IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 15TH NOVEMBER 2010 / 24TH KARTHIKA 1932 WP(C).No. 33739 of 2010(N) --------------------------------- PETITIONER(S): ------------------- BINU .S, S/O.LATE DR.SADASIVAN, AGED 37 YEARS PROPRIETOR, VARIETY MOBILES, REMA MANGALAM, PANNIVIZHA, ADOOR PO. PATHANAMTHITTA DISTRICT. BY ADVS. SRI.BECHU KURIAN THOMAS SRI.ROSHEN D. ALEXANDER RESPONDENT(S): -------------------- 1. THE AUTHORIZED OFFICER,(CHIEF MANAGER) STATE BANK OF INDIA, REGIONAL BUSINESS OFFICE BEACH ROAD, ALAPPUZHA 688 001 2. STATE BANK OF INDIA, ADOOR BRANCH, CRYSTAL PLAZA, M.C.ROAD, ADOOR 691 523, PATHANAMTHITTA REPRESENTED BY ITS MANAGER. R1 & R2 BY ADVS. SRI.K.K.CHANDRAN PILLAI, SENIOR ADVOCATE SRI.SAJISH PAUL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs/ C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.33739 of 2010-N ---------------------------------------- Dated this the 15th day of November, 2010. J U D G M E N T Challenge in this writ petition is against proceedings initiated under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The petitioner had availed a cash credit facility to the tune of Rs.5,00,000/- from the respondent Bank, during the year 2008. Consequent to default committed in repayment, the account in question was classified as 'Non Performing Asset' (NPA) and steps against the immovable property, which is the secured asset, was pursued under the provisions of SARFAESI Act. Ext.P1 is the demand notice issued under Section 13(2) of the Act and Ext.P2 is the notice issued under Rule 8(1) of the Security Interest (Enforcement) Rules intimating steps taken as, contemplated under Section 13(4) of the Act. 2. Eventhough various challenges are raised against the proceedings initiated under the SARFAESI Act, it is W.P(C) No.33739 of 2010-N 2 conceded by the petitioner that he is not intending to pursue any statutory remedies and that he is relinquishing all such challenges, provided he is permitted to pay off the entire liability in a phased manner, within a reasonable time. 3. Heard; standing counsel appearing for the respondent Bank. It is submitted that the total amount outstanding is more than Rs.8,00,000/- and the period of the cash credit facility remains expired and the entire amount overdrawn is due for payment. 4. Considering the effective alternate remedy provided under the statute, I am not inclined to interfere with the proceedings on the basis of the challenge raised. However, considering the undertakings made on behalf of the petitioner regarding relinquishment of his rights, I am inclined to show indulgence in permitting the petitioner to pay off the liability within a reasonable time in instalments. 5. Accordingly, the writ petition is disposed of directing the respondents to keep in abeyance all further W.P(C) No.33739 of 2010-N 3 steps of recovery pursuant to Exts.P1 and P2 notices, provided the petitioner remits the entire balance outstanding along with interest if any accruing in future, in 8 (eight) equal monthly instalments falling due on or before 15.12.2010 and on or before 15th day of succeeding months. 6. It is made clear that on the event of default in payment of any one of the instalments, the respondents will be free to proceed with further steps. It is further made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM JUDGE ab