Petitioners have approached this Court challenging the proceedings initiated by the respondent bank under Section 14 of the SARFAESI Act (hereinafter referred to as 'the Act'). The application Ext.P1 is posted before the Chief Judicial Magistrate Court, Kasaragod on 24/10/2014.
2. It is not in dispute that pursuant to the notice issued under Section 13(2) of the Act, petitioners had not filed any objection and therefore the respondent bank has issued notice under Section 13(4) of the Act. Since possession was not handed over, the bank had proceeded to invoke Section 14 of the Act. The aforesaid action of the bank cannot be challenged by the petitioners in this proceedings. If at all the petitioners have any objection, they will have to approach the Tribunal under Section 17 of the Act.
3. The learned counsel for the respondents submits that the total amount of outstanding would come to Rs.65,00,000/- and no payment has been effected so far. The learned counsel for the petitioners seeks time to repay the entire amount in instalments.
4. Having regard to the aforesaid submissions, I am of the view that an opportunity should be granted to the petitioners to repay the entire amount. Accordingly, this writ petition is disposed of as under:
i) The Chief Judicial Magistrate is free to pass appropriate orders in Ext.P1.
ii) The petitioners shall pay an amount of Rs.10,00,000/- (Rupees ten lakhs only) to the respondent bank within a period of ten days.
Iii) The balance amount shall be paid by the petitioner in nine equal monthly instalments starting from 20/11/2014.
iv) Petitioner shall surrender possession of item Nos.
(1) to (3) in the A Schedule property as shown in Ext.P1 to the Advocate Commissioner and in respect of item No.(4), the bank shall take only symbolic possession.
v) If there is default in payment of any of the instalments, it shall be open for the bank to take possession of item No.(4) as well and take further proceedings in accordance with law.
(sd/-) (A.M.SHAFFIQUE, JUDGE) jsr