IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 24TH NOVEMBER 2010 / 3RD AGRAHAYANA 1932 WP(C).No. 34438 of 2010(D) -------------------------- PETITIONER: ------------------ M.SHABEER, PROPRIETOR, MANGUIAM HOUSE, PRIYADARSINI LANE, MUTTADA, THIRUVANANTHAPURAM. BY ADVS. SRI.ANIL SIVARAMAN RESPONDENT: --------------------- UNION BANK, THIRUVANANTHAPURAM MAIN BRANCH, UNION BANK BHAVAN, M.G.ROAD, STATUE, THIRUVANANTHAPURAM. 695001 REP. BY ITS MANAGER/AUTHORISED OFFICER. BY ADV. SRI.A.S.P.KURUP, SC, UBI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.34438 of 2010-D ---------------------------------------- Dated this the 24th day of November, 2010. J U D G M E N T The petitioner is approaching this Court aggrieved by the proceedings initiated under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and by the steps now initiated by the respondent Bank before the Chief Judicial Magistrate Court, Thiruvananthapuram invoking Section 14(1) of the said Act. 2. The petitioner had availed four distinct business loans from the respondent Bank for starting a Hospital and a Hotel, and for purchase of vehicles. Consequent to default committed in repayment of amounts due under the different loan accounts, the respondent Bank initiated proceedings under the SARFAESI Act against the immovable properties which are the secured assets of the loan transactions. After resorting to steps contemplated under Section 13(2) and 13 (4), the Bank had now approached the Chief Judicial W.P(C) No.34438 of 2010-D 2 Magistrate Court to recover possession of the property. According to the petitioner the request made before the respondent Bank to permit payment of the arrears in a phased manner within a reasonable time has not been acceded to. Hence this writ petition is filed seeking direction to restrain the coercive steps. 3. Considering the effective remedy provided under the relevant statute, I am not at all inclined to entertain this writ petition. However, learned counsel for the petitioner submitted that the petitioner is relinquishing all challenges against the proceedings and that he is not intending to pursue any of the statutory remedies. On the other hand limited prayer is only to permit payment of the entire amount due within a reasonable time in instalments. 4. In a statement filed on behalf of the respondents, the split up details of amounts outstanding under the different loans is illustrated. It is evident that the total liability will come around Rs.59,00,000/-. It is submitted by learned counsel appearing for the respondent Bank that, all W.P(C) No.34438 of 2010-D 3 the loans are in chronic default and the petitioner is not conducting any business activity and the establishments were not even started functioning. 5. Considering the fact that the petitioner is relinquishing all challenges against the proceedings initiated under the SARFAESI Act, I am of the view that an equitable relief of permitting payment of the amounts within a reasonable time in instalments can be allowed. 6. Accordingly, the writ petition is disposed of directing the respondent to keep in abeyance coercive steps for dispossession and sale of the property, subject to condition of the petitioner remitting a sum of Rs.15,00,000/- on or before 31.12.2010 and the balance amount in 5 (five) equal monthly instalments falling due on or before the last day of the succeeding months. 7. It is made clear that on the event of default in payment of any one of the instalments, the respondent will be free to proceed with further steps pursuant to the proceedings initiated under Section 14(1). It is further W.P(C) No.34438 of 2010-D 4 made clear that the above relief is granted subject to the condition that the petitioner is precluded from raising any subsequent challenge against the proceedings. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// P.A to Judge ab