IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE20H DAY OF FEBRUARY20141ST PHALGUNA, 1935 WP(C).No. 5001 of 2014 (A) --------------------------- PETITIONER(S): -------------------------- 1. M.G.SURESH, AGED62YEARS, S/O.GANGADHARAN, MULLOTH HOUSE, CHAKKARAPARAMBU, THAMMANAM.P.O., ERNAKULAM DISTRICT.
2. K.S.LIJU, AGED35YEARS, S/O.SURESH, MULLOTH HOUSE, CHAKKARAPARAMBU, THAMMANAM.P.O., ERNAKULAM DISTRICT. BY ADVS.SRI.N.A.SHAFEEK SRI.S.A.ANAND RESPONDENT(S): ---------------------------- 1. STATE BANK OF TRAVANCORE REGIONAL OFFICE, (REGION IV), PADMABHAVAN BUILDING, OPP. KSRTC BUILDING, MAVELIKKARA, ALAPPUZHA DISTRICT-690 101. REPRESENTED BY ITS AUTHORIZED OFFICER/CHIEF MANAGER.
2. THE BRANCH MANAGER STATE BANK OF TRAVANCORE, KARIPUZHA BRANCH ALAPPUZHA DISTRICT. 690 103. BY ADV.SRI.SANTHOSH MATHEW SRI.SATHISH NINAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON2002-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 5001 of 2014 (A) --------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- P1- TRUE COPY OF THE LETTER DATED611.2013 ISSUED BY THE2D RESPONDENT. P2- TRUE COPY OF NOTICE DATED512.2013 UNDER SECTION132) OF SERFEASI ACT PUBLISHED BY THE1T RESPONDENT IN MATHRUBHOOMI DAILY DATED912.2013. P3- TRUE COPY OF THE REPRESENTATION-CUM OBJECTION SUBMITTED BY THE PETITIONERS BEFORE THE1T RESPONDENT DATED2701.2014. P4- TRUE COPY OF THE LETTER DATED301.2014 ISSUED BY THE1T RESPONDENT. RESPONDENT(S)' EXHIBITS NIL --------------------------------------- /TRUE COPY/ P.A. TO JUDGE VPV P.R. RAMACHANDRA MENON, J.
- - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No.5001of 2014 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 20th day of February, 2014
JUDGMENT
The first petitioner is the guarantor to the financial transaction (O.D. Facility) availed by the 2nd petitioner/his son, from the respondent Bank to the tune of Rs.4 lakhs. Admittedly there occurred some default and the Bank proceeded steps under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) which made the petitioners to approach this Court by filing this writ petition. The learned counsel for the petitioners submits that the facility extended by the Bank was subsequently got enhanced to Rs.7 lakhs and that the non-payment of the due amount was not wilful, but due to some unforeseen pecuniary circumstances. It is stated that the petitioners after taking earnest efforts have revived the business, doing the operation at Ernakulam and are ready to have the loan account regularised. The prayer is to grant some breathing W.P.(C)No.5001of 2014 -2- time in this regard and to keep the coercive proceedings in abeyance.
2. Sri. Santhosh Mathew, who entered appearance on behalf of the Bank submits on instructions that there is absolutely no merit or bonafides in the pleadings and prayers.
3. The shop which was being conducted by the 2nd petitioner in Mavelikkara is not in operation now and stands closed down for more than 1 = years. The stock, over which hypothecation was created, is not available and the concerned building is now being occupied by somebody else. The outstanding liability as on date is nearly Rs.8.1 lakhs, including subsequent interest and such other charges, after issuance of Ext.P1 notice in this regard on 6.11.2013.
4. After hearing both the sides, this Court finds that the only relief that can be granted to the petitioners is by enabling them to satisfy the liability by way of instalments. Accordingly, the petitioners are permitted to clear the W.P.(C)No.5001of 2014 -3- entire liability by way of 'ten' equal monthly instalments, the first of which shall be effected on or before the 10th day of March, 2014; to be followed by similar instalments to be effected on or before the 10th of the succeeding months. Subject to this, the coercive proceedings being pursued against the petitioners shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to repayment of the amount as above, it will be open for the respondent Bank to proceed with further steps for realisation of the entire amount in lump, from the stage where it stands now. Writ petition is disposed of. Sd/- P.R. RAMACHANDRA MENON, JUDGE shg/