IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 1ST JULY 2009 / 10TH ASHADHA 1931 WP(C).No. 16064 of 2009(C) ------------------------------------ PETITIONER(S): ------------------------ 1. MAXIM K.BABY, (PROP.M/S. P&J MARKETING) KNRA/14, UTHRAM, GOLFFINKS ROAD, PIPINMOODU, THIRUVANANTHAPURAM DISTRICT. 2. DR.V.JAYAKUMAR, RENJANA, KRRA 207, TRUE COPY/19/888, KESAVADEV ROAD, MUDAVANMUGAL, POOJAPPURA , THIRUVANANTHAPURAM 12. BY ADVS. MR.C.R.SIVAKUMAR MR.BAIJU KRISHNAN RESPONDENT(S): ------------------------- 1. THE GENERAL MANAGER, THE STATE BANK OF INDIA, POOJAPPURA, THIRUVANANTHAPURAM. 2. THE BRANCH MANAGER THE STATE BANK OF INDIA, PALAYAM BRANCH, THIRUVANANTHAPURAM DISTRICT. 3. THE AUTHORISED OFFICER, THE STATE BANK OF INDIA, SMECCC, LHO ANNEXE, LMS COMPOUND THIRUVANANTHAPURAM DISTRICT. BY ADV. MR.K.K.CHANDRAN PILLAI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J. ----------------------------------------------- WP(C) NO. 16064 OF 2009 ----------------------------------- Dated this the 1st day of July, 2009 JUDGMENT The petitioners have rushed to this Court challenging the steps taken by the respondent Bank to take physical possession of the secured assets and to be sold in public auction, because of the default committed by the petitioners in clearing the liability under the loan which was availed of by the first petitioner in the year 2004; under the guarantee of the second petitioner. The learned counsel appearing for the respondent Bank, on instructions submits that, no payment was effected by the petitioners ever since April, 2007, but for a sum of Rs.3,00,000/- effected on 21.03.2009, pursuant to issuance of notice under Section 13 (2) of the SARFAESI Act. Learned Counsel further submits that, as on date, more than a sum of Rs.15,00,000/- is due, besides interest and cost. 2. Learned Counsel for the petitioner submits that the default was never wilful or deliberate and it was only unforeseen circumstances, particularly in view of the sudden down fall in the market conditions which very much adversely affected the business. At no point of time had the petitioners thought of evading the payment in any manner and that earnest WPC NO.16064/2009 2 efforts are being made to raise funds and to clear the entire liability, for which the petitioners seek to have a time of about five months. 3. Learned Counsel for the respondent Bank submits that, the petitioners have to prove their bonafides by effecting a substaintial payment towards the dues. After considering the facts and circumstances, petitioners are directed to pay a sum of Rs.3,00,000/- within one month and the entire balance amount shall be cleared within a further period of four months thereafter. Subject to the above, the coercive proceedings stated as being pursued against the petitioner shall be kept in abeyance. It is made clear that, if the petitioners commit any default in effecting the payments as aforesaid, the respondent Bank will be at liberty to proceed against the secured assets from the stage where it stands now, for realisation of the entire amount in a lump sum. This will not prevent the petitioners to pursue Ext.P6 representation filed before the Bank for any concession, if it is found to be fit and proper at the hands of the Bank. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc