IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN TUESDAY, THE 7TH SEPTEMBER 2010 / 16TH BHADRA 1932 WA.No. 1524 of 2010() --------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.9060/2010 Dated 22/07/2010 .................... APPELLANT(S): PETITIONER ------------------------ MEENA AJITHKUMAR,W/O.LATE AJITHKUMAR.K.S AGED 50 YEARS, KOYIPPILLY HOUSE, MUNAMBAM, PALLIPORT PO,ERNAKULAM DISTRICT. BY ADV. SRI.SHOBY K.FRANCIS RESPONDENT(S): RESPONDENTS -------------------------- 1. THE FEDERAL BANK LTD., REGISTERED OFFICE ALWAYE, KERALA,REP. BY ITS CHAIRMAN. 2. AUTHORIZED OFFICER CUM CHIEF MANAGER (UNDER SARFAESI ACT) FEDERAL BANK LTD., NORTH PARAVOOR BR., ERNAKULAM DISTRICT. BY SC SRI. MOHAN JACOB GOERGE. THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 07/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR, & K. SURENDRA MOHAN, JJ. -------------------------------------------- W. A. No. 1524 of 2010 -------------------------------------------- Dated this the 7th day of September, 2010 JUDGMENT Ramachandran Nair, J. Heard counsel for the appellant and counsel appearing for the Bank who took notice on admission. Loan was availed by the late husband of the appellant. Appellant's case is that business collapsed and that led to default by her late husband in payment of arrears of the loan. It is seen that after the Award by the Lok Adalat in 2005, defaulter has paid Rs. 1 lakh and the appellant, the widow, paid another Rs. 2 lakhs. Appellant's case is that relatives of her late husband are helping her to clear the arrears and business in petrol bunk is currently run by them. In any case appellant's counsel has given a suggestion in Court that monthly instalment of substantial amount of Rs. 1 lakh together with interest will be paid by the appellant. We feel the suggestion given by the appellant's counsel is quite reasonable because after the death of the borrower, widow is certainly entitled to WA 1524/2010 2 compassionate treatment by the Bank. However, we are inclined to grant relief to the appellant only if the appellant accepts her counsel's suggestion and gives an undertaking in Bank that she will discharge the balance liability in monthly instalment of Rs. 1 lakh together with interest thereon and any default will entitle the Bank to proceed with record. We therefore allow the Writ Appeal by vacating the judgment of the learned single Judge and dispose of the WPC by directing the respondents to withhold all recovery proceedings against the appellant on condition that appellant clears the entire arrears in monthly instalment of Rs. 1 lakh and along with it running interest which will be computed and given by the Bank to the appellant within one week prior to the date of payment. The Bank Manager will communicate to the appellant the interest payable along with Rs. 1 lakh, giving the details of the rate applied. The first instalment will be paid on or before 20th of this month and balance on or before 20th of every succeeding month. Bank will work out the actual liability and give a statement to the appellant as stated above to clear the arrears. However, if the appellant violates the undertaking given to the Bank, WA 1524/2010 3 the instalment facility granted by us will automatically stand vacated on first default, and thereafter the Bank will be free to proceed with recovery. (C.N.RAMACHANDRAN NAIR) Judge. (K. SURENDRA MOHAN) kk Judge. WA 1524/2010 4