SALIM MANZOOR T M Vs. STATE BANK OF TRAVANCORE STRESSED ASSETS RESOLUTION CENTRE KADAPPAKKADA KOLLAM DISTRICT

JUDGEMENT

(1.) PETITIONER says that for the purpose of his business in 2009, he had availed of a cash credit facility from the respondent Bank. According to the petitioner due to set backs in business payments could not be made and on account of the defaults, SARFAESI proceedings were initiated. Finally he was issued Ext.P4 possession notice and at that stage the writ petition has been filed with a prayer to direct the Bank to regularize the loan in question.

(2.) ON instructions, standing counsel appearing for the Bank submits that the cash credit facility was availed by the petitioner hyphothecating the goods. It is also submitted that as on 8.12.2012 the liability is Rs.39,25,673/-. Moreover, the counsel also submits that on inspection of the godown of the petitioner, it was found that the godown was virtually empty. It is stated that there is default in payment and therefore the Bank had to initiate further proceedings.

(3.) TAKING note of the submission made and also the objections raised by the learned counsel for the Bank, I direct that the petitioner shall remit 1/4th of the liability due on or before 31.3.2012 and subject to payment as above, further coercive action against the mortgaged assets of the petitioner shall be deferred. If the payment is made as above, petitioner will also be permitted to pay the balance liability in 7 equal monthly installments. The first installment shall be paid on or before the last working day of April, 2012 and the subsequent installments shall be paid on or before the last working day of every succeeding month. Subject to payment as above coercive action shall be deferred and in case default is committed Bank will be free to continue the proceedings already initiated. Writ Petition is disposed of as above.