IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH THURSDAY, THE 27TH SEPTEMBER 2007 / 5TH ASWINA 1929 WP(C).No. 26602 of 2004(P) -------------------------- PETITIONER: ------------ DEEPA, SANKARA VILASOM, KARIKKODE, KOLLAM. BY ADV. SRI.B.KRISHNA MANI RESPONDENTS: ------------- 1. THE AUTHORISED OFFICER, THE QUILON CO-OPERATIVE BANK LTD.NO.960, HEAD OFFICE, Y.M.C.A. ROAD, KOLLAM-1. 2. THE QUILON CO-OPERATIVE URBAN BANK LTD.NO.960, HEAD OFFICE, Y.M.C.A. ROAD, KOLLAM-1, REPRESENTED BY ITS SECRETARY. 3. THE SPECIAL SALE OFFICER, THE QUILON CO-OPERATIVE URBAN BANK LTD.NO.960, HEAD OFFICE, Y.M.C.A. ROAD, KOLLAM-1. 4. G. SUNDARARAJAN, SANKARA VILASOM, KARIKKODE, KOLLAM. (FROM CHITTOOR VEEDU, PATTATHANAM, KOLLAM.) 5. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, KOLLAM. BY ADV. SRI.N.DHARMADAN (SR.) SMT.R.RANJINI SPL.GOVT.PLEADER SRI.P.K.RAVIKRISHNAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 27/09/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN W.P.C.NO.26602/04 PETITIONER'S EXHIBITS EXT.P1 TRUE COPY OF THE NOTICE DTD. 24-06-04 EXT.P2 TRUE COPY OF THE ORDER DTD. 25-08-03 PASSED BY THE KERALA CO-OPERATIVE TRIBUNAL, TRIVANDRUM. EXT.P3 TRUE COPY OF THE JUDGMENT IN A PROCEEDING DTD. 28/2/03 EXT.P4 TRUE COPY OF THE RECEIPT DTD. 25-5-02 EXT.P5 TRUE COPY OF THE RECEIPT DTD. 11-6-01 EXT.P6 TRUE COPY OF THE NOTICE DTD. 15-11-03 FROM R1. /True Copy/ PA to Judge. K.M.JOSEPH, J. - - - - - - - - - - - - - - - - - - - - - W.P.(c).No.26602 OF 2004 - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 27th day of September, 2007 JUDGMENT Petitioner is a guarantor in respect of a loan availed by the 4th respondent. Petitioner challenges Exts.P1, P2 and P6. There is a demand to levy interest at the rate of 6% per annum. Ext.P2 is the order of the Tribunal allowing the bank to realise the amount due with 19% interest. Ext.P6 is the notice issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. Petitioner would contend that Co-operative Bank cannot invoke the provisions of the Securitisation Act. Section 13 of the Act is available to a secured creditor. Secured creditor is defined as including the bank and the banking company. Undoubtedly, Co-operative Bank is not a banking company , but since the definition of secured creditor includes bank also and there is a notification issued including the Co-operative Bank also as a Bank under Section 2(C) (V), it would fall within the ambit of the word “Bank” and therefore it would be a secured creditor under Section 13 of the Securitisation Act. WPC No.26602/04 2 In such circumstances, I reject the argument of the petitioner. Then further question relating to interest. Learned counsel for the respondent-Bank submits that if the petitioner approaches the respondent-Bank, the Bank will consider the question of reduction of interest as permissible. In the light of this, the writ petition is disposed of directing that if the petitioner remits a sum of Rs. 75,000/- ( Rupees Seventy Five Thousand only) and files a representation before the respondent-Bank within a period of two weeks from today, the respondent-Bank will consider the same and take a decision and communicate the same to the petitioner within a period of three weeks from the date of filing of the representation. Till such time as a decision is taken, recovery steps will be kept in abeyance. If the petitioner does not file a representation within two weeks from today and remits the amount of Rs. 75,000/- along with the representation, the petitioner will lose the benefit of this judgment and it is open to the respondent-Bank to proceed against the petitioner in accordance with law. (K.M.JOSEPH, JUDGE) sv. WPC No.26602/04 3