IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 29596 of 2009(T)
1. M/S. MAHALAKSHMI (REGISTERED FIRM),
... Petitioner
2. S.GODANDRAJ,
Vs
1. UNION OF INDIA, REPRESENTED BY
... Respondent
2. THE AUTHORISED OFFICER,
3. INDIAN OVERSEAS BANK,
For Petitioner :SRI.M.RAMASWAMY PILLAI
For Respondent :SRI.T.P.M.IBRAHIM KHAN,ASST.SOLICITOR
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :16/11/2009
O R D E R
C.K. ABDUL REHIM, J.
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W.P.(C)No. 29596 of 2009
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Dated this the 16th day of November, 2009
J U D G M E N T
1. Challenge in this writ petition is against
proceedings initiated by the respondents 2 & 3 under the
provisions of the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002 (SARFAESI Act). First petitioner is a partnership firm
to which 2nd petitioner is a partner. A business loan was
availed by the firm from the 3rd respondent Bank to the tune
of Rs.15 lakhs during the year 2002. Consequent to default
committed in repayment, respondents 2 & 3 had initiated
proceedings under the SARFAESI Act and the property was
taken over possession on issuing notice under Section
13 (4), as evidenced by Ext.P10.
2. According to the petitioners they have effected
remittance of about Rs.3 lakhs even after issuing Ext.P10
notice. Further contention is that eventhough the
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petitioners have approached respondents 2 & 3 seeking
reasonable time to pay off the entire liability such request
was not acceded to.
3. This court through an interim order dated
20.10.2009 directed the petitioners to make payment of
Rs.2 lakhs on or before 15.11.2009. It is reported that the
said amount was already paid. In the statement filed on
behalf of the respondents 2 & 3 it is averred that the
balance as on 19.10.2009 is Rs.11,72,110/-, along with
expenses and cost. It is noted that after crediting payment
of Rs.2 lakhs the amount outstanding will be around
Rs.9.75 lakhs at present.
4. Learned standing counsel appearing for
respondents 2 &3 submitted that the business concern of
the petitioners are in a position to afford payment of the
liability, within a short period. On the other hand learned
counsel for the petitioners seeks indulgence of this court in
permitting reasonable time for effecting payment of the
entire balance.
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5. Having considered rival submissions and facts
and circumstances of the case, I feel that reasonable time
can be granted to the petitioners to pay off the entire
liability.
6. Therefore the writ petition is disposed of directing
the petitioners to make payment of a further sum of
Rs.2 lakhs on or before 15.12.2009. The respondents are
directed to keep in abeyance further steps of recovery till
such date. On payment of the said amount, the respondents
shall issue a balance statement to the petitioners, after
crediting all payments and after considering waiver of
interest/default interest and expenses if any to the possible
extent. The petitioners shall continue payment of the
balance so intimated, in three (3) equal monthly
installments thereafter, falling due on or before 15.01.2010
and on or before the 15th day of two succeeding months.
7. It is made clear that on the event of failure to pay
any of the installments as stipulated as above, the
respondents will be free to proceed with further steps
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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/