IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC FRIDAY, THE 29TH OCTOBER 2010 / 7TH KARTHIKA 1932 WP(C).No. 31979 of 2010(V) -------------------------- PETITIONER(S): -------------------- SAMRAT EXPORTERS & IMPORTERS, REP.BY ITS MANAGING PARTNER, A.M.MOIDU, AGED 55 YEARS, RESIDING AT KOLAYAKKAD, MANNAPRA.P.O., PALAKKAD DISTRICT. PIN-678 685. BY ADV. SRI.P.P.JOYI RESPONDENT(S): ---------------------- 1. THE STATE BANK OF INDIA, REP.BY ITS GENERAL MANAGER, STRESSED ASSETS RESOLUTION CENTRE, ERNAKULAM. 2. STATE BANK OF INDIA, REPRESENTED BY ITS CHIEF MANAGER (ADVANCES), COMMERCIAL BRANCH, EXPRESS HOUSE, KALOOR, COCHIN-682 017. SRI.P.V.SURENDRANATH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. ================ W.P.(C) NO. 31979 OF 2010 (V) ===================== Dated this the 29th day of October, 2010 J U D G M E N T Petitioner is a defaulter to the 1st respondent Bank. 2. For the realisation of its dues, Bank has already filed OA 122/04 before the Debts Recovery Tribunal, Ernakulam. When the matter was pending, Bank announced a One Time Settlement Scheme, the benefit of which was extended to the petitioner by Ext.P4. Ext.P4 contemplated payment of the amount mentioned therein in two instalments. The first instalment was payable on 31/7/2010, which the petitioner paid. The second instalment of Rs.16,15,000/- was payable on 30/9/2010. Admittedly, the amount was paid by the petitioner only on 14/10/2010. It is stated that along with the second instalment, an additional amount of Rs.10,000/- towards belated interest was also paid by the petitioner. 3. Though the Bank accepted the remittance, Bank has now issued Ext.P5 informing the petitioner that since payment was not made within the time stipulated by the Bank, the petitioner should make additional payment of Rs,2,70,000/- WPC No. 31979/10 :2 : before October, 2010. It is also informed that in the event of non payment, the petitioner will have to pay the entire amount due. It is challenging Ext.P5, the writ petition is filed. 4. Learned counsel contends that, the Bank having accepted the belated payment from the petitioner, ought to have settled the liability for the OTS amount itself. It is also his submission that, at best, the Bank could have demanded only interest for the belated payment and nothing more. 5. I have heard both sides. 6. In my view, though morally the petitioner may be right in saying that the Bank could not have demanded anything more than the overdue interest on the belated payment, still fact remains that OTS is a matter of consensus between the parties. Admittedly, the petitioner did not comply with his part of the obligation. Therefore, it being a matter of agreement between the parties, this Court will not be justified in sitting in judgment of the decision of the Bank and interfere with the demand made by the Bank for any additional amount and it is for the Bank to consider the request of the petitioner and take a decision in this matter. WPC No. 31979/10 :3 : 7. Therefore, I decline to interfere with Ext.P5, at the same time, I leave it open to the petitioner to make an appropriate application to the 1st respondent, in which event, the 1st respondent should consider as to whether the demand made in Ext.P5 could be reduced/waived. 8. In that view of the mater, I direct that the petitioner should make a representation to the 1st respondent within one week from today, in which event, the respondent will consider and reply to the petitioner within another one week. Depending on the reply so given, the petitioner will discharge the balance liability. In order to enable the petitioner to file a representation and the Bank to take a decision as directed, it is ordered that the last date specified for payment in Ext.P5 will stand extended till 22/11/2010. 9. Petitioner shall produce a copy of this judgment before the respondents for compliance. Writ petition is disposed of as above. ANTONY DOMINIC, JUDGE Rp