) by the Advocate Commissioner appointed by the Chief Judicial Magistrate Court, Alapuzha. The property in question is a secured asset mortgaged in order to secure a loan availed by the petitioner from the 1st respondent Bank. Contention of the petitioner is that on receipt of Ext.P1 notice the petitioner had submitted Ext.P4 representation to the 1st respondent Bank seeking time till December 2009 to pay off the entire arrears and also requesting to keep in abeyance coercive steps till then. Grievance of the petitioner is that without considering Ext.P4, hasty steps are now being initiated for dispossessing the petitioner and for sale of the property in public auction. 2. Heard learned standing counsel for the 1st respondent Bank. It is submitted that the arrears outstanding payment as on W.P.(C).25526/09 2 today is about Rs.4,18,658/-, and the defaulted amount itself will come to Rs.2,36,516/-. Further it is submitted that the Bank has not received any representation from the petitioner as that of Ext.P4. However it is expressed that if the Bank gets a confirmed offer to pay off the liability within 3 months, they may abstain from proceeding with further coercive steps. 3. Having confronted with the situation and contentions of the standing counsel, learned counsel for the petitioner made an offer that if considerable waiver of interest and installment facility for payment is granted the petitioner shall pay off the entire arrears. The standing counsel on the other hand submitted that there is no One Time Settlement scheme prevailing at present, but still waiver of interest to the possible extent can be considered. 4. Considering the rival contentions and the facts and circumstances of the case I am inclined to show indulgence in the matter to permit the petitioner to pay off the entire liability in installments. If the petitioner makes payment of a part of the arrears and approaches the Bank seeking waiver of interest as well as for providing installment facility, then the Bank can be directed to consider the same. 5. Therefore the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.1,00,000/- on or W.P.(C).25526/09 3 before 15.10.09. On payment of the said amount the 1st respondent Bank is directed to consider representation of the petitioner to allow waiver of interest outstanding and also for permitting payment of the balance in installments within a reasonable time. The Bank shall communicate its decision in this regard to the petitioner within a period of 15 days thereafter. The petitioner has to comply with the conditions so stipulated and shall pay off the arrears as per the terms allowed by the Bank. 6. It is made clear that all further coercive steps shall be kept in abeyance till 15.10.09. It is further made clear that the benefit granted as above will stand automatically recalled on the event of the petitioner committing default in making payment as above. It is further made clear that the petitioner is precluded from approaching this Court or any other forum challenging the proceedings initiated under the SARFAESI Act, on any subsequent occasions. C.K.ABDUL REHIM, JUDGE. okb