IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN FRIDAY, THE 6TH MAY 2011 / 16TH VAISAKHA 1933 WP(C).No. 12881 of 2011(I) ---------------------------------- PETITIONER(S): --------------- RAJENDRAN.S., S/O.SIVAN MENON, 41/783, PULLEPADY ROAD, ERNAKULAM, KOCHI-682 018. BY ADV. SRI.GEORGE ZACHARIAH ERUTHICKEL RESPONDENT(S): ------------------- 1. THE AUTHORISED OFFICER, FEDERAL BANK LTD., REGISTERED OFFICE, ALWAYE, KERALA-683 101. 2. THE FEDERAL BANK LTD., ANGAMALY BRANCH, REP.BY ITS ASSISTANT GENERAL MANAGER, K.V.VARKEY MEMORIAL BUILDING, ANGAMALY-683 572. ADV. SRI.A.ANTONY FOR R2 SMT.LEELAMMA ANTONY FOR R2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06/05/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 12881 of 2011 APPENDIX PETITIONER'S EXHIBITS EXT.P1: COPY OF REGISTERED NOTICE UNDER SECTION 13(4) OF THE SECURITISATION & RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 r/w. RULE 8(1) OF THE SECURITY INTEREST (ENFORCEMENT) RULES, 2002. TRUE COPY PA TO JUDGE. K. SURENDRA MOHAN, J. ----------------------------------- W.P.(C) No.12881OF 2011 --------------------------------------- Dated this the 6th day of May, 2011 JUDGMENT The petitioner has filed this writ petition challenging recovery proceedings initiated against him by the respondents. The petitioner had taken a loan from the 2nd respondent bank but has defaulted repayment of the same. Therefore, the bank has initiated proceedings against him for recovery of the defaulted amount. Section 13(4) notice has been issued under the Securitisaion and Reconstruction of Financial Assets and Enforcement of Securities Interest Act. 2. Advocate Smt. Leelamma Antony, who appears for the respondents, submits that the defaulted amount due from the petitioner works out to Rs.1,75,000/-. If the said amount is paid before 31.5.2011, the bank would regularise the petitioner's loan and the balance amount could be paid by him in monthly instalments in accordance with the terms of the original agreement. The learned counsel for the petitioner on the other hand seeks permission to pay the defaulted amount in six equal monthly instalments. 3. Since the petitioner is ready to regularise payment, I am of the view that the petitioner can be given an opportunity to regularise W.P.(C)No.12881/11 2 the loan by paying the defaulted amount in instalments. Accordingly, this writ petition is disposed of directing the petitioner to pay the defaulted amount of Rs.1,75,000/- in four equal monthly instalments commencing from 28th May 2011. The subsequent instalments shall fall on the 28th of each subsequent month thereafter. The petitioner shall pay the monthly instalments payable by him as per the original loan agreement, in addition to the instalment amount that is directed to be paid as above. On the account being regularised, the petitioner would certainly be entitled to clear the entire amount in accordance with the monthly instalments stipulated by the original loan agreement. It is further made clear that if the petitioner commits default in payment of any one instalment, the bank shall be free to initiate appropriate proceedings in accordance with law for the recovery of the amount due to it. Pending payment of the instalments as stipulated above, all further action to recover any amount pursuant to Ext.P1 notice shall remain stayed. K. SURENDRA MOHAN, JUDGE acd W.P.(C)No.12881/11 3 W.P.(C)No.12881/11 4