IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 3RD DECEMBER 2009 / 12TH AGRAHAYANA 1931 WP(C).No. 32096 of 2009(F) ---------------------------------- CMP.1711/2009 of C.J.M.,MANJERI ........................ PETITIONER(S): -------------------- M.RAYIN, S/O. MUHAMMED, AGED 59 YEARS, MADATHILAKATH, CHENNARA AMSOM, VALAMARUTHOOR DESOM, P.O.KAVANCHERI, MALAPPURAM DISTRICT. BY ADV. MR.K.M.FIROZ RESPONDENT(S): ----------------------- 1. TIRUR URBAN CO-OPERATIVE BANK LTD. NO.F-1818, HEAD OFFICE, TIRUR-676101, BRANCH AT ALATHIYUR, REPRESENTED BY ITS ASSISTANT GENERAL MANAGER AND AUTHORISED OFFICER. 2. THE UNION OF INDIA, REPRESENTED BY THE SECRETARY (BANKING & INSURANCE), DEPARTMENT OF ECONOMIC AFFAIRS, MINISTRY OF FINANCE, PARLIAMENT STREET, NEW DELHI-110 001. R2 BY ADV. MR.T.P.M.IBRAHIM KHAN,ASST.SOLICITOR GENERAL OF INDIA R1 BY MR..DEVAPRASANTH.P.J. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sou. C.K. ABDUL REHIM, J. * * * * * * * * * * * * * * * * * W.P. (C) No. 32096 OF 2009 * * * * * * * * * * * * * * * * * * * * * Dated this the 3rd day of December, 2009 J U D G M E N T Challenge in this writ petition is against coercive steps initiated by the first respondent Bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002(SARFAESI Act). The loan in question was availed during the year 2003, to the tune of Rs.1,50,000/-. Consequent to default committed in repayment the Bank had initiated proceedings under SARFAESI Act. The Chief Judicial Magistrate was approached invoking Section 14 and the petitioner was threatened with eviction from the property. Eventhough it is contended that the property in question is agricultural land and it is not liable to be proceeded against under the provisions of SARFAESI Act, the petitioner is limiting his prayer to the extent of directing the first respondent Bank to consider settlement of the arrears under the provisions of Ext.P5 circular, which is issued by the Registrar of Co-operative Societies. According to the WPC.32096 of 2009 : 2 : petitioner Ext.P5 is applicable with respect to all Banks under the Co-operative sector, within the State. It is contended that if settlement is permitted under the provisions of Ext.P5 circular, the petitioner will be entitled for considerable reduction. 2. Learned standing counsel appearing for the first respondent had submitted that, the petitioner had not approached the Bank on any request for considering settlement invoking benefits under Ext.P5, within the periods stipulated therein. On the other hand, learned counsel for the petitioner points out that it was the duty of the Bank to intimate the defaulters regarding settlement contemplated under Ext.P5 and to make arrangements for granting reliefs thereon. 3. However, considering the entire facts and circumstances, I am of the opinion that the writ petition can be disposed of directing the respondents to consider settlement of the loan account under the provisions of Ext.P5 circular and also directing the petitioner to make payment of the amount so settled in terms of the circular without any default. 4. In the result, the first respondent is directed to consider settlement of the petitioner's loan account under Ext.P5 scheme(Circular No.1/2009 of the Registrar of Co- WPC.32096 of 2009 : 3 : operative Societies, dt.8.1.2009) and to inform the petitioner about the decision thereof, at the earliest, at any rate within a period of two weeks from the date receipt of a copy of this judgment. The petitioner is directed to pay the entire liability under such settlement, as per the terms to be intimated by the Bank, without any default. 5. In order to facilitate the first respondent Bank to consider 'One Time Settlement' and to inform the decision to the petitioner, coercive steps now initiated under the SARFAESI Act is directed to be kept in abeyance, till the respondent Bank takes a decision as directed above and inform the petitioner about the same. 6. It is made clear that if the petitioner commits any default in complying with the terms of the settlement, the first respondent will be free to proceed with further steps under the SARFAESI Act and on such event the petitioner will be precluded from raising any subsequent challenge. ( C.K. ABDUL REHIM, JUDGE) jma