IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 4TH NOVEMBER 2009 / 13TH KARTHIKA 1931 WP(C).No. 29069 of 2009(C) -------------------------------------- CMP.NO.2844/2009 OF C.J.M.,KOTTAYAM. .................... PETITIONER: ------------------- SABU K.HAMEED, AGED 30, S/O.LATE K.A.HAMEED, KALLUPURACKAL HOUSE, PARATHODU P.O., KANJIRAPPALLY, KOTTAYAM DISTRICT. BY ADV. MR.P.A.MOHAMMED SHAH. RESPONDENTS: ------------------------ 1. CHIEF MANAGER, STATE BANK OF TRAVANCORE, KANJIRAPPALLY BRANCH, KOTTAYAM DISTRICT. 2. REGIONAL MANAGER, STATE BANK OF TRAVANCORE, REGION II, ZONAL OFFICE, KOTTAYAM. R1 & R2 BY MR. R.S. KALKURA. S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04/11/2009,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.29069 OF 2009 ------------------------------ Dated this the 4th day of November, 2009 J U D G M E N T ---------------------- 1. Petitioner is aggrieved by proceedings initiated against him by the respondents, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Petitioner availed a housing loan from the 1st respondent Bank during the year 2006, to the tune of about Rs.14 lakhs. As per terms of the loan, the repayment has to be effected in 240 equal monthly installments of Rs.13,700/- each. According to the petitioner he had paid considerable amount to the loan account, but subsequently defaulted regular payments. When the Bank initiated steps for realisation, he had approached the Bank with Ext.P3 representation seeking “One Time Settlement”. But without taking a decision on the matter the Bank proceeded with steps under Section 14(1) of the SARFAESI Act and the CJM Court was approached. Therefore this writ petition is filed. 2. Heard standing counsel appearing for the respondents, who on the basis of instructions submitted that, the W.P.(C).29069/09-C 2 offer made in Ext.P3 for compromise settlement is not even covering the principal amount due, and therefore the Bank had not accepted such an offer. It is submitted that as on 1.12.2008 an amount of Rs.16,21,858/ is due along with future interest. It is further submitted that the petitioner can still approach the Bank with some firm offer regarding compromise settlement and on such event the Bank is prepared to consider the same. 3. Having considered submissions on both sides and the facts and circumstances of the case, I am of the opinion that the petitioner can be relegated to the respondent Bank for exploring possibilities of One Time Settlement/compromise settlement. 4. If the petitioner makes payment of an amount of Rs.1,75,000/- (Rupees One Lakh Seventy Five Thousand only) on or before 15.1.2010 and submits a representation to the 2nd respondent through the Branch Manager concerned, within one week thereafter, the same shall be considered and the petitioner shall be intimated about the net amount payable after considering waiver of interest/default interest and expenses to the possible extent. In case the settlement is arrived the petitioner shall be given reasonable installment facility to pay off the amount so settled. 5. In order to facilitate consideration of OTS, further W.P.(C).29069/09-C 3 coercive steps under the SARFAESI Act shall be kept in abeyance till a decision is taken and intimated to the petitioner as directed above, provided the petitioner makes payment of the initial amount as stipulated herein. Needless to say that if there is failure to comply with the conditions of the settlement if any arrived, the respondents will be free to proceed with further steps now initiated under the SARFAESI Act. C.K.ABDUL REHIM, JUDGE. okb