IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 9TH SEPTEMBER 2009 / 18TH BHADRA 1931 WP(C).No. 24843 of 2009(A) -------------------------- PETITIONER(S): --------------- UNNIKRISHNAN.S., UNNI NIVAS,KOLLANKONAM,VILAPPIL P.O., THIRUVANANTHAPURAM.(REP.BY HIS POWER OF ATTORNEY HOLDER NIZARUDEEN,NEDIYAZHIKOM HOUSE, ERAVIPURAM,KOLLAM). BY ADV. SRI.M.BALAGOVINDAN SRI.VINOD J.DEV RESPONDENT(S): --------------- 1. STATE BANK OF INDIA, KOLLAM BRANCH,REP.BY ITS MANAGER, RASMECCC,2ND FLOOR,RAVIS ARCADE, NEAR IRON BRIDGE,KOLLAM. 2. AUTHORISED OFFICER, STATE BANK OF INDIA,KOLLAM BRANCH, RASMECCC,2ND FLOOR,RAVIS ARCADE, NEAR IRON BRIDGE,KOLLAM. ADV.SRI. P.V. SURENDRANATH, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.24843 OF 2009 ------------------------------ Dated this the 9th day of September, 2009 J U D G M E N T ---------------------- 1. The petitioner had availed a loan from the 1st respondent Bank to the tune of Rs.7 lakhs, repayment of which was defaulted and consequently the Bank had initiated proceedings for recovery of the amount by taking over possession of the secured assets under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI Act). Ext.P2 is the notice issued under Section 13(4) of the said At. Contention of the petitioner is that he is ready and willing to discharge entire debts due to the Bank in installments, provided sufficient time is granted. 2. Heard Standing Counsel for the respondents. It is submitted that the petitioner is a gross defaulter and the arrears accrued in the loan account as on 1.3.2009 is Rs.9,70,784/-. It is further submitted that the petitioner had unauthorisedly put the secured assets in possession of third parties and the Bank is now finding it difficult to take over possession, because of the illegal and malafide acts on the part of the petitioner. The standing counsel vehemently opposed granting any installment facility. 3. Having considered the rival contentions I am of the W.P.(C).24843/09 2 opinion that some indulgence can be shown in the matter to allow the petitioner to settle the liability before permitting the Bank to take over physical possession and conducting sale of the properties. Therefore the respondent Bank is directed to keep in abeyance all proceedings pursuant to Ext.P2 notice, if the petitioner makes payment of an amount of Rs.2,50,000/- on or before 15.10.2009. On payment of the said amount the 1st respondent Bank shall furnish a statement of account to the petitioner showing the entire balance as on that date after crediting all payments, and the petitioner shall pay the entire balance so intimated in 5 equal monthly installments starting from 15.11.2009 onwards and on the 15th day of every succeeding month. 4. It is made clear that on the event of default in payment of the initial amount or any subsequent installments the benefit granted under this Judgment will stand automatically recalled and the petitioner will be precluded from raising any further challenge against the proceedings under the SARFAESI Act. It is further made clear that the benefit granted as above is subject to the condition that the petitioner is precluded from raising any subsequent challenge against the proceedings under the SARFAESI Act, before this Court or before any other Forum. C.K.ABDUL REHIM, JUDGE. okb