IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 9TH JULY 2008 / 18TH ASHADHA 1930 WP(C).No. 18995 of 2008(J) -------------------------- PETITIONER: ------------ 1. DR.OOMMEN MATHEW, PROPRIETOR, AMBOLIL AYURVEDIC HOSPITAL AND RESEARCH CENTRE, E.P.V/278, MAROOR SOUTH, K.P.ROAD, PUTHUVAL, PATHANAPURAM P.O,M PATHANAMTHITTA-689 695. 2. LITTY EMIL GEORGE, AMBOLIL ARYA VAIDYASALA, E.P.V/278 MAROOR SOUTH, K.P.ROAD, PUTHUVAL, PATHANAPURAM P.O, PATHANAMTHITA-689 695. BY ADV. SRI.K.M.SATHYANATHA MENON SMT.SMITHA S.PARAKKAL RESPONDENTS: ------------------ 1. THE BRANCH MANAGER, STATE BANK OF INDIA, ELAMANNUR BRANCH, ADOOR, PATHANAMTHITTA DISTRICT. 2. THE REGIONAL MANAGER, STATE BANK OF INDIA, BEACH WARD ALAPPUZHA. BY SRI. P.V. SURENDRANATH -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S. SIRI JAGAN, J. ------------------------------------ W.P.(C)No.18995 OF 2008 ---------------------------------------- Dated this the 9th day of July, 2008 JUDGMENT The petitioners are defaulters of repayment of loan amounts due from them to the respondents. The petitioners have mortgaged three items of property with the bank as security for repayment of loan amounts. The petitioners now submit that if one property is released, the petitioners would be able to arrange private sale of the property, in which case from the sale proceeds thereof the entire balance amount due to the bank can be paid off. The petitioners therefore seek the following reliefs. “i) issue a writ of mandamus or any other appropriate writ, order or direction directing the respondents to consider Ext.P1 representation submitted by the petitioners; ii) issue a writ of mandamus or any other appropriate writ, order or direction directing the respondents to release the mortgaged property having an extent of 97 cents comprising in R.S.No.260/7-1 of Enadhimanagalam village to the petitioner; iii) issue a writ of mandamus or any other appropriate writ, order or direction directing the respondents to treat the collateral security of 54 cents of land comprising in Re.Sy.No.254/13-1 in Enadhimanagalam Village, as collateral security for the entire loan amount, as the said property is worth more than 3 crores”. W.P.(c)No.18995/08 2 2. Although the learned Standing Counsel for the bank opposes the prayer, on a little persuasion by this Court, he submits that if appropriate safeguards are made, the petitioners' prayer can be considered. After considering the arguments on both sides, this writ petition is disposed of with the following directions: on condition that the entire sale transaction shall be through the bank, the petitioners shall be permitted to sell the property mentioned by the petitioner by private sale. At every stage of the negotiation for sale, the bank shall be consulted and further proceedings shall only be as per permission obtained from the bank in writing. The sale shall only be after the bank agrees in writing to the consideration decided upon between the petitioners and the perspective purchaser. If the bank agrees in writing to the consideration and sale, the sale consideration shall be directly paid to the bank by the purchasers. The entire process shall be completed within a period of three months, failing which the petitioners would not be entitled to the benefits of this judgment and the property will revert back to the bank as security for the loan. If the W.P.(c)No.18995/08 3 petitioners do not abide by the above conditions also, the sale, if any, made would be subject to the mortgage rights of the bank. S. SIRI JAGAN, JUDGE Acd