IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 3RD JUNE 2009 / 13TH JYAISHTA 1931 WP(C).No. 8719 of 2009(H) ------------------------- PETITIONERS: --------------- 1. RAMACHANDRAN.K., AGED 60 YEARS, S/O.KUNJIRAMA KURUP, "SREENILAYAM", ATHUDITHAZHAM, PANTHEERANKAVU, KOZHIKODE. 2. JAYAKUMARI P.O., AGED 55 YEARS, W/O.RAMACHANDRAN K., "SREENILAYAM", ATHUDITHAZHAM, PANTHEERANKAVU, KOZHIKODE. 3. JYOTHI RAJ, AGED 29 YEARS, S/O.RAMACHANDRAN.K., "SREENILAYAM", ATHUDITHAZHAM, PANTHEERANKAVU, KOZHIKODE. 4. JENIL RAJ, AGED 27 YEARS, S/O.RAMACHANDRAN.K., "SREENILAYAM", ATHUDITHAZHAM, PANTHEERANKAVU, KOZHIKODE. BY ADV. MR. AVM.SALAHUDIN MS. P.Y.SHEHEERA RESPONDENTS: --------------- 1. THE FEDERAL BANK LTD., REPRESENTED BY MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, REGD.OFFICE, ALWAYE, KERALA. 2. AUTHORISED OFFICER, THE FEDERAL BANK LTD., PERACHUNNI TOWERS, INDIRA GANDHI ROAD, KOZHIKODE-673004. 3. THE MANAGER, THE FEDERAL BANK LTD., PUTHIYARA BRANCH, PERACHUNNI TOWERS, INDIRA GANDHI ROAD, KOZHIKODE-673004. ADV. MR. MOHAN JACOB GEORGE FOR R1 TO R3 MS. P.V.PARVATHI FOR R1 TO R3 MS. REENA THOMAS FOR R1 TO R3 MR. L.RAM MOHAN FOR R1 TO R3 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 8719 of 2009 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 3rd day of June, 2009 JUDGMENT Proceedings taken by the first respondent Bank, against the petitioners for realization of the amount due from them, invoking the relevant provisions under the SARFAESI Act, are under challenge in the present Writ Petition. 2. Case of the petitioners is that, the loan was availed by the first petitioner for purchasing a residential building in the year 2004. The first petitioner is a retired police constable and the petitioners 2 to 4 are the sureties to the transaction. The grievance of the petitioners is that the default occurred only due to some unforeseen circumstances and never because of any wilful default of deliberate negligence. 3. When the matter came up for consideration before this Court on 18.3.2009, the dispossession was stayed for a period of three months, if the first petitioner deposited a sum of Rs.50,000/- on or before 28.3.2009, a sum of Rs. 75,000/- on or before 30.4.2009 and yet another sum of Rs. 50,000/- on 22.5.2009. When the matter came up for further consideration on 26.5.2009, this Court sought for instructions from the respondent Bank as to the amount required for regularization of the loan account as on date. WP (C) No. 8719 of 2009 : 2 : 3. The learned counsel appearing on behalf of the respondents, submits that, as on 29.5.2009, a sum of Rs.1,06,809/- is due as it arrears, apart from the incidental expenses, for regularization of the loan account. 4. The learned counsel appearing for the petitioners submits that the first petitioner has already remitted a sum of Rs.50,000/- on 18.3.2009 as evident from Ext.P5, produced along with I.A. No. 5939 of 2009. The learned counsel further submits, with reference to the specific contentions taken in paragraph 2 of the supporting affidavit, that the first petitioner is ready and willing to clear the entire liability towards Bank within a period six months and steps are being pursued in this regard, taking earnest efforts to wipe off entire liability by availing the benefit of 'one time settlement'. 5. The learned counsel for the first respondent submits that for considering the claim for 'OTS', petitioners have to approach the Bank by filing appropriate representation in this regard and necessary sanction has to be obtained from the higher authorities in this regard. 6. Considering the facts and circumstances, first petitioner is directed to approach the third respondent within a period of two weeks, for claiming benefit of 'OTS' to enable the petitioners to clear the entire liability due to the Bank within a specified time and on such an event WP (C) No. 8719 of 2009 : 3 : matter shall be considered and finalized by the respondents within a period of one month thereafter. 7. Taking note of the turn of events and also in view of the interim order already passed by this Court and more particularly, in the light of the readiness expressed from the part of the petitioners to clear the entire liability, the petitioners are directed to effect a deposit of Rs.1,00,000/- within a period of one month to prove their bona fides, so as to enable the respondent Bank to consider the claim for 'OTS'. The balance outstanding amount, of course, subject to the decision to be taken by the Bank as to the claim for 'OTS', shall be cleared by the petitioners in the manner specified by the Bank. The coercive steps now being pursued shall be kept in abeyance till such time. It is made clear that, if the petitioners fail to honour the commitment, the respondent Bank will be at liberty to proceed against the petitioners for realization of the entire amount in a lump sum. The Writ Petition is disposed of accordingly. P. R. RAMACHANDRA MENON, JUDGE kmd