IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 7TH MARCH 2011 / 16TH PHALGUNA 1932 WP(C).No. 6041 of 2011(E) -------------------------------------- PETITIONER(S): ------------------------ ABDUL HAMEED MARAKKAR, S/O.A.P.A.K. ICHAVA MARAKKAR, ERAMAKKAVEETTIL PUTHIYAKATH HOUSE, CHETTIPADI POST, MALAPPURM DISTRICT. BY ADV. SRI.C.M.MOHAMMED IQUABAL RESPONDENT(S): --------------------------- 1. THE SOUTH INDIAN BANK LTD.,REGIONAL OFFICE KOZHIKODE, P.B.NO.933,CHAKKORATHUKULAM WEST HILL P.O., KOZHIKODE, PIN- 673 005. REPRESENTED BY CHIEF MANAGER. 2. THE SOUTH INDIAN BANK LTD., BRANCH OFFICE, PARAPPANANGADI, POST PARAPPANANGADI- MALAPPURAM DISTRICT-673 005. REPRESENTED BY ITS MANAGER. R1 & R2 BY ADV. SRI.GEORGE VARGHESE,SC FOR SOUTH INDIAN BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.6041 of 2011 ------------------------------------------- Dated this the 7th day of March, 2011 J U D G M E N T ---------------------- The petitioner had availed a housing loan as well as a 'cash credit facility' from the respondent Bank during the year 2007. Consequent to default committed in repayment of instalments, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. When steps against the immovable property, which is the secured asset, was proceeded against, the petitioner had approached this court on an earlier occasion. In Ext.P4 Judgment this court permitted the petitioner to regularise the 'housing loan' account by paying the amounts overdue, within a period of one month from the date of the said judgment. The respondent Bank was directed to permit the petitioner to continue payment of future monthly instalments when the arrears is cleared payment. As far as the 'cash credit facility' is concerned, the petitioner was given liberty to approach the respondent Bank seeking revival of the loan account or seeking waiver and instalment payment. 2. Grievance of the petitioner at present is that eventhough a representation was made on the basis of Ext.P4 Judgment, seeking permission to regularise the 'cash credit W.P.(C).6041/11 -2- facility', the same was declined through a cryptic letter issued as per Ext.P7. The petitioner was informed that, if he is not settling the entire payment before 28.2.2011, proceedings will be taken to take over possession of the immovable property. Complaint of the petitioner is that Ext.P7 letter was issued without considering the request, in view of the directions contained in Ext.P4 Judgment. 3. Learned standing counsel appearing for the respondent Bank, on the basis of instructions, submitted that the cash credit facility could not be revived or regularised since the business for which the loan was availed is remaining defuncted and there is no stock available with respect to the business. 4. Under the above mentioned circumstances I am of the view that indulgence could not be shown in permitting the petitioner to regularise the 'cash credit facility'. It is further noticed that the petitioner has not availed the statutory remedy available against the proceedings initiated under the SARFAESI Act. However, learned counsel for petitioner makes an appeal to this court to permit payment of the amounts due under the 'cash credit facility' in a phased manner, within a reasonable time, on the basis of a specific undertaking that the petitioner is not intending to pursue any challenges against the proceedings by resorting to any remedy available under the statute. W.P.(C).6041/11 -3- 5. Considering the limited relief sought for, I am of the view that, eventhough interference on merits is not justified, the petitioner can be permitted to pay off the entire liability in instalments within a reasonable time. 6. Accordingly the writ petition is disposed of directing the respondents to keep in abeyance all further coercive steps for dispossession and sale of the property, subject to condition of the petitioner remitting the entire balance outstanding in the 'cash credit facility' in 8 (eight) equal monthly instalments, falling due on or before 31.3.2011 and on or before the last day of the succeeding months. 7. It is made clear that the directions given above is only in relation to the 'cash credit facility' and with respect to the 'housing loan', the terms of Ext.P4 Judgment will continue to operate. 8. It is further made clear that, on the event of default in payment of any one of the instalments the respondents will be at liberty to proceed with further steps and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE. okb