IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 24843 of 2009(A)
1. UNNIKRISHNAN.S.,
... Petitioner
Vs
1. STATE BANK OF INDIA,
... Respondent
2. AUTHORISED OFFICER,
For Petitioner :SRI.M.BALAGOVINDAN
For Respondent : No Appearance
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :09/09/2009
O R D E R
C.K.ABDUL REHIM, J.
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W.P.(C).No.24843 OF 2009
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Dated this the 9th day of September, 2009
J U D G M E N T
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1. The petitioner had availed a loan from the 1st
respondent Bank to the tune of Rs.7 lakhs, repayment of which
was defaulted and consequently the Bank had initiated
proceedings for recovery of the amount by taking over
possession of the secured assets under the provisions of the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act 2002 (SARFAESI Act).
Ext.P2 is the notice issued under Section 13(4) of the said At.
Contention of the petitioner is that he is ready and willing to
discharge entire debts due to the Bank in installments, provided
sufficient time is granted.
2. Heard Standing Counsel for the respondents. It is
submitted that the petitioner is a gross defaulter and the arrears
accrued in the loan account as on 1.3.2009 is Rs.9,70,784/-. It is
further submitted that the petitioner had unauthorisedly put the
secured assets in possession of third parties and the Bank is now
finding it difficult to take over possession, because of the illegal
and malafide acts on the part of the petitioner. The standing
counsel vehemently opposed granting any installment facility.
3. Having considered the rival contentions I am of the
W.P.(C).24843/09 2
opinion that some indulgence can be shown in the matter to
allow the petitioner to settle the liability before permitting the
Bank to take over physical possession and conducting sale of the
properties. Therefore the respondent Bank is directed to keep
in abeyance all proceedings pursuant to Ext.P2 notice, if the
petitioner makes payment of an amount of Rs.2,50,000/- on or
before 15.10.2009. On payment of the said amount the 1st
respondent Bank shall furnish a statement of account to the
petitioner showing the entire balance as on that date after
crediting all payments, and the petitioner shall pay the entire
balance so intimated in 5 equal monthly installments starting
from 15.11.2009 onwards and on the 15th day of every
succeeding month.
4. It is made clear that on the event of default in
payment of the initial amount or any subsequent installments the
benefit granted under this Judgment will stand automatically
recalled and the petitioner will be precluded from raising any
further challenge against the proceedings under the SARFAESI
Act. It is further made clear that the benefit granted as above is
subject to the condition that the petitioner is precluded from
raising any subsequent challenge against the proceedings under
the SARFAESI Act, before this Court or before any other Forum.
C.K.ABDUL REHIM, JUDGE.
okb