IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 26322 of 2009(I)
1. SATHEESH K.R,
... Petitioner
Vs
1. HDFC BANK LTD,
... Respondent
2. HDFC BANK LTD,
For Petitioner :SRI.BECHU KURIAN THOMAS
For Respondent :SRI.T.RAJESH
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :06/11/2009
O R D E R
C.K. ABDUL REHIM, J.
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W.P.(C)No. 26322 of 2009
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Dated this the 6th day of November, 2009
J U D G M E N T
1. Challenge in this writ petition is against
proceedings initiated by the respondents under the
provisions of the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002 (SARFAESI Act). The petitioner had availed a loan
from the respondent Bank to the tune of Rs.55 lakhs during
the year 2007. According to the petitioner due to failure in
business activities, regular repayments in the loan account
could not be continued. Consequently the respondents
initiated proceedings under the SARFAESI Act and Exts.P1
& P2 notices were issued. Challenging those proceedings
the petitioner had approached the Debts Recovery Tribunal
and an interim stay was granted on condition of deposit of
Rs.3 lakhs on or before 10.08.2009. Since the petitioner
could not remit the amount, an extension application was
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filed, and extension was granted. Still the petitioner could
not effect payment of the said amount within the time
stipulated by the Tribunal. Eventhough he had tendered the
amount after the time stipulated, the Bank had refused to
accept it. Thereafter the respondent proceeded with
further steps and approached the Chief Judicial Magistrate
invoking Section 14 (1). An Advocate Commissioner was
appointed to take over possession of the secured assets. At
this stage the petitioner had filed this writ petition seeking
direction for permitting him to pay off the defaulted
installments in order to regularise the account.
2. This court through interim orders dated 18.09.09
and 25.09.09 directed the petitioner to make payment of
Rs.3 lakhs and Rs.5 lakhs respectively. It is submitted by
both sides that the interim orders had already been
complied with and a total amount of Rs.8 lakhs was paid.
The learned counsel for the respondents submitted that the
amount pertaining to the defaulted installments along with
over due interest and expenses at present outstanding, will
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be around Rs.4 lakhs. Learned counsel for the petitioner
submits that he is ready and willing to pay whatever amount
due for regularising the loan account within a short period.
3. Under the above circumstances, I am of the
opinion that some indulgence can be shown in the matter
for permitting the petitioner to regularise the account by
paying defaulted amounts and in permitting the petitioner
to continue repayment in the loan account as per the
original schedule.
4. Accordingly the writ petition is disposed of
directing the petitioner to make payment of the amount
pertaining to the defaulted installments along with over due
interest and expenses if any liable, in four (4) equal monthly
installments falling due on or before 15th December, 2009
and on or before the 15th day of succeeding three (3)
months. The petitioner shall make payment of the regular
installments due from December 2009 onwards along with
the above payments. If the petitioner makes payment of the
amounts as insisted above, the respondent shall permit him
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to continue repayment in the loan account with respect to
the future installments as per the original schedule of
repayment.
5. It is made clear that on the event of failure to pay
any of the installments as stipulated as above, the
respondents will be free to proceed with further steps
pursuant to the order already issued by the Chief Judicial
Magistrate Court, and on any such event the petitioner will
be precluded from raising any further challenge against the
proceeding initiated under the SARFAESI Act, before this
court or before any other forum.
C.K. ABDUL REHIM
JUDGE
shg/