High Court Kerala High Court

Abide C.H vs North Malabar Gramin Bank on 2 June, 2010

Kerala High Court
Abide C.H vs North Malabar Gramin Bank on 2 June, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 7266 of 2010(G)


1. ABIDE C.H
                      ...  Petitioner

                        Vs



1. NORTH MALABAR GRAMIN BANK,
                       ...       Respondent

2. BRANCH MANAGER,NORTH MALABAR GRAMIN BANK

3. MANNAMMED NAHAZ, S/O.BABAKUNHI,

4. M.SALEENA, W/O.MUHAMMED NAHAZ,

                For Petitioner  :SRI.S.MOHAMMED AL RAFI

                For Respondent  :SRI.DEVAN RAMACHANDRAN

The Hon'ble MR. Justice P.R.RAMACHANDRA MENON

 Dated :02/06/2010

 O R D E R
                 P.R. RAMACHANDRA MENON J.
                    ~~~~~~~~~~~~~~~~~~~~~~~
                     W.P. (C) No. 7266 of 2010
                    ~~~~~~~~~~~~~~~~~~~~~~~
                 Dated, this the 02nd of June, 2010

                             JUDGMENT

The petitioner is before this Court being aggrieved of the steps

taken by the respondent Bank under the SARFAESI Act, seeking to

realize the amount stated as due from the borrowers of a loan availed

from the Bank, from whom the petitioner had purchased the property,

without knowing the security interest created over the said property.

The learned counsel for the petitioner submits that, the third and fourth

respondents herein had secured a loan from the second respondent

Bank, creating security interest over the property and the petitioner

was a bonafide purchaser.

2. The learned counsel for the Bank, with reference to the

contents of the statement, submits that the Writ Petition is not

maintainable, as the petitioner is a total stranger as far as the Bank is

concerned and the action being pursued by the Bank is only against the

3rd and 4th respondents/borrowers and the property over which security

interest was created, which hence is perfectly in tune with the relevant

provisions of the law. It is also stated that, by virtue of the relevant

provisions of the Act, the rights and liberties of the Bank stands

concluded and secured, notwithstanding anything contained in any

other provisions of law.

W.P. (C) No. 7266 of 2010
: 2 :

3. The learned counsel for the petitioner submits that, the only

grievance now pressed before this Court is that, the petitioner might be

permitted to clear the liability to the Bank in a phased manner. Despite

the service of notice to the 3rd and 4th respondents, nobody has entered

appearance on their behalf.

4. Taking note of the submissions made by the learned counsel

for the petitioner and that total outstanding liability will be nearly Rs. 10

lakhs, the petitioner is directed to clear the entire liability, if he wants to

save the property in question, by way of 6 equal monthly installments;

the first of which shall be effected on or before the 20th of June, 2010 to

be followed by the similar installments to be effected on before the 20th

of the succeeding months. Subject to this, the 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 installments as above, the Bank will be free

to proceed with further steps for realization the entire amount in a lump

sum, from the stage where it stands now. The rights and liberties

between the petitioner and respondents 3 and 4 are left open.

P. R. RAMACHANDRA MENON, JUDGE

kmd