IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 30TH JUNE 2010 / 9TH ASHADHA 1932 WP(C).No. 20381 of 2010(W) --------------------------------------- PETITIONER(S): ----------------------- PETER.P.C. S/O. CHACKO, AGED 47 YEARS, PANAMTHANAM HOUSE, PATTIKADU, MARAYOOR.P.O., IDUKKI DISTRICT. BY ADV. SRI.R.DIVAKARAN SRI.BINOI GEORGE CHERUKARA RI.VINUCHAND RESPONDENT(S): ------------------------- 1. STATE BANK OF TRAVANCORE, REPRESENTED BY THE CHIEF MANAGER(ADVANCES) SBT, REGION V- ZONAL OFFICE, ERNAKULAM, SBT BHAVAN, PANAMPILLY NAGAR, KOCHI-682036. 2. THE BRANCH MANAGER STATE BANK OF TRAVANCORE, MARAYOOR.P.O, IDUKKI DISTRICT, PIN-685020. R1& R2 BY ADV. SRI.SATHISH NINAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No. 20381 of 2010-W ---------------------------- Dated this the 30th day of June, 2010. J U D G M E N T The petitioner availed a business loan of Rs.2 lakhs from the second respondent for starting a chappal unit, creating security interest over the property in question. But the timely instalments could not be effected, whereby the petitioner became a defaulter, leading to coercive steps taken by the respondents, invoking the provisions under the SARFAESI Act, which is under challenge in this Writ Petition. 2. The learned standing counsel for the Bank submits on instructions that, the steps taken by the Bank are perfectly in tune with the relevant provisions of the law. It is also stated that the entire outstanding liability will come to Rs.2,23,433/- with further interest and cost. The learned counsel further submits that the petitioner happened to be a defaulter only because of some unforeseen circumstances and that the bonafides of the petitioner are very much revealed from Ext.P6 representation submitted before the Bank, stating that he is ready and willing to clear the entire W.P(C) No. 20381 of 2010-W 2 liability, and praying for some breathing time to clear the same. It is also stated that the petitioner does not intend to challenge the steps taken by the respondents by filing statutory appeal as provided under Section 17 of the SARFAESI Act, by approaching the Debt Recovery Tribunal. 3. Considering the particular facts and circumstances, the petitioner is permitted to clear the entire outstanding liability by way of 'six' equal monthly instalments; the first of which shall be effected on or before the 30th of July 2010, to be followed similar instalments to be effected on or before the 30th of the succeeding months. Recovery proceedings shall be kept in abeyance for the time being. It is made clear that, if any default is committed by the petitioner in clearing the outstanding amount as above, the respondents will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE ab