IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 27TH MAY 2010 / 6TH JYAISHTA 1932 WP(C).No. 16320 of 2010(L) -------------------------- PETITIONER(S): --------------- JOY P.JAIMON, S/O.JOY, SOLE PROPRIETOR "M/S.PRASANTH MEDICALS", PARAKADAVIL HOUSE, MANAPURAKKAL ROAD, CHALIKKAVATTOM, VYTTILA, ERNAKULAM, KOCHI-26. BY ADV. SRI.G.SREEKUMAR (CHELUR) SRI.K.RAVI (PARIYARATH) RESPONDENT(S): --------------- 1. THE STATE BANK OF TRAVANCORE, PALARIVATTOM BRANCH, REP. BY ITS BRANCH MANAGER, PREETHI BUILDINGS, PALARIVATTOM P.O., ERNAKULAM. 2. THE AUTHORISED OFFICER, STATE BANK OF TRAVANCORE, PALARIVATTOM BRANCH, ERNAKULAM. STANDING COUNSEL SRI.SATISH NINAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27/05/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J -------------------------------------------- WP(C) NO. 16320 OF 2010 -------------------------------------------- Dated this the 27th day of May, 2010 JUDGMENT The petitioner had availed a cash credit facility from the respondent Bank creating security interest over the property in question. But the petitioner could not satisfy the liability as scheduled by effecting the instalments on time, which made him a defaulter and the Bank proceeded with steps under the SARFAESI Act. The petitioner is challenging the correctness and sustainability of the steps taken by the Bank in this Writ Petition. 2. The learned counsel appearing for the Bank submits on instructions that the total outstanding liability under the loan transaction as on 31.12.2009 is nearly Rs.10,21,076/- and that the action pursued by the Bank is strictly in conformity with the statutory prescription and hence is not assailable under any circumstance. 3. The learned counsel for the petitioner submits that the petitioner does not intend to press the challenge against the sustainability of the proceedings and that the only relief prayed for is to enable the petitioner to clear the liability in a phased manner; assuring that a sum of Rs.3,00,000/- will be deposited within three weeks and the balance might be permitted to be cleared by way of some monthly instalments thereafter. 2 WP(C) No. 16320/2010 4. Considering the facts and circumstances, the petitioner is directed to deposit a sum of Rs.3,00,000/- within three weeks as assured and undertaken and the balance liability shall be cleared by way of ‘three’ equal monthly instalments, the first of which shall be effected on or before the 15th of July, 2010, to be followed by similar instalments to be effected on or before the 15th of the succeeding months. Subject to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance. It is made clear that, if any default is committed by the petitioner in satisfying the liability as above, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum, by pursuing such exercise from the stage where it stands now. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc