IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 17TH JULY 2008 / 26TH ASHADHA 1930 WP(C).No. 16755 of 2008(T) -------------------------- PETITIONER: PETITIONER ------------------------------- M/S. DALE VIEW CHARITABLE SOCIETY, REG. NO. 96/78, PUNNALAL.P.O, VIA POOVACHAL, THIRUVANANTHAPURAM. REP. BY ITS DIRETIOR CHRISTUDAS. BY ADV. SRI.D.KISHORE SMT.MEERA GOPINATH RESPONDENTS: RESPONDENTS ------------------------------------- 1. CENTRAL BANK OF INDIA, REP. BY ITS REGIONAL MANAGER, REGIONAL OFFICE, P.B. NO.98, GOPAL BUILDINGS, THYVILA ROAD, THIRUVANANTHAURAM-01. 2. THE SENIOR MANAGER, CENTRAL BANK OF INDIA, PEROORKADA BRANCH, AMBALAMUKKU, THIRUVANANTHAPURAM-05. BY ADV. SRI.DEVAN RAMACHANDRAN FOR R1 SRI.K.M.ANEESH FOR R1 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 17/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 16755 of 2008 EXT.P1: COPY OF THE RELEVANT EXTRACT OF MEMORANDUM OF ASSOCIATION OF THE PETIITONER SOCIETY. EXT.P2: COPY OF THE NOTICE DATED 4.12.2006 ISSUED BY THE 1ST RESPONDENT. EXT.P3: COPY OF THE COMMUNICATION DTD 5.12.2006 SUBMITTED BEFORE R2. EXT.P4: COPY OF THE LETTER DATED 22.12.2006 SUBMITTED BEFORE THE 2ND RESPONDENT. EXT.P5: COPY OF THE COMMUNICATION DATED 27.12.2006 ISSUED BY THE 1ST RESPONDENT. EXT.P6: COPY OF THE NOTICE DATED 19.3.2007 ISSUED BY 1ST RESPONDENT. EXT.P7: COPY OF THE REQUEST DATED 26.10.2007 SUBMITTED BEFORE THE CHAIRMAN OF 1ST RESPONDENT BANK. EXT.P8: COPY OF THE REQUEST DATED 31.1.2008 SUBMITTED BEFORE THE CHAIRMAN OF 1ST RESPONDENT BANK. EXT.P9: COPIES OF THE RECEIPTS EVIDENCING THE PAYMENT OF RS.8,00,060/-. EXT.P10: COPY OF THE STATEMENT ISSUED BY THE RESPONDENTS. EXT.P11: COPY OF THE NOTICE DATED 31.5.2008 ISSUED BY THE ADVOCATE COMMISSIONER. EXT.P12: COPY OF THE STATEMENT OF ACCOUNTS FROM 11.6.2008 TO 2.7.2008 OF THE BANK. EXT.P13: COPY OF THE NOTICE DATED 24.6.2008 ISSUED BY THE 1ST RESPONDENT. EXT.P14: COPY OF THE REPLY SUBMITTED BY THE PETITIONER TO EXHIBIT P13. TRUE COPY PA TO JUDGE. S. SIRI JAGAN, J. ------------------------------------ W.P.(C)No.16755 OF 2008 ---------------------------------------- Dated this the 17th day of July, 2008 JUDGMENT The petitioner challenges proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002. The petitioner submits that they are prepared to pay the entire defaulted instalments with interest and costs and they are prepared to undertake to pay the future instalments as per the loan agreement without default on the due dates. 2. This is stoutly opposed by the learned Standing Counsel for the respondents. He would point out that once account is declared as NPA, the entire amount becomes due as a whole and the bank cannot permit the petitioner to pay the instalments as per original loan agreement, by regularising the account on payment of defaulted instalments. 3. I have considered the rival contentions in detail. At the time of admission, I had directed the petitioner to pay an amount of Rs.25 lakhs within one month. The petitioner has W.P.(c)No.16755/08 2 promptly paid the same. In the above circumstances, I am inclined to direct the respondents to grant some indulgence to the petitioner in the matter of regularisation of their loan account and payment of future instalments as per the loan agreement. Accordingly, this writ petition is disposed of with the following directions. If the petitioner pays the balance amounts, if any due after adjusting the Rs.25 lakhs for paying off the defaulted instalments with interest and costs within one month, the respondents shall regulrise the loan accounts of the petitioner. The petitioner shall thereafter pay the future instalments as per the loan agreement on the due dates mentioned in the loan agreement without fail. If the petitioner complies with the above direction, further proceedings shall be kept in abeyance. However, if the petitioner fails to pay the amount, if any, required to regularise the loan account or any of the future instalments on the due date, it would be open to the respondents to continue proceedings as now initiated without having to issue any fresh notice or proceedings in that regard. I further make it clear that if the Rs.25 lakhs paid by the petitioner is more than the amounts required to regularise the W.P.(c)No.16755/08 3 loan account as directed above, the balance shall be adjusted against the future instalments. S. SIRI JAGAN, JUDGE Acd