IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 9TH JUNE 2010 / 19TH JYAISTHA 1932 WP(C).No. 16289 of 2010(I) -------------------------- PETITIONER: --------------- M.C. MOHANAN, S/O. LATE CHELLAPPAN, RAMNIKA NILAYAM, ULIYATHADKA, P.O. OF MADHUR, KASARAGOD. BY ADV. SRI.T.B.SHAJIMON SMT.GOVINDU P.RENUKADEVI RESPONDENTS: --------------- 1. CANARA BANK, BANK ROAD BRANCH, KASARAGOD REPRESENTED BY ITS AUTHORISED OFFICER, KASARAGOD KASARAGOD TALUK AND DISTRICT. 2. SMT. CHANDRAMATHI, W/O.RADHAKRISHNAN, K.K. COTTAGE, CHATTUMKUZHI, HIDAYATH NAGAR, KASARAGOD. STANDING COUNSEL SRI.GOPINATH MENON THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J -------------------------------------------- WP(C) NO. 16289 OF 2010 -------------------------------------------- Dated this the 9th day of June, 2010 JUDGMENT The petitioner stood as a guarantor to the loan availed by the 2nd respondent from the 1st respondent creating security interest over the property in question but since the repayment was not effected on time, the Bank declared the account as 'NPA' and proceeded with steps under the SARFAESI Act, which forms the subject matter of challenge in this Writ Petition. 2. The learned counsel for the petitioner submits that, the petitioner has approached the Bank seeking for the benefit of 'OTS' or to enable the petitioner to clear the entire amount by way of reasonable instalments. The learned counsel for the Bank submits on instructions that the total outstanding liability in respect of loan transaction is about 6.85 lakhs and that the Bank is ready and willing to settle the payment by 'OTS' amount of Rs.6.4 lakhs. 3. After considering the facts and circumstances, this Court finds it fit and proper to permit the petitioner to clear the entire liability in a phased manner. Accordingly, the petitioner is permitted to clear the entire loan account by way of 'six' equal monthly instalments, the first of which shall be effected on or before the 30th of this month, to be followed by 2 WP(C) No. 16289/2010 similar instalments to be effected on or before the 30th of the succeeding months. Subject to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance. It is also made clear that, if any default is committed by the petitioner in satisfying the overdue amount as above, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum, by pursuing such exercise from the stage where it stands now. The petitioner is also at liberty to approach the Bank for availing the benefit of settlement as submitted before this Court by remitting a total sum of Rs.6.2 lakhs in a lump sum. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc