IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 16TH JUNE 2011 / 26TH JYAISHTA 1933 WP(C).No. 16138 of 2011(N) ----------------------------------------- PETITIONER(S): ------------------------- N.BIJU, PROPROETOR, M/S. KATTOSERIL RUBBER AND MOBILES, KULAKKADA JUNCTION, KULAKODE.P.O., KOTTARAKARA, KOLLAM DIST. BY ADV. SRI.MANSOOR.B.H. RESPONDENT(S): --------------------------- 1. AUTHORISED OFFICER, UNION BANK OF INDIA, REGIONAL OFFICE, M.G.ROAD, STATUE, TRIVANDRUM. PIN-695 001. 2. MANAGER, UNION BANK OF INDIA, KOTTARAKKARA BRANCH, KOTTARAKKARA, KOLLAM DIST. PIN-691 001. R1 & R2 BY ADV. SRI. A.S.P. KURUP, SC, UBI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/06/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.16138/2011 N APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE NOTICE DTD. 10/01/2011 ISSUED BY THE FIRST RESPONDENT. P2: COPY OF THE NOTICE DTD. 17/05/2011 ISSUED BY THE ADVOCATE COMMISSIONER. RESPONDENT'S EXHIBITS: N I L /TRUE COPY/ P.A.TO JUDGE Kss C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.16138 of 2011-N ---------------------------------------- Dated this the 16th day of June, 2011. J U D G M E N T Consequent to default committed in repayment of a cash credit facility availed by the petitioner from the respondent Bank, proceedings under the Securitisation 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, and an Advocate Commissioner was appointed to take over possession of the immovable property, which is the secured asset. Ext.P2 is the notice issued by the Advocate Commissioner requiring the petitioner to handover possession of the property. 2. According to the petitioner the coercive steps were pursued without acceding to his request for permitting payment of the amounts due in a phased manner, within a reasonable time. It is contended that if the property in question is sold under the proceedings, it will cause severe prejudice and irreparable loss to the petitioner. 3. Heard; standing counsel appearing for the respondent W.P(C) No.16138 of 2011-N 2 Bank. It is submitted that the cash credit facility in question was availed in the year 2008 and it was not renewed thereafter due to default committed. It is further stated that the account in question was declared as 'NPA' in the year 2010 and there is a total outstanding liability of more than Rs.11.72 lakhs. 4. Considering the effective alternative remedy provided under Section 17(1), it may not be justified on the part of this court to interdict with the proceedings. However, learned counsel for the petitioner made an undertaking to the effect that the petitioner is relinquishing all challenges raised against the proceedings and that he is also relinquishing rights if any available to invoke statutory remedy. On the other hand a limited relief was sought for to permit payment of the entire amounts due in instalments, within a reasonable time. 5. Eventhough interference on merits is not warranted, I am of the view that the petitioner can be permitted to wipe off the entire liability by payment of the amounts due in instalments within a reasonable time. 6. Accordingly, the writ petition is disposed of directing the respondent Bank to keep in abeyance all further coercive steps for dispossession and sale of the property, subject to W.P(C) No.16138 of 2011-N 3 condition of the petitioner remitting the entire amounts along with interest and expenses if any due, in 4 (four) equal monthly instalments, falling due on or before 30.6.2011 and on or before the last day of 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 respondent will be free to proceed with further steps. It is further made clear that the above relief is granted subject to condition that the petitioner is precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE ab W.P(C) No.16138 of 2011-N 4