IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 9514 of 2010(L)
1. FRANCIS,AGED 55 YEARS,S/O.ATHANAS,
... Petitioner
Vs
1. THE AUTHORIZED OFFICER,
... Respondent
2. THE MANAGER, THIRUVANANTHAPURAM DIST.
For Petitioner :SRI.J.JAYAKUMAR
For Respondent : No Appearance
The Hon'ble MR. Justice P.R.RAMACHANDRA MENON
Dated :22/03/2010
O R D E R
P.R. RAMACHANDRA MENON, J.
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WP(C) No. 9514 of 2010
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Dated, this the 22nd day of March, 2010
J U D G M E N T
The petitioner had availed a loan of Rs.1,50,000/- from the 2nd
respondent Bank in March 2005 creating security interest over 10 cents
of property belonging to the petitioner. However, the petitioner could not
effect the repayment on time; under which circumstance, the Bank
declared the account as NPA and proceeded with further steps under
the SARFAESI Act, which is under challenge in this Writ Petition.
2. The learned counsel for the petitioner submits that, in the
course of the steps taken by the respondent bank, the possession of the
property was taken over as per Ext.P1 mahazar and Ext.P2 notice.
Subsequently, the petitioner turned up before the first respondent,
expressing willingness to clear the liability within a reasonable time,
which was readily agreed by the Bank as well and pursuant to the
instructions to remit a sum of Rs.50,000/-, the petitioner satisfied the
same as borne by Ext.P3 receipt. After remitting the said amount, the
respondent took a ‘U’ turn, stating that the petitioner had to clear the
entire balance within 10 days; which made the petitioner to approach
this Court by filing this Writ Petition.
WP(C) No.9514/2010
2
3. Heard the learned counsel appearing for the respondent
Bank as well, who submits on instructions, that the prayer raised by the
petitioner to permit him to clear the liability by way of 10 equal monthly
instalments is much on the higher side and that the petitioner could be
given some time, by way of reasonable monthly instalments.
4. After hearing both the sides, this Court finds it fit and proper
to permit the petitioner to clear the liability in a phased manner.
Accordingly, the petitioner is directed to satisfy the entire outstanding
liability by way of ‘five’ equal monthly instalments; the first of which shall
be effected on or before the 10th April 2010, to be followed by similar
instalments to be effected on or before the 10th of the succeeding months.
Subject to this, all further recovery proceedings stated as being pursued
against the petitioner shall be kept in abeyance. It is also made clear that
if any default is committed by the petitioner in satisfying the liability as
above, the respondent Bank will be at liberty to proceed with further steps
for realisation of the entire amount in a lump sum.
The Writ Petition is disposed of accordingly.
P. R. RAMACHANDRA MENON
JUDGE
dnc