IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 25644 of 2009(A)
1. P.K.SATHI, PANANTHOTTAM,
... Petitioner
Vs
1. UNION BANK OF INDIA,
... Respondent
2. UNION BANK OF INDIA,
For Petitioner :SMT.S.MUMTAZ
For Respondent : No Appearance
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :18/09/2009
O R D E R
C.K.ABDUL REHIM,J.
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WP(C).NO. 25644 of 2009
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Dated this the 18th day of September, 2009
JUDGMENT
The petitioner is aggrieved by proceedings initiated by the
respondent Bank under the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security
Interest Act (SARFAESI Act) against the secured assets. The
petitioner availed housing loan to the tune of Rs.3 lakhs from the
1st respondent, in the year 2006. When repayments in the loan
account was defaulted the Bank initiated proceedings under the
SARFAESI Act, and the petitioner had approached this court on
an earlier occasion in WPC.No.36482/2008. On the basis of
undertaking made by the petitioner that the entire arrears
outstanding will be cleared within a period of one month, this
court directed to keep in abeyance further proceedings. But
inspite of lapse of considerable period thereafter, the petitioner
has not effected payment of any amount. On the request of the
Bank the Chief Judicial Magistrate has already appointed an
Advocate Commissioner to take over possession of the property.
WP(C).25644/2009 2
It is at this stage the present writ petition is filed.
2. Heard learned counsel appearing for the petitioner and
the Standing Counsel for the respondent Bank. It is submitted by
the learned Standing Counsel that the petitioner is a chronic
defaulter and inspite of various chances given by the Bank as well
as by this court, she has not paid any substantial amount.
Learned counsel for the petitioner submitted that the amount of
Rs.20,000/- was already paid after filing of this writ petition.
The petitioner further submitted that the secured assets is the
residential house belonging to the petitioner, and if it is taken
over possession and sold in public auction, that will cause
severe prejudice to her. It is submitted that the petitioner is
ready to pay off the entire liability within a reasonable time in
instalments.
3. Having considered the facts and circumstances, I am of
the preliminary opinion that the petitioner does not deserve any
indulgence. This court cannot interfere on the merits of the
contentions against the proceedings, in view of the effective
remedy by way of appeal provided under the SARFAESI Act. On
equity also this court is not justified in showing any indulgence
WP(C).25644/2009 3
since the petitioner failed in complying with earlier judgment.
4. But still, having considered the fact that the petitioner is a
lady and the secured asset is her residential building, I am
inclined to provide her one more chance to pay off the liability
and to save the asset from being sold.
5. Therefore the writ petition is disposed of directing the
petitioner to make payment of an amount of Rs.1,00,000/-
(Rupees One Lakh only) on or before 31.10.2009. On payment
of such amount the Bank shall furnish a balance statement to the
petitioner, after crediting all payments effected and after
permitting waiver of interest if any possible. The petitioner will
further make payment of the balance so intimated, in four equal
monthly instalments starting from 30.11.2009 and on or before
the last day of succeeding 3(three) months.
6. It is made clear that on default in payment of the initial
amount or any of the instalments, the Bank will be at liberty to
proceed further steps from the stage it is kept pending pursuant
to notices already issued and action taken under the SARFAESI
Act. It is also made clear that the benefit granted under this
judgment is subject to the condition that the petitioner is
WP(C).25644/2009 4
precluded from raising any subsequent challenges against the
recovery proceedings before this court or before any other forum.
C.K.ABDUL REHIM,JUDGE
pmn/