IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 10TH FEBRUARY 2010 / 21ST MAGHA 1931 WP(C).No. 16618 of 2009(V) -------------------------- PETITIONERS: --------------- 1. K.A.BALAN,S/O.APPU,AGED 50 YEARS, RESIDING AT "KRISHNA KRIPA", VIVEKANANDA ROAD,P.O.PUZHAKKAL, THRISSUR DISTRICT-680553. 2. K.A.VIJAYAN,S/O.APPU,AGED 55 YEARS, RESIDING AT "KRISHNA KRIPA", VIVEKANANDA ROAD,P.O.PUZHAKKAL, THRISSUR DISTRICT-680553. BY ADV. SRI.A.RANJITH NARAYANAN ADV. SMT.A.SIMI RESPONDENTS: --------------- 1. CANARA BANK,WEST PALACE ROAD, TRICHUR-680 022,REP.BY ITS AUTHORIZED OFFICER. 2. STATE OF KERALA, REP.BY THE SECRETARY TO GOVT.OF KERALA, INDUSTRIES DEPT.,GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 3. STATE OF KERALA, REP.BY THE SECRETARY TO GOVT.OF KERALA, FINANCE DEPT.,GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 4. TRICHUR HANDICRAFTS WORKER'S INDUSTRIAL (WORKSHOP),CO-OPERATIVE SOCIETY LTD.NO. C.IND(R) 193,THRISSUR,REP.BY ITS PRESIDENT. R1 BY ADV. MR. P. GOPINATH MENON. R2 AND R3 BY GOVERNMENT PLEADER ADV. MR. MATHEW GEORGE VADAKKEL. R4 BY ADV. SRI.P.SANTHOSH (PODUVAL) THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10/02/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 16618 of 2009(V) APPENDIX PETITIONERS' EXHIBITS: EXT.P1 : TRUE COPY OF BYE LAW OF 4TH RESPONDENT SOCIETY EXT. P2 : TRUE COPY OF MINUTES DATED 10.11.2006 EXT. P3(a) : NOTICE UNDER S. 13(2) SARFAESI ACT TO SOCIETY P3(b) : NOTICE UNDER S.13(2) SARFAESI ACT TO 1ST PETITIONER. P3(c) : NOTICE UNDER S.13(2) SARFAESI ACT TO 2ND PETITIONER. EXT.P4 : TRUE COPY OF MINUTES DATED 27.02.2009 EXT.P5 : TRUE COPY OF REPRESENTATION DATED 02.03.2009 BEFORE 2ND RESPONDENT. EXT.P6 : TRUE COPY OF REPRESENTATION DATED 02.03.2009 BEFORE 3RD RESPONDENT. EXT.P7 : TRUE COPY OF NOTICE UNDER S. 13(4) OF THE SARFAESI ACT. EXT.P8 : TRUE COPY OF REPORT ON C REDIT DELIVERY TO MICRO AND SMALL ENTERPRISES DATED 16.12.2008 DOWNLOADED FROM THE WEBSITE OF THE RBI. EXT.P9 : TRUE COPY OF LETTER/REPRESENTATION DATED 17.06.2009 ALONG WITH POSTAL RECEIPTS. EXT.P10 : TRUE COPY OF SALE NOTICE DATED 18.01.2010 ALONG WITH COVERING LETTER. EXT.P11 : TRUE COPY OF RELEVANT PAGE OF MALAYALA MANORAMA DATED 22.01.2010. EXT.P12 : TRUE COPY OF REPRESENTATION TO 1ST RESPONDENT DATED 23.01.2010. /TRUE COPY/ P.S. TO JUDGE. P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 16618 OF 2009 ......................................................................... Dated this the 10th February, 2010 J U D G M E N T The petitioners, who are stated as the Directors of the 4th respondent-Society had created security interest over the property in question in connection with a loan extended by the first respondent in favour of the 4th respondent - Society . It is the case of the petitioners that the Society did not pay any heed to clear the due amount on time, which compelled the respondent Bank to pursue the steps under the SARFAESI Act , which is sought to be intercepted in this Writ Petition. 2. The learned Counsel for the petitioners submits that the petitioners have already approached the second respondent/Government to cause to write off the liability to the respondent Bank and that the proceedings are pending consideration. The learned Counsel for the 4th respondent submits that the Society is taking every earnest effort to clear the outstanding liability to the Bank and that the entire liability will be wiped out at the earliest possible opportunity, at any rate within ten months. It is in this circumstance, the petitioners W.P.(C) No. 16618 OF 2009 2 have approached this Court, by filing I.A.No.1603 of 2010 seeking for ten months' time to wipe out the entire liability. 3. The learned Counsel appearing for the respondent Bank, with reference to the statement filed in the Writ Petition submits that there is absolutely no merit or bonafides in the contentions raised from the part of the petitioners and that the Bank is very much at liberty to proceed with the steps under the SARFAESI Act, as the said proceedings have been taken strictly in conformity with the statutory prescriptions. It is also brought to the notice of this Court that the present liability is above Rs. Seventeen lakhs with interest and cost. 4. Considering the particular facts and circumstances and also the persuasive submissions made by the learned Counsel for the petitioners, referring to the sale of the property proposed to be held on 25.02.2010, this Court finds it fit and proper to have the matter disposed of, permitting the petitioners to wipe out the entire liability in a phased manner. Accordingly, the petitioners are directed to deposit a sum of Rs. Five lakhs on or before 10.03.2010 and the balance shall be cleared by way of W.P.(C) No. 16618 OF 2009 3 'five' equal monthly installments, the first of which shall be effected on or before the 10th April, 2010 to be followed by similar installments to be effected on or before the 10th of the succeeding months. Subject to the above, the recovery proceedings stated as pursued by the first respondent shall be kept in abeyance. It is made clear that, if any default is committed by the petitioners in satisfying the liability as above, the Bank will be at liberty to proceed with further steps from the stage where it stands now for realisation of the entire amount in a lump sum. It is also made clear that this will be without prejudice to the rights and liberties of the petitioners to proceed against the 4th respondent-Society for recovering the due amount, if permissible in law. The Writ Petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. lk