IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 21ST MARCH 2011 / 30TH PHALGUNA 1932 WP(C).No. 2358 of 2011(T) ------------------------- PETITIONER(S): --------------- M/S.ASHOK MEDICALS, A REGD. PARTNERSHIP FIRM, 20/490, MAIN ROAD, VATAKARA, REP. BY ITS MANAGING PARTNER, SRI.JAYADASAN. BY ADV. SRI.N.M.MADHU SRI.M.K.SADANANDAN (VADAKARA) RESPONDENT(S): --------------- PUNJAB NATIONAL BANK, A BANK CONSTITUTED UNDER THE BANKING COMPANIES(ACQUISITION AND TRANSFER OF UNDERTAKING)ACT,1970,HAVING ITS HEAD OFFICE AT NEW DELHI AND A BRANCH OFFICE AMONG OTHER PLACES AT VATAKARA-673101,KOZHIKODE DISTRICT,KERALA STATE, THROUGH ITS AUTHORIZED OFFICER. ADV. SRI.K.P.SUDHEER FOR R1, SC SRI.SUMODH MADHAVAN NAIR FOR R1 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: SU W.P.C.NO.2358/2011 APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE NOTICE DATED 16/4/2010 ISSUED BY THE RESPONDENT U/S 13(2). P2: COPY OF THE OBJECTION DATED 16/6/2010. P3: COPY OF THE LETTER DATED 24/6/2010. P4: COPY OF THE PETITION FILED BY THE RESPONDENT U/S.14 OF THE SARFAESI ACT. P5: COPY OF THE NOTICE DATED 11/1/2011 ISSUED BY THE ADV.COMMISSIONER. P6: COPY OF THE LETTER DATED 15/1/2011. P7: COPY OF THE STATEMENT DATED 17/1/2011 SUBMITTED BY THE PETITIONER BEFORE THE ADV.COMMISSIONER. RESPONDENT'S EXHIBITS: NIL. /TRUE COPY/ P.A. TO JUDGE SU C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.2358 of 2011-I ---------------------------------------- Dated this the 21st day of March, 2011. J U D G M E N T Consequent to default committed by the petitioner in repaying a loan availed from the respondent Bank, proceedings was initiated against the immovable property, which is the secured asset, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). When the Bank approached the Chief Judicial Magistrate Court invoking Section 14(1), an Advocate Commissioner was appointed to take over possession of the property. Ext.P5 is the notice issued by the Advocate Commissioner. 2. According to the petitioner the repayment became defaulted only due to unforeseen set back faced by the petitioner in the business activities. It is submitted that the coercive steps are now being pursued without considering request made by the petitioner to permit payment of the amount due in a phased manner, within a reasonable time. 3. In the counter affidavit filed on behalf of the W.P(C) No.2358 of 2011-I 2 respondent, it is stated that the petitioner had availed cash credit facility to the tune of Rs.30 lakhs and consequent to default committed the loan account was classified as 'NPA', as on 31.3.2010. However, it is admitted that, the petitioner had remitted a sum of Rs.5 lakhs on 18.1.2011. 4. Eventhough this Court was not inclined to entertain this writ petition in view of the statutory remedy available, as a gesture of indulgence dispossession of the petitioner from the property was stayed, subject to condition of the petitioner remitting a sum of Rs.5,00,000/-. Subsequently the interim order was extended subject to condition of further payment of Rs.3,50,000/-. It is reported that the amount of Rs.8,50,000/- stipulated through the interim orders have already been paid. 5. Learned counsel for the petitioner seeks a limited relief for permitting payment of the entire balance due in a phased manner, within a reasonable time, on the basis of an undertaking made to the effect that the petitioner is relinquishing all challenges against the impugned proceedings and also relinquishing rights if any available to invoke statutory remedy. Eventhough interference on merits is not justified, I am W.P(C) No.2358 of 2011-I 3 of the view that indulgence can be shown in permitting the petitioner to wipe off the liability in instalments within a reasonable time, in view of the relinquishments made. 6. Accordingly, the writ petition is disposed of directing the respondent Bank to keep in abeyance all further coercive steps for dispossession and sale of the properties, subject to condition of the petitioner remitting the entire balance along with interest and expenses if any due in 8 (eight) equal monthly instalments, falling due on or before 30.4.2011 and on or before the last day of succeeding months. 7. It is made clear that on the event of default in payment of any one of the instalments, the respondent will be free to proceed with further steps. It is further made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab