IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 28TH JULY 2010 / 6TH SRAVANA 1932 WP(C).No. 3890 of 2010(I) ------------------------- PETITIONER: --------------- M. MUHAMMADALI, KUYILTHODUKAYIL HOUSE, PATHIMANGALAM, P.O. KUNNAMANGALAM, KOZHIKODE - 673571 BY ADV. SRI.O.D.SIVADAS RESPONDENTS --------------- 1. THE AUTHORISED OFFICER, (CHIEF MANAGER), THE FEDERAL BANK LTD, REGIONAL OFFICE, KOZHIKODE. 2. THE BRANCH MANAGER, THE FEDERAL BANK LTD, KODUVALLY BRANCH, KOZHIKODE DISTRICT. 3. THE RESERVE BANK OF INDIA, REPRESENTED BY DEPUTY MANAGER,BAKERY JUNCTION, THIRUVANANTHAPURAM. R2 BY ADV. SRI.MOHAN JACOB GEORGE BY ADV. SMT.P.V.PARVATHI BY ADV. SMT.REENA THOMAS BY ADV. SRI.L.RAM MOHAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 3890 OF 2010 ......................................................................... Dated this the 28th July, 2010 J U D G M E N T The petitioner had availed a cash credit facility from the respondent Bank. Since repayment was not effected on time, the Bank proceeded with further steps under the SARFAESI Act, which is sought to be intercepted in this Writ Petition. 2. The learned Counsel for the petitioner submits that the petitioner is entitled to get the benefit of 'OTS' by virtue of the circulars issued by the Reserve Bank of India from time to time and also in view of the mandate given by the Apex Court in Central Bank of India vs. Raveendra (2002 (1) KLT 743). 3. The learned Counsel for the respondent Bank with reference to the contents of the statement submits that the petitioner is a chronic defaulter right from the beginning; huge amounts are liable to be repaid by the petitioner and further that no efforts are seen taken by the petitioner to clear at least a portion of the amount . It is also brought to the notice of this Court that there is no scheme of 'OTS' as on date ; W.P.(C) No. 3890 OF 2010 2 notwithstanding which, if any application is filed by the petitioner pointing out the figure for which he is ready and willing to clear the liability under a 'Compromise Settlement Scheme', the same will be considered and appropriate orders will be passed, extending permissible extent of concessions, if any, submits the learned Counsel. In the above circumstance, the Writ Petition is disposed of directing the petitioner to satisfy a sum of Rs. 'Two lakhs' and to move the respondent Bank by filing an application in this regard within 'three weeks', on which event, the same shall be considered and appropriate orders shall be passed as expeditiously as possible at any rate within one month thereafter. The liability of the petitioner to satisfy the balance amount will be subject to the orders to be passed by the Bank as above. P.R. RAMACHANDRA MENON, JUDGE. lk