IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.T.RAVIKUMAR WEDNESDAY, THE 22ND DECEMBER 2010 / 1ST POUSHA 1932 WP(C).No. 36958 of 2010(T) -------------------------- PETITIONER(S): --------------- IBRAHIM ALAVI, MARUTHAYIL, VAZHIKADAVU, MALAPPURAM. BY ADV. SRI.D.SOMASUNDARAM RESPONDENT(S): --------------- 1. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), MALAPPURAM, 2. MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD., MALAPPURAM, REPRESNTED BY ITS GENERAL MANAGER. 3. BRANCH MANAGER, NILAMBUR BRANCH DISTRICT CO-OPERATIVE BANK LTD., NILAMBUR P.O., MALAPPURAM DISTRICT. BY G.P.SRI.BASANT BALAJI FOR R1 ADV. SMT.P.VIJAYAMMA FOR R2-R3 SRI.V.KRISHNA MENON FOR R2-R3 SRI.PRINSUN PHILIP FOR R-R3 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/12/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.T.RAVIKUMAR, J. ---------------------------- W.P.(C)No.36958 of 2010 ---------------------------- Dated 22nd December, 2010 JUDGMENT The petitioner has availed a loan of Rs.4,00,000/- from the second respondent Bank in the year 2004. He has defaulted the repayment. This writ petition has been filed mainly with the prayer to issue a writ of mandamus commanding the first respondent to consider Ext.P4 representation and to issue appropriate direction to the second respondent to consider the request of the petitioner in accordance with the circulars of the Joint Registrar regarding interest. 2. I have heard the learned counsel appearing for the petitioner as also the learned standing counsel for respondents 2 and 3. 3. The learned standing counsel submitted that in terms of the provisions under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (for short `the Act') a notice has been issued to the petitioner as early as on 3.11.2006. Thereupon, notice under section 13(4) of the Act was issued on 18.4.2007 and later on 16.6.2007 a paper publication was effected. According to the learned standing counsel, even thereafter the petitioner did not effect any payment towards the loan. The learned counsel for the petitioner submitted that Ext.P2 would reveal that after WP(C).No.36958/2010 2 availing the loan in the year 2004 the petitioner has paid a total amount of Rs.1,90,000/- towards the said loan account. The learned standing counsel submitted that an amount of Rs.8,38, 023/- is outstanding towards the said loan account as on 16.12.2010. He further submitted that the petitioner is also liable to pay the interest accrued thereon subsequent to 16.12.2010. 4. Admittedly, the petitioner has availed a loan of Rs.4,00,000/- in the year 2004 and therefore, the petitioner is bound to discharge the liability arising out of the said loan transaction. To afford the petitioner a last opportunity to discharge the entire liability, it will only be appropriate for respondents 2 and 3 to keep in abeyance all coercive steps for a period of eight weeks. In the meanwhile, the petitioner shall pay an amount of Rs.2.5 lakhs towards the said loan account within a period of seven weeks. In case the petitioner pays the said amount within the above stipulated time, it will be open to the petitioner to file a representation to the second respondent seeking the benefit of the circulars referred to in the writ petition to get the amount of interest reduced and also seeking instalment facility. In case the petitioner remits the above mentioned amount within the stipulated time and makes a request for the aforesaid effect the same shall be WP(C).No.36958/2010 3 considered by the 2nd respondent. Till such consideration further coercive steps shall be kept in abeyance. It is made clear that in case the petitioner fails to comply with the above conditions, it will be open to the respondents to proceed with the steps already initiated for realisation of the amount. The writ petition is disposed of accordingly. Sd/- C.T.RAVIKUMAR Judge TKS // True copy // P.S. to Judge