IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC TUESDAY, THE 8TH APRIL 2008 / 19TH CHAITHRA 1930 W.P.(C).No. 10891 of 2008(V) ----------------------------------- PETITIONER: -------------- S.R.EDUCATIONAL AND CHARITABLE TRUST, S.R. BUILDING, MAIN ROAD, VARKALA, REP. BY ITS MANAGING TRUSTEE R.SHAJI BY ADV. SRI.ANIL K.NARENDRAN RESPONDENTS: ----------------- 1. UNION OF BANK OF INDIA, REGIONAL OFFICE STATUE, OPP. GOVERNMENT SECRETARIAT THIRUVANANTHAPURAM, REP. BY ITS DEPUTY GENERAL MANAGER 2. THE MANAGER, UNION BANK OF INDIA ATTINGAL BRANCH, SHANS COMPLEX OPP. KSRTC BUS STAND, ATTINGAL THIRUVANANTHAPURAM DISTRICT. BY ADV. SRI.A.S.P.KURUP, SC, UBI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/04/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. = = = = = = = = = = = = = = = = W.P.(C) No. 10891 OF 2008 V = = = = = = = = = = = = = = = = Dated this the 8th April, 2008. J U D G M E N T This writ petition was filed by a Charitable Trust which is running a Dental College. The Trust has availed of financial assistance from the respondent bank. Defaults were committed and what is apprehended by the petitioner is that the bank will classify the account into an NPA. Petitioner's proposals for avoiding classification as NPA are : (1) That the bank can appropriate the interest that is accrued on Exts. P4, P5 and P6 Fixed Deposits. (2) That the bank can appropriate the Fixed Deposit made by the petitioner as per Exts. P5 and P6 on expiry of 8 weeks from today. It is undertaken by the counsel for the petitioner that in case there is any hurdle in realising the Fixed Deposits covered by Exts. P5 and P6, the petitioner will make alternate arrangement to pay an equivalent amount to the bank. (3) Petitioner also undertakes that within 30 days from today, the petitioner shall remit another sum of W.P.(C) No.10891 OF 2008 -2- Rs.15 lakhs to the bank in discharging their liabilities. 2. I heard the counsel for the bank also, who submits that they are in the process of classifying the amount into an NPA. So far they have not done it. 3. In the circumstances of the case, I feel, the offer made by the petitioner as above, should be accepted by the bank and if it materialises, the bank should restrain itself from classifying the account as an NPA. 4. Therefore, I dispose of this writ petition directing that the bank will be free to act in terms of the offer made by the petitioner and recorded as above. It is clarified that for any reason if the offers made by the petitioner do not materialise the bank will be free to continue whatever action that is permissible in accordance with law. ANTONY DOMINIC JUDGE jan/-