IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 26158 of 2010(T)
1. E.G.BINDU, W/O.RAJAMANICKAN ,AGED 36
... Petitioner
Vs
1. THE STATE BANK OF INDIA
... Respondent
For Petitioner :SRI.JACOB SEBASTIAN
For Respondent : No Appearance
The Hon'ble MR. Justice P.R.RAMACHANDRA MENON
Dated :20/08/2010
O R D E R
P.R.RAMACHANDRA MENON, J
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WP(C) NO. 26158 OF 2010
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Dated this the 20th day of August, 2010
JUDGMENT
The petitioner availed a term loan of Rs.1.4 lakhs and a cash credit
facility of nearly Rs.2.2 lakhs in the year 2008, creating security interest
over the property, in connection with the business of the petitioner, but the
repayment could not be effected on time as scheduled, in view of the
sudden down fall of the business. This made the petitioner a defaulter;
under which circumstance, the Bank proceeded with steps under the
SARFAESI Act, which in turn is under challenge in this Writ Petition.
2. The learned counsel for the petitioner submits that the
petitioners does not intend to press any of the grounds nor does she
intend to avail the statutory remedy under Section 17 of the Act; however
praying to have the loan account regularized and rescheduled, permitting
the petitioner to clear the liability by way of reasonable instalments. The
learned counsel appearing for the Bank submits on instructions that,
because of the particular nature of the transaction and also extent of
defaults, the relief sought for to have the loan rescheduled is not possible
to be entertained. Taking note of the submissions made by the learned
counsel for the petitioner and for the Bank, this Court permits the
petitioner to clear the outstanding liability by way of reasonable
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instalments. Accordingly, the petitioner is directed to clear the entire
liability, which is stated as nearly 3.97 lakhs with further interest and cost, if
any, by way of `six’ equal monthly instalments, the first of which shall be
effected on or before the 20th of September, 2010, to be followed by similar
instalments to be effected on or 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 for the time being. It is made clear
that, if any default is committed by the petitioner in satisfying the liability as
above, the respondent will be at liberty to proceed with further steps for
realization of the entire amount in a lump sum.
The Writ Petition is disposed of accordingly.
P.R.RAMACHANDRA MENON
JUDGE
dnc