IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 17TH JANUARY 2011 / 27TH POUSHA 1932 WP(C).No. 10665 of 2009(C) ---------------------------------------- PETITIONER(S): ------------------------ SRI.P.I. NALINAKSHAN, `CHITHRA', KOTTAMPARAMBU, CALICUT-673 008. BY ADV. SRI.K.A.SALIL NARAYANAN RESPONDENT(S): -------------------------- 1. THE CHIEF MANAGER & AUTHORISED OFFICER, (UNDER SRFAESI ACT) DHANALAKSHMI BANK LTD., ZONAL OFFICE, TRICHUR. 2. THE DHANALAKSHMI BANK, BRANCH OFFICE, KOZHIKODE, REPRESENTED BY ITS MANAGER. *ADDL. R3 & R4 IMPLEADED ADDL. R3: CORPORATION OF KOZHIKODE, CORPORATION BUILDINGS, KOZHIKODE, REPRESENTED BY ITS SECRETARY. ADDL. R4: SMT.M.K. PREMAKUMARI, CHITHRA, KOTTAMPARAMBA, KOZHIKODE-673 008. * ADDL. R3 & R4 ARE IMPLEADED VIDE ORDER DATED 07/04/2009 IN I.A.NO.4991/2009. R1 & R2 BY ADV. SRI.C.K.KARUNAKARAN. ADDL. R3 BY AD. SRI.K.D.BABU. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/01/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 10665 of 2009 --------------------------------- Dated this the 17th day of January, 2011 JUDGMENT Petitioner is a Civil Contractor regularly undertaking works under the 3rd respondent, is approaching this court aggrieved by steps initiated by the 2nd respondent under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), for realising amounts due in a loan account which was availed by the petitioner. The 4th respondent, who is the wife of the petitioner is the guarantor. Ext.P1 is the notice issued by respondents 1 and 2 raising demand under section 13(2). Eventhough the petitioner submitted Ext.P3 representation seeking time for payment of the balance amount, coercive steps were threatened without considering such request, is the submission. According to the petitioner, considerable amount is due from the 3rd respondent Corporation and he had offered payment of such amounts to the loan account as and when received from the 3rd respondent.. WP(C) .10665/2009 2 2. By virtue of an interim order issued on 7.4.2009, this court directed the 3rd respondent to finalise the amount if any payable to the petitioner with respect to the works completed and to effect payment. Recovery steps initiated by respondents 1 and 2 was stayed subject to the condition of the petitioner remitting a sum of Rs.5,00,000/- Subsequently the interim stay was extended periodically and a condition for further payment of Rs.2,00,000/- was imposed on 2.11.2010. It is reported that in compliance with the directions, the petitioner had remitted a total sum of Rs.7,00,000/-. 3. Learned counsel appearing for the 3rd respondent Corporation submitted that, after verification of the entire account it was found that no further amount is due for payment to the petitioner. It is further stated that the above fact was made convinced to the petitioner when he had personally appeared before the concerned officials of the Corporation. 4. Considering the fact that steps initiated under the SARFAESI Act is only at the stage of issuing notice under section 13(2), it is not for proper for this court to interdict with the proceedings, in view of the effective alternative remedy available under section 17(1). However, learned counsel for WP(C) .10665/2009 3 the petitioner made a submission that the petitioner is not intending to pursue any such statutory remedies and that he is relinquishing all challenges against the proceedings. On the alternative limited prayer is to permit payment of the entire balance in a phased manner, within a reasonable time. Eventhough interference on merits is not desirable, considering the offer made bey the petitioner and also considering the fact that he is relinquishing all challenges, I am inclined to permit the petitioner to pay off the entire liability in instalments, within a reasonable time. 5. Accordingly, the writ petition is disposed of directing respondents 1 and 2 to keep in abeyance all further steps of recovery initiated on the basis of Ext.P2 notice, provided the petitioner remits the entire balance outstanding along with interest if any due, in 7 (seven) equal monthly instalments, falling due on or before 15.2.2011 and on or before the 15th day of the succeeding months. 6. Respondents 1 and 2 are directed to issue copy of statement of account in the loan transaction to the petitioner on usual terms, before the dates stipulated for payment of the 1st instalment, in order to facilitate the petitioner to make payment WP(C) .10665/2009 4 of the amount as stipulated above. 7. It is made clear that on the event of default committed in payment of any one of the instalments as stipulated above, respondents 1 and 2 will be free to proceed with further steps pursuant to the notices already issued and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM,JUDGE pmn/ WP(C) .10665/2009 5