SARFAESI enforcement discretion upheld: limited extra time granted for settlement while preserving recovery rights on default.

In a SARFAESI enforcement dispute, the Kerala HC considered whether an intra-court appeal should disturb a Single Judge's discretionary order granting the borrower further time to comply with a one-time settlement and delaying sale of the secured asset. The Court noted default, classification of the account as non-performing, initiation of proceedings under Section 13(2), and continued non-payment, but found no compelling reason to interfere with the limited equitable relief already granted. It extended the payment period while preserving the secured creditor's right to proceed with recovery if the settlement amount was not paid within the extended time.

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Issues: Whether the order of the learned Single Judge granting time to the borrower to comply with the one time settlement and postponing sale of the secured asset called for interference in intra-court appeal.

Analysis: The borrower had defaulted in repayment, the account had been classified as non-performing, and proceedings had been initiated under the SARFAESI regime after issuance of notice under Section 13(2). The borrower had also failed to honour the extended settlement schedule, and the record showed continued non-payment even during the appeal period. The Court noted that the writ petition had been entertained despite the availability of an efficacious statutory remedy, but the learned Single Judge had exercised discretion to afford a further opportunity to clear the dues. In the circumstances, the Court found no justification to interfere with that discretionary relief, though it considered it appropriate to extend the time for payment and protect the Bank's enforcement rights in default.

Conclusion: The order of the learned Single Judge was substantially sustained, with the time for payment extended and the Bank left free to proceed with recovery upon default.

Final Conclusion: The appeals were disposed of by maintaining the borrower's limited relief of additional time while preserving the Bank's right to enforce its security if the settlement amount was not paid within the extended period.

Ratio Decidendi: Where a court has already exercised discretion to grant limited time for compliance in a SARFAESI matter, interference in intra-court appeal is unwarranted absent compelling grounds, and the secured creditor's recovery rights remain intact on default.

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