IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC THURSDAY, THE 30TH JULY 2009 / 8TH SRAVANA 1931 WP(C).No. 21489 of 2009(E) -------------------------- PETITIONER(S): ------------------ P.JOHNSON, S/O. PAKKIAM, AGED 57YEARS, KUSAVOORKONATHU PUTHEN VEEDU, PERUKAVU, VILAVOORKAL, NEYYATTINKARA, NOW RESIDING AT THANUJA MANDIRAM, CHOOZHATTUKOTTA, MALAYAM P.O., THIRUVANANTHAPURAM. BY ADV. SRI.G.P.SHINOD SRI.RAM MOHAN.G. RESPONDENT(S): ------------------- VILAPPIL SERVICE CO-OPERATIVE BANK LTD., NO. 2522, REPRESENTED BY ITS SECRETARY,PEYAD, THIRUVANANTHAPURAM. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. ================ W.P.(C) NO. 21489 OF 2009 (E) ===================== Dated this the 30th day of July, 2009 J U D G M E N T On 18/3/2000 petitioner had availed of a loan of Rs.90,000/- from the respondent. Default was committed and ARC 949/06 was filed for realizing Rs.2,05,457/- together with interest at the rate of 21%. Ext.P1 is the award that was passed in favour of the Bank enabling it to realise the amount due. Aggrieved by the award, petitioner filed Revision Petition No.78/07 before the Co-operative Tribunal. By Ext.P2 order dated 30th of August, 2008, the revision was disposed of reducing the interest to 13% on the principal amount of Rs.90,000/- from the date of suit till the date of realization. Petitioner was also allowed to pay the amount in instalments of Rs.12,000/-, with default clause enabling the Bank to realise the amount. It is challenging Exts.P1 and P2 the writ petition is filed. 2. The main contention raised is that the interest allowed in Exts.P1 and P2 is exorbitant. First of all, the loan was availed of for commercial purposes and the contract rate was 21%. Even if contract rate was awarded, there was nothing irregular about it. WPC 21489/09 :2 : Despite this, a reading of Ext.P2 shows that the Tribunal has allowed reduction of interest from the date of suit and the petitioner is now called upon only to pay interest at 13%. The award of interest of 13% in the circumstances cannot be said to be an arbitrary exercise warranting interference. Therefore, on merits, I do not see any substance in the contentions raised by the petitioner. 3. Counsel for the petitioner prays that he be allowed to pay the amount due under Ext.P2 order passed by the Tribunal in instalments. 4. I have considered the submissions and in the circumstances of the case, I direct that if the petitioner remits 1/4th of the amount within two weeks from today, he will be permitted to pay the balance amount due to the respondent Bank in six equal monthly instalments. It is directed that 1/4th amount as directed above shall be paid before 15th of August, 2009, and the subsequent instalments shall be paid on or before 15th of September, 2009 and the 15th of every succeeding month. It is clarified that in case default is committed, the respondents will be WPC 21489/09 :3 : free to continue the proceedings for recovery of the amount in one lump. Petitioner shall produce a copy of this judgment before the respondents for compliance. ANTONY DOMINIC, JUDGE Rp