IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 18TH AUGUST 2010 / 27TH SRAVANA 1932 WP(C).No. 24805 of 2010(A) -------------------------- PETITIONER: --------------- V.S.SUNIL KUMAR, AGED 44, S/O.V.K.SREEDHARAN, 25/48-A,VANCHINAD HOUSE, MARKET ROAD, TRIPUNITHURA. BY ADV. MR. JOHNSON MANAYANI MR. BENHUR JOSEPH MANAYANI RESPONDENTS: --------------- 1. FEDERAL BANK LTD., ALWAYE, KERALA, REPRESENTED BY ITS CHIEF MANAGER-683101. 2. BRANCH MANAGER, FEDERAL BANK LTD., PALLURUTHY, COCHIN-682005. ADV. MR. A.ANTONY MS. LEELAMMA ANTONY THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 24805 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 18th day of August, 2010 JUDGMENT The petitioner had availed a loan of Rs. 20 lakhs from the respondent Bank in the year, 2003, creating security interest over the property in question. But, the repayments could not be effected on time, under which circumstances, the Bank declared the account as 'NPA' and proceeded with further steps under the SARFAESI Act, which is under challenge in this Writ Petition. 2. The learned counsel for the petitioner submits that, pursuant to the coercive steps taken by the Bank, the physical possession of the property has already been taken over and the petitioner, who is running a cold storage unit, along with the workers happened to be virtually thrown out to the street. 3. The learned standing counsel appearing for the respondent Bank, on instruction, submits that, the outstanding liability as on 16.8.2010 is Rs.17,85,000/- and the Bank had extended an opportunity to the petitioner to clear the overdue amount, which however turned to be futile. 4. The learned counsel for the petitioner submits that, in spite of the adverse circumstances, earnest efforts are being taken by the petitioner to see that the liability is wiped off within a shortest possible time. Since the W.P. (C) No. 24805 of 2010 2 physical possession of the unit has already been taken over, the petitioner is stated as not in a position to generate the funds in lump; however, praying for the benefit of installments, to clear the liability. It is also stated that, the petitioner does not intend to avail the statutory remedy by approaching the DRT. 4. In the above facts and circumstances, this Court finds it fit and proper to permit the petitioner to clear the liability in a phased manner. Accordingly, the petitioner is directed to deposit a sum of Rs. 5 lakhs within one month, on which event the physical possession of the unit/property taken over by the respondent Bank shall be returned to the petitioner. The petitioner shall continue to effect the balance payment, by way of 'six' equal monthly installments; the first of which shall be effected on or before the 30th of October, 2010; to be followed by similar installments to be effected on or before the 30th of the succeeding months. Subject to this, the coercive proceedings stated as being pursued against the petitioner shall be kept in abeyance, for the time being. It is made clear that, if the petitioner commits any default in clearing the outstanding liability as above, the respondents will be at liberty to proceed with further steps for realization of the entire amount in lump sum and the petitioner shall surrender the vacant possession of the premises immediately on demand. The Writ Petition is disposed of. P. R. RAMACHANDRA MENON, JUDGE kmd