IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 10TH OCTOBER 2011 / 18TH ASWINA 1933 WP(C).No. 26243 of 2011(E) -------------------------- PETITIONERS: --------------- 1. M/S.SANA TRADERS, 28/203 A, DAIRY METHANAM ROAD, EDAPALLY NORTH, 682024. 2. SRI.MATHEW JACOB, AGED 37, S/O.VARGHESE CHACKO, MADAYILPARAMBIL, YMCA LANE, ALAPPUZHA. BY ADV. SMT.S.SUJINI RESPONDENTS: --------------- 1. STATE BANK OF TRAVANCORE,REPRESENTED BY ITS BRANCH MANAGER, M.G.ROAD, JOY'S BUILDING, P.B.NO.3624, ERNAKULAM-682035. 2. STATE BANK OF TRAVANCORE, REPRESENTED BY ITS CHIEF MANAGER AND AUTHORIZED OFFICER, ZONAL OFFICE, PANAMPALLY NAGAR, ERNAKULAM, PIN 682016. R1 AND R2 BY ADV. SRI.SATHISH NINAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10/10/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 26243 of 2011(E) APPENDIX PETITIONERS' EXHIBITS : EXT.P1.: TRUE COPY OF THE NOTICE ISSUED DATED 1.3.2011. EXT.P2.: TRUE COPY OF THE STATEMENT OF ACCOUNT FROM 20.1.2011 TO 18.8.2011. EXT.P3.: TRUE COPY OF THE POSSESSION NOTICE ISSUED DATED 25.8.2011. EXT.P4.: TRUE COPY OF THE REQUEST LETTER SEEKING INSTALMENT. RESPONDENTS' EXHIBITS : NIL RKC //True copy// PA to Judge S. SIRI JAGAN, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No.26243 of 2011 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 10th day of October, 2011 J U D G M E N T The petitioners are challenging proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) initiated by the respondents for recovery of loan amounts due from the petitioners. The petitioners seek facility to regularise the loan account by paying the defaulted instalments of repayment of loan. 2. This is stoutly opposed by the counsel for the respondents. He points out that, the loan was taken in 2010 and it became N.P.A. in 2010 itself. According to the counsel for the respondents, the petitioners have stopped the business for which purpose the loan was taken and the loan amount was diverted for other purposes. He further points out that, the petitioners have sold other properties belonging to them and no money has yet been paid to the Bank. The counsel for the petitioners submits that, the sale W.P.(C)No.26243 of 2011 -2- of other properties have not yet been completed and amounts have not yet been received. When it was pointed out to the counsel for the petitioners that, in the circumstances the petitioners cannot be given the facility to regularise the loan account, the counsel for the petitioners submits that the petitioners may be given one month's time to pay off the entire amount. Accordingly the writ petition is disposed of with a direction to the respondents to give the petitioners one month's time to pay off the amounts. Accordingly, further proceedings under the Act shall be kept in abeyance for a period of one month. If the petitioners do not pay off the entire amount within the said time, it would be open to the respondents to continue proceedings as now initiated without having to issue any further notice or proceedings in that regard. Sd/- S. SIRI JAGAN JUDGE //True copy// P.A. TO JUDGE shg/