IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 3RD AUGUST 2010 / 12TH SRAVANA 1932 WP(C).No. 23888 of 2010(I) ------------------------------------- PETITIONER(S): ------------------------ 1. SRI.R.AJITH KUMAR, V.V.HOUSE, NEAR AMMAN KOVIL, NEDUMANGAD, THIRUVANANTHAPURAM. 2. SMT.SHOBY, W/O.SRI.R.AJITH KUMAR, V.V.HOUSE, NEAR AMMAN KOVIL, NEDUMANGAD, THIRUVANANTHAPURAM. BY ADV. SRI.V.S.BABU GIREESAN RESPONDENT(S): ------------------------- THE ASSISTANT GENERAL MANAGER, SMECCC, STATE BANK OF INDIA, LMS COMPOUND, THIRUVANANTHAPURAM. BY ADV. SRI.N.RAJAGOPALAN NAIR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J -------------------------------------------- WP(C) NO. 23888 OF 2010 -------------------------------------------- Dated this the 3rd day of August, 2010 JUDGMENT The petitioners availed a medium term loan of Rs.1 crore from the respondent Bank creating security interest over different items of properties. But the repayment could not be effected on time as scheduled and the petitioners turned to be defaulters, which made the respondent Bank to declare the accounts as 'NPA' and proceed with steps under the SARFAESI Act. The petitioners have been made to rush to this Court in view of Ext.P4 petition filed by the petitioner before the concerned Chief Judicial Magistrate's Court under Section 14 for taking over the physical possession of the property. 2. The learned counsel for the petitioners submits that the petitioners are taking earnest efforts to discharge the liability within the shortest possible time and substantial payment will be effected forthwith, so as to cause release of the title deeds in respect of the items 1 and 2 mentioned in Ext.P4 and to have the same sold by way of private sale, to generate funds to clear the balance amount forthwith. It is also stated that the balance liability will definitely stand secured on the basis of the security interest created over the other remaining properties. 3. The learned counsel for the Bank submits on instructions that 2 WP(C) No. 23888/2010 the valuation effected in respect of the items 1 and 2 property shows that the first one is having a value of Rs.11 lakhs and the second one Rs.26.6 lakhs, thus coming to a total of Rs.37.6 lakhs. Unless and until, the said amount of Rs.37.6 lakhs is paid by the petitioner, releasing of the title deeds in respect of items 1 and 2 is not liable to be entertained. The learned counsel for the petitioner submits that, the petitioner is ready and willing to clear the said amount; simultaneously adding that the petitioner might be permitted to file a representation before the Bank with regard to the clearance of the mode of clearing the remaining liability, enabling the petitioners to clear the same in a phased manner, giving appropriate concessions/allowances, if any. 4. After considering the rival submissions, this Court observes that the petitioner is at liberty to deposit Rs.37.6 lakhs to the respondent Bank, on which event, the title deeds in respect of the properties 1 and 2 shall be released by the respondent Bank as agreed and undertaken through the learned counsel. On satisfying the said liability as above, it will be for the petitioner to approach the Bank by filing a proper representation as to the manner in which the remaining liability is sought to be liquidated, which if filed within a further period of two weeks shall be considered and appropriate orders shall be passed conveying the outcome to the petitioner within one month thereafter. The recovery proceedings stated as being 3 WP(C) No. 23888/2010 pursued against the petitioner shall be kept in abeyance, for the time being. It is also made clear that if any default is committed by the petitioner, the respondent will be free to proceed with further steps. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc