IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN WEDNESDAY, THE 2ND NOVEMBER 2011 / 11TH KARTHIKA 1933 WA.No. 1647 of 2011() --------------------- AGAINST THE JUDGEMENT IN WPC.25158/2011 DT.17.10.2011 .................... APPELLANTS/ PETITIONERS ------------------------- 1. B.PRATHAPACHANDRAN, AGED 50 YEARS, S/O.BHANU PANICKER,'REVATHY',TC 48/242, AMBALATHARA ,POONTHURA POST, THIRUVANANTHAPURAM-26. 2. RAJI.V.S,W/O.PRATHAPACHANDRAN,'RAVETHY', TC 48/242, AMBALATHARA, POONTHURA POST, THIRUVANANTHAPURAM-26. BY ADV. SRI.K.B.PRADEEP RESPONDENT/ RESPONDENT: -------------------------- THE FEDERAL BANK LIMITED,PAPPANAMCODE BRANCH,MUSTAFFA TOWERS,PAPPANAMCODE POST, THIRUVANANTHAPURAM-695018,REPRESENTED BY ITS AUTHORISED OFFICER. ADV.SRI.GEORGE VARGHESE, SC FOR RESPONDENT THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 02/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR, Ag.C.J. & P.S.GOPINATHAN, J. ------------------------------------------ W.A.No.1647 OF 2011 ------------------------------------------- Dated this the 2nd day of November, 2011 J U D G M E N T ~~~~~~~~~~~ C.N.Ramachandran Nair, Ag.C.J. Heard the learned counsel appearing for the appellant and the learned standing counsel, Sri.George Varghese, appearing for the Federal Bank. Admittedly, the bank allowed amnesty benefit to the appellant for settling liability on a reduced amount of Rs.24 lakhs to be paid on 28.2.2011. Appellant remitted Rs.15 lakhs before the due date for payment under the Amnesty Scheme offered and requested the bank to release the title deed for one item of property for sale and for settlement of liability. According to the standing counsel, further 2 lakhs is paid much after the due date. The prayer now sought is for another three weeks time for payment of the balance with interest. 2. After hearing both the learned counsel for the appellants and the bank, we are of the view that the attitude W.A.No.1647/2011 2 adopted by the bank is not to be appreciated because, once substantial portion of liability is settled nothing prevented the bank from releasing the title deed of part of the property if it felt that the balance due could be easily recovered from the remaining property under mortgage. We do not think there is any need to adjudicate on this issue between the parties because, as against 24 lakhs, Rs.17 lakhs is paid and the balance Rs.7 lakhs together with interest for the period of default from 28.2.2011 only needs to be paid. The learned standing counsel for the bank rightly pointed out that time for payment is essence of settlement and if there is default, the bank is free to revoke the amnesty benefit granted. However, we feel, having regard to the circumstances stated above, the appellant can be extended the benefit granted by the bank under the Amnesty Scheme, if the balance is paid within one month together with interest for the delayed payment at the rate of 15% p.a. from 1.3.2011 till date of payment. The bank is directed to rework interest on Rs.9 lakhs from 1.3.2011 till the date of payment of Rs. 2 lakhs and thereafter, interest to be demanded is for Rs. 7 lakhs from that date till date of payment. However, if payment is not made W.A.No.1647/2011 3 within the time stated above, then it will be open to the bank to revoke the amnesty benefit granted and proceed for recovery. The bank should release the title deed within a week from making payment as above. On the above conditions, the appellant is free to enter into agreement for sale of any item of property and to secure the interest of the purchaser the appellant can even authorise payment by the purchaser to the bank and release the title deed by the Bank to the purchaser. The bank will abide by the agreement executed between appellant and the intending purchaser, if payment is made to the bank. Writ Appeal is disposed of as above. (C.N.RAMACHANDRAN NAIR, Acting Chief Justice) (P.S.GOPINATHAN, JUDGE) ps/4/11