IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC MONDAY, THE 17TH MARCH 2008 / 27TH PHALGUNA 1929 W.P(C).No. 37220 of 2007(E) --------------------------------- PETITIONER: -------------- 1. AYSHABI.P., AVVATHOTTIL HOUSE, PATHIMANGALAM, KUNNAMANGALAM, KOZHIKODE DISTRICT. 2. P.KHADER, POTTAMMAL HOUSE, PATHIMANGALAM, KUNNAMANGALAM, KOZHIKODE DISTRICT. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: ----------------- 1. THE MANAGER, STATE BANK OF TRAVANCORE, KALLAI BRANCH, KOZHIKODE. 2. THE AUTHORISED OFFICER/CHIEF MANAGER, STATE BANK OF TRAVANCORE, KALLAI BRANCH, KOZHIKODE. 3. THE NEW INDIA ASSURANCE COMPANY LIMITED, CHEROOTTY ROAD, KOZHIKODE. 4. THE CONSUMER DISPUTES REDRESSAL FORUM, KOZHIKODE. 5. THE STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY TO GOVERNMENT, THIRUVANANTHAPURAM. BY ADV. SRI.R.S. KALKURA, SC FOR SBT GOVT. PLEADER, SRI. I.V. PRAMOD THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/03/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. = = = = = = = = = = = = = = W.P.(C) No. 37220 OF 2007 - E = = = = = = = = = = = = = = Dated this the 17th day of March, 2008 J U D G M E N T The 1st petitioner is a surety and the 2nd petitioner is the principal debtor to a loan of Rs.2.75 lakhs availed of from the respondent bank on 2.11.1998, the repayment period of which expired in 2003. It is stated that right from the beginning default was committed and finally proceedings were initiated by the bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. 2. Petitioner submits that in the meantime the vehicle purchased utilising the loan, was stolen and a claim was made before the Insurance Company by Ext. P2. However, that was rejected by the Insurance Company by Ext. P4. According to the petitioner, a complaint filed before the Consumer Disputes Redressal Forum, Kozhikode as per Ext. P5 is pending consideration. W.P.(C) No. 37220 OF 2008 - 2 - 3. On the other hand, the bank would submit that on the initiation of the proceedings under the Act, they have completed all procedural formalities and the mortgaged property has been proclaimed for sale vide proceedings dated 19.12.2007. 4. Though the 1st petitioner would contend that in view of the pendency of the proceedings before the Consumer Disputes Redressal Forum, Kozhikode, as per Ext. P5, the bank shall not be permitted to proceed with the matter until the said Forum renders its decision on Ext. P5, I am not in a position to accept the contention of the petitioner. In the matter of repayment of the loan availed of from the bank, the bank cannot be asked to await for the decision of the Forum which is to pronounce on the correctness of the rejection of the insurance claim by the Insurance Company. When repayment has been defaulted, the bank is entitled to take steps for its recovery. In view of this, I do not think that this Court will be justified in directing the bank to await for the outcome of Ext. P5 and then to take steps for realising the money. 5. Irrespective of that, if the petitioners so intends, they may deposit 50% of the amount due to the bank within 2 weeks W.P.(C) No. 37220 OF 2008 - 3 - from today, in which case the bank will defer further proceedings pursuant to Ext. P8 sale notice. If the petitioners pays 50% as above, the petitioners will be permitted to pay the balance amount in 4 equal monthly instalments, the first of which will be payable on or before 15th April, 2008 and the subsequent instalments will be payable on or before the 15th of every succeeding month. In case the petitioners commit any default in payment of the amount as above, the bank will be free to continue the proceedings without any hindrance. 6. Petitioners submit that proceedings in Ext. P5 complaint before the Consumer Disputes Redressal Forum, Kozhikode, is inordinately delayed. Taking into account the submission as above I direct that the 4th respondent shall expedite the proceedings and all endeavour will be made to conclude the proceedings as expeditiously as possible. Writ petition is disposed of as above. ANTONY DOMINIC JUDGE jan/-