IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 28TH JUNE 2010 / 7TH ASHADHA 1932 WP(C).No. 13533 of 2010(N) -------------------------- PETITIONER(S): ------------------------- VISHNUDAS.K., AGED 54, S/O. LATE GOPALAN NAIR, KAMMANA HOUSE, MAYYANAD.P.O., CALICUT. BY ADVS. SRI.G.SREEKUMAR (CHELUR), SRI.K.RAVI (PARIYARATH). RESPONDENT(S): --------------------------- 1. THE STATE BANK OF INDIA, REP. BY ITS BRANCH MANAGER, CITY CREDIT CENTER, KALLAI HEIGHTS, CALICUT. 2. THE AUTHORIZED OFFICER, STATE BANK OF INDIA, KALLAI HEIGHTS,CALICUT. R1 & R2 BY ADV. SRI.R.S.KALKURA THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 28/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.13533/2010 N APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE PROVISIONAL REGISTRATION SIGNEDBY THE ASST. DISTRICT INDUSTRIES OFFICER, KOZHIKODE DTD. 14/06/04. P2: COPY OF THE NOTICE ISSUED BY THE SECOND RESPONDENT DTD. 29/03/2008. P3: COPY OF BANK STATEMENTS ISSUED TO THE PETITIONER DTD. 8/09/09. P4: COPY OF THE POSSESSION NOTICE ISSUED TO THE PETITIONER DTD. 9/02/2010. RESPONDENT'S ANNEXURES: R1(A): COPY OF THE STATEMENT OF ACCOUNTS IN RESPECT OF THE TERM LOAN ACCOUNT NO.10622664122. R1(B): COPY OF THE STATEMENT OF ACCOUNTS IN RESPECT OF THE TERM LOAN ACCOUNT NO.10622664133. R1(C): COPY OF THE STATEMENT OF ACCOUNTS IN RESPECT OF THE CC NO. 10622570991. R1(D): COPY OF THE NOTICES UNDER SECTION 13(2) DTD. 29/03/2008 ISSUED BY THE RESPONDENT TO M/S.SANGEETH ENTERPRISES. R1(E): COPY OF THE NOITCES UNDER SECTION 13(2) DTD. 29/03/2008 ISSUED BY THE RESPONDENT TO SMT. C.M.PUSHPAVALLI. R1(F): COPY OF THE POSTAL ACKNOWLEDGMENT INDICATING RECEIPT OF EXTS.R1(D) & R1(E). R1(G): COPY OF THE POSSESSION NOTICE DTD. 09/02/2010. /TRUE COPY/ P.A.TO JUDGE Kss P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No.13533 of 2010-N ---------------------------- Dated this the 28th day of June, 2010. J U D G M E N T The petitioner is challenging the steps taken by the respondent Bank resorting to the remedy under the SARFAESI Act, for realisation of the amount stated as due under some loan transactions. 2. The petitioner had availed three loans from the respondent Bank, creating security interest over the property in question. But the petitioner could not effect the payment promptly. In the said circumstances, there was no other alternative for the Bank, but to declare the accounts as 'NPA' and proceed with further steps invoking the provisions under the SARFAESI Act; which in turn is subjected to challenge in this Writ Petition. 3. When the matter came up for consideration before this Court on 23.4.2010, coercive steps were intercepted, on condition that the petitioner deposited a sum of Rs.3 lakhs within one month, which is stated as complied with. 4. The learned counsel for the Bank submits on instruction that after giving credit to the said amount, a balance liability will be W.P(C) No.13533 of 2010-N 2 more than Rs.11 lakhs under the three loans. 5. The learned counsel for the petitioner submits that the petitioner does not intend to challenge the correctness and sustainability of the steps taken by the respondent Bank invoking the machinery under the SARFAESI Act by filing any statutory appeal before the Debt Recovery Tribunal and that the relief pressed for is only to have some breathing time to clear the liability. 6. After hearing both the sides, this Court finds it fit and proper to permit the petitioner to discharge the liability in a phased manner. Accordingly, the petitioner is directed to clear the entire outstanding liability by way of 'four' 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, all further coercive proceedings pursuant to Ext.P4 shall be kept in abeyance. It is made clear that, if any default is committed by the petitioner in satisfying the due amount as above, it will be open to the Bank, to proceed with appropriate steps for realisation of the entire amount in a lump sum. The Writ Petition is disposed of. Sd/- P.R.RAMACHANDRA MENON ab JUDGE