M.S.Sudarsanakumar vs City Union Bank Limited Rep.By on 3 February, 2010

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 2419 of 2010(B)


1. M.S.SUDARSANAKUMAR, AGED 45 YEARS,
                      ...  Petitioner

                        Vs



1. CITY UNION BANK LIMITED REP.BY.
                       ...       Respondent

2. THE BRANCH MANAGER,

3. SUNILKUMAR.P., 38 YEARS,

                For Petitioner  :SRI.A.F.SEBASTIAN

                For Respondent  : No Appearance

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

 Dated :03/02/2010

 O R D E R
                 P.R.RAMACHANDRA MENON, J.
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                    W.P.(C) No. 2419 of 2010
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                Dated this the 3rd February, 2010

                             JUDGMENT

The petitioner is challenging the steps taken by the

respondent bank invoking the provisions under the SARFAESI Act for

realization of the amount due under a loan transaction. The case of

the petitioner is that he had availed a term loan of Rs.2 lakhs and a

cash credit facility to the tune of Rs.3 lakhs from the respondent

bank, creating security interest over the property, but due to some

unforeseen circumstances, he could not honour the commitment

and turned to be a defaulter, when the bank declared the loan

account as “NPA” and proceeded with steps under the SARFAESI Act,

which are under challenge in this writ petition.

2. The learned counsel for the respondent bank, on

instructions, submits that, as on 1-10-2009, a sum of Rs.5.84 lakhs

is due from the petitioner. It is also submitted that the request

made by the petitioner to have time to wipe off the entire liability

can be considered only on proving bona fides by effecting

substantial payment towards the liability.

W.P.(C) No. 2419/2010 2

3. The learned counsel for the petitioner submits that the

petitioner had made arrangements to pay off the entire liability by

sale of a portion of some other property.

4. Considering the facts and circumstances, the petitioner is

directed to deposit a sum of Rs.1 lakh forthwith, at any rate within

two weeks from today and the balance amount shall be satisfied

within a period of three months thereafter. Subject to the above, the

coercive steps for realization of the due amount shall be kept in

abeyance. It is made clear that if any default is committed in

satisfying the liability as above, the respondent bank is at liberty to

proceed with the steps for realization of the entire amount in a lump

sum.

The Writ Petition is disposed of accordingly.

P.R.RAMACHANDRA MENON,
JUDGE

mn.