IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 25TH MAY 2011 / 4TH JYAISHTA 1933 WP(C).No. 8801 of 2011(A) ------------------------- PETITIONER: ------------------ K.BALACHANDRAN,AGED S/O.KUNJURAMAN VAIDYAR, KARTHIKA, THACHANKONAM, VARKALA, PIN-695141. BY ADV. SRI.E.M.MURUGAN RESPONDENT: --------------------- STATE BANK OF INDIA, REP. BY ITS CHIEF MANAGER (AUTHORIZED OFFICER), REGIONAL BUSINESS OFFICE, RAVIS ARCADE, NEAR IRON BRIDGE, KOLLAM-691013. BY STANDING COUNSEL SRI.R.S.KALKURA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25/05/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK C.K.ABDUL REHIM, J. ------------------------------- W.P.(C).No.8801 of 2011 ------------------------------- Dated this the 25th day of May, 2011. J U D G M E N T Credit facility availed by the petitioner from the respondent Bank was defaulted repayment. Consequently, proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated. The respondent had approached the Chief Judicial Magistrate Court, Thiruvananthapuram, invoking Section 14(1) and an Advocate Commissioner was appointed to take over possession of the property. The writ petition was filed at a stage when the Advocate Commissioner had issued Ext.P5 notice demanding the petitioner to hand over possession of the property. 2. Even though an interim order was issued by this Court on 21.3.2011, restraining dispossession subject to condition of the petitioner remitting a sum of Rs.1,50,000/-, the Advocate Commissioner had taken over possession of 2 W.P.(C).No.8801 of 2011 the property, before serving a copy of the interim order. Even though the petitioner had remitted the sum of Rs.1,50,000/- as insisted, repossession was not permitted. Subsequently, by virtue of a further interim order issued by this Court on 4.3.2011, the petitioner was directed to make payment of an additional sum of Rs.2 lakhs and on that basis the respondent was directed to permit reoccupation of the petitioner in the residential house. It is conceded by both sides that the stipulations had already been complied with and the petitioner was permitted to reoccupy the residential building. 3. Learned standing counsel appearing for the respondent submitted that, after crediting all the payments made, balance outstanding is around Rs.8 lakhs. Learned counsel appearing for the petitioner made an appeal to this Court to permit continued occupation in the residential house, on the basis of an offer that whatever balance outstanding will be paid in a phased manner, within a reasonable time. The above appeal is made subject to an 3 W.P.(C).No.8801 of 2011 undertaking that the petitioner is relinquishing all challenges raised against the proceedings and also relinquishing rights if any available to invoke statutory remedy. Learned counsel for the petitioner further points out that there is a deposit of Rs.2.20 lakhs made by the petitioner in civil and criminal cases pending with respect to the very same loan transaction. Learned counsel seeks direction from this Court to appropriate such deposits against the balance outstanding. Learned counsel appearing for the respondent Bank concede that if the entire balance is remitted by the petitioner, there may not be any objection for compromising or compounding the cases which are now pending and in adjusting the deposits if any pending. 4. Considering the facts and circumstances as stated above, I am of the view that, even though the proceedings initiated under the SARFAESI Act could not be interdicted with, based on merits of any of the contentions raised, the petitioner can be permitted to pay off the entire liability in 4 W.P.(C).No.8801 of 2011 instalments within a reasonable time, in view of relinquishment of the challenges raised. 5. Accordingly, the writ petition is disposed of directing the respondent to keep in abeyance all further steps under the SARFAESI Act, subject to condition of the petitioner remitting the entire amount due, along with interest and expenses if any, in 4 (four) equal monthly instalments falling due on or before 15.6.2011 and on or before the 15th day of the succeeding months. In order to facilitate the petitioner to make such payment, the respondent will issue a statement of the accounts showing the balance outstanding. 6. After remitting two monthly instalments as directed above, the petitioner will be at liberty to approach the respondent for compromising/compounding of the cases pending and seeking adjustment of the amounts in deposits, against the arrears. Appropriate steps will be taken by the respondent Bank in this regard. 7. It is made clear that on the event of default in 5 W.P.(C).No.8801 of 2011 payment of any one of the instalments as stipulated above or any future monthly instalments, the respondent will be free to proceed with further steps, on the basis of notices already issued, and on such event the petitioner will be precluded from raising any subsequent challenge. C.K.ABDUL REHIM, Judge ami/