IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 24TH MAY 2011 / 3RD JYAISHTA 1933 WP(C).No. 13743 of 2011(P) -------------------------- PETITIONER(S) :- ------------------------- P.P.ABDUL RAHMATH, S/O. AYTHU, PULATH PULIKKOTTIL HOUSE, MANIMOOLI P.O., VAZHIKKADAVU, MALAPPURAM DISTRICT. BY ADV. SRI.K.M.JAMALUDHEEN SMT.LATHA PRABHAKARAN RESPONDENT(S) :- ------------------------- 1. MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, UP HILL, MALAPPURAM, REPRESENTED BY ITS GENERAL MANAGER, PIN - 678 001. 2. THE GENERAL MANAGER (AUTHORIZED OFFICER) MALAPPURAM DISTRICT CO-OPEATIVE BANK LIMITED, HEAD OFFICE, UP HILL, MALAPPURAM - 678 001. STANDING COUNSEL MR.V.KRISHNA MENON THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/05/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: jvt C.K.ABDUL REHIM, J. ----------------------------- W.P.(C)No.13743 of 2011 ----------------------------------- Dated this the 24th day of May 2011 J U D G M E N T Consequent to default committed by the petitioner in repayment of amounts availed under an overdraft facility from the respondent bank, proceedings under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. Invoking Section 14(1), the respondents have approached the Chief Judicial Magistrate Court, Mancheri and in CMP No.438 of 2011 an Advocate Commissioner was appointed to take over possession of the property. Ext.P2 is the notice issued by the Advocate Commissioner. 2. According to the petitioner, the default occurred due to unexpected illness met with by the petitioner and continued treatment he had to undergo with respect to W.P.(C)No.13743 of 2011 -: 2 :- heart ailment. The petitioner had produced Ext.P1 medical certificate in support of the above contention. It is submitted that the coercive steps are now being pursued without acceding to his request to permit payment of the amounts due in a phased manner within a reasonable time. 3. Heard; standing counsel appearing for the respondents. It is submitted that the limit of the overdraft facility now stands exceeded by about Rs.19.07 lakhs and the proceedings under the SARFAESI Act was initiated after complying with all the mandatory requirements. 4. Considering the effective remedy provided under Section 17(1) of the Act, this Court may not be justified in interdicting with the proceedings, especially when the petitioner had failed to challenge the steps initiated under Section 13(4). Further, learned counsel appearing for the petitioner made an appeal to this Court to permit to pay off the entire balance amount in instalments within a reasonable time, on the basis of a specific undertaking that W.P.(C)No.13743 of 2011 -: 3 :- the petitioner is relinquishing all challenges and that he is not intending to pursue any statutory remedy. 5. Eventhough interference on merits is not warranted, indulgence can be shown in permitting payment of the amounts in a phased manner, within a reasonable time. 6. Accordingly, the writ petition is disposed of directing the respondents to keep in abeyance all further steps for disposal and sale of the property subject to condition of the petitioner remitting a sum of Rs.5 lakhs on or before 15.6.2011 and making payment of the balance amount along with interest and expenses if any due, in 6 (six) equal monthly instalments, falling due on or before 15.7.2011 and on or before 15th day of the succeeding months. 7. It is made clear that on the event of default in payment of any one of the instalments as stipulated above, the respondents will be free to proceed with further steps W.P.(C)No.13743 of 2011 -: 4 :- initiated pursuant to the orders issued by the Chief Judicial Magistrate Court, Mancheri, and on such event the petitioner will be precluded from raising any subsequent challenge. C.K.ABDUL REHIM, JUDGE. Jvt