IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 23RD FEBRUARY 2010 / 4TH PHALGUNA 1931 WP(C).No. 5487 of 2010(I) ------------------------- PETITIONER: ---------------- CHERIAN MATHEW,MATTATHIL,VEMPALLY.PO, KURAVILANGAD,KOTTAYAM. BY ADV. SRI.V.G.ARUN SRI.T.R.HARIKUMAR RESPONDENTS: --------------- 1. KERALA STATE CO-OPERATIVE BANK LTD, ERNAKULAM REGIONAL OFFICE,DORAISWAMY IYER ROAD, KOCHI-682 035.REPRESENTED BY ITS REGIONAL MANAGER. 2. AUTHORIZED OFFICER/DEPUTY GENERAL MANAGER,KERALA STATE CO-OPERATIVE BANK LTD, ERNAKULAM REGIONAL OFFICE,DORAISWAMY IYER ROAD, KOCHI-682 035. ADV. SRI.NAGARAJ NARAYANAN,SC,K.S.CO-OP BANK FOR R1 & 2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/02/2010, ALONG WITH W.P.(C) No. 5453 of 2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING. P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 5453 & 5487 OF 2010 ......................................................................... Dated this the 23rd February, 2010 J U D G M E N T The petitioners are challenging the steps taken by the respondents as borne by Ext.P4, invoking the machinery under the SARFAESI Act. The grievance mainly projected in the Writ Petition is that though the petitioners have already approached the appropriate authority for extending the benefit of waiver of the loan amount under the Debt Relief Scheme stated as available, the respondents are proceeding with coercive steps without any regard to the pendency of said proceedings.. 2. The learned Counsel for the petitioners submits that petitioners are ready and willing to clear a portion of the liability forthwith and that the balance amount might be permitted to be cleared in a phased manner, simultaneously enabling the petitioners to have the benefit of the Debt Relief Scheme, if any available. W.P.(C) Nos. 5453 & 5487 OF 2010 2 3. The learned Counsel for the respondents submits that as on date a sum of Rs. Fifteen lakhs (each in both the Writ Petitions) is due to be cleared by the petitioners for wiping out the entire liability. It is also stated that the idea and understanding of the petitioners about the ‘OTS’ is wrong and unfounded and that the scheme only enables the persons who are desirous of closing the loan, permitting them to clear the entire liability on or before 28th February, on which event the penal interest will be waived and only the balance will be realized. 4. Taking note of the rival submissions and also the assurance placed before this Court through the Counsel, this Court permits the petitioners to clear the entire outstanding liability by way of reasonable installments. The coercive steps stated as being pursued against the petitioners shall be kept in abeyance on condition that the petitioners deposit a sum of Rs.2.5 lakhs within ten days and another sum of Rs.2.5 lakhs within one month from today. The balance shall be cleared by way of five equal monthly installments, the first of which shall be W.P.(C) Nos. 5453 & 5487 OF 2010 3 effected on or before 10.04.2010, to be followed by similar installments to be effected on or before the 10th of the succeeding months. It is made clear that if any default is committed in satisfying the liability as above, the respondents will be at liberty to proceed with further steps for realization of the entire amount in a lump sum from the stage where it stands now. It is made clear that the petitioners are at liberty to pursue Ext.P3 application, which is stated as pending before the concerned authority for waiver of the loan amount and on getting favourable orders, the same could be brought to the notice of the respondents, who shall take further steps, in accordance with law to give effect to the same. The Writ Petitions are disposed of as above P.R. RAMACHANDRA MENON, JUDGE. lk