IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 30571 of 2009(N)
1. P.G.BABU, S/O.GOPALAN, AGED 45 YEARS,
... Petitioner
2. LATHA K.M., W/O.BABU,
Vs
1. DHANALAKSHMI BANK, CHERTHALA BRANCH,
... Respondent
2. DHANALAKSHMI BANK, ZONAL OFFICE,
For Petitioner :SRI.DENY JOSEPH
For Respondent : No Appearance
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :30/11/2009
O R D E R
C.K. ABDUL REHIM, J.
- - - - - - - - - - - - - - - - - - - - - - -
W.P.(C)No. 30571 of 2009
- - - - - - - - - - - - - - - - - - - - - - -
Dated this the 30th day of November, 2009
J U D G M E N T
1. Challenge in this writ petition is against the
proceedings initiated by the respondent Bank under the
provisions of the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002 (SARFAESI Act). Since the proceedings is only at the
stage of notice under Section 13 (2), it is not proper for this
court to interfere with the matter, at this stage.
2. However, when the writ petition came up for
consideration this court directed the petitioners to make
payment of an amount of Rs.7,50,000/- (Rupees Seven lakh
fifty thousand only), through interim order dated
28.10.2009. It is reported that the condition has already
been complied with and the said amount was remitted on
17.11.09.
W.P.(C)No. 30571 of 2009
-2-
3. Learned counsel for the petitioners seeks a limited
prayer for directing the respondent Bank to permit payment
of the entire balance outstanding in installments, within a
reasonable time.
4. Learned standing counsel appearing for respondents
on the basis of instructions submitted that, altogether there
are three loan accounts in default. The balance outstanding
in those accounts are Rs.14,48,475.06/-, 12,46,168.01/-,
2,855.25/- respectively. It is also admitted that even before
approaching this court the petitioners had effected payments
in the loan accounts. But since the accounts are in default
and is categorized as NPA and proceedings under the
SARFAESI Act was initiated.
5. Having considered rival submission and facts and
circumstances of the case, I am of the opinion that if the
petitioners close one of accounts wherein the balance
outstanding is only Rs.2,855.25/- forthwith, the amounts
outstanding in the other two loan accounts can be permitted
W.P.(C)No. 30571 of 2009
-3-
to be paid in installments, within a reasonable time.
6. Accordingly the writ petition is disposed of
directing the petitioners to close the loan account in which
the balance outstanding is Rs.2,855.25/- only, within a period
of two weeks from today. The petitioners are further directed
to make payment of an amount of Rs.5,00,000/- (Rupees Five
lakhs only) on or before 31.1.2010 towards arrears in the
other two loan accounts. The respondents are directed to
keep in abeyance further coercive steps till such date. If the
petitioners make payment of the amount as stipulated above,
the respondent Bank shall issue a balance statement to the
petitioners showing the net amount outstanding, after
crediting all payments and after considering waiver of
interest/default interest and expenses if any possible. The
petitioners shall continue payment of the balance amount so
intimated along with future interest in six (6) equal monthly
installments falling due on or before 28.2.2010 and on or
before the last day of succeeding five (5) months.
W.P.(C)No. 30571 of 2009
-4-
7. It is made clear that on the event of failure to pay
any of the installments as stipulated as above, the Bank will
be free to proceed with further steps pursuant to the notices
already issued, and on any such event the petitioners will be
precluded from raising any subsequent challenge against
such proceedings either before this court or before any other
forum.
C.K. ABDUL REHIM
JUDGE
shg/