IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 6TH OCTOBER 2009 / 14TH ASWINA 1931 WP(C).No. 27083 of 2009(E) -------------------------- PETITIONER(S): --------------- M.A.HAMEED, S/O. ABDUL KHADER, POSOT, NEAR POSOT JUMA MASJID, MANJESHWAR P.O., KASARAGOD DISTRICT. BY ADV. SRI.T.MADHU RESPONDENT(S): --------------- 1. THE FEDERAL BANK LTD., REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, OFFICE OF THEFEDERAL BANK LTD., P.B.NO.103, FEDERAL TOWERS, ALUVA, ERNAKULAM DISTRICT. 2. THE BRANCH MANAGER, FEDERAL BANK LTD., MANAGALORE BRANCH, MANGALORE, SOUTH CANARA DIST., KARNATAKA STATE. 3. THE AUTHORIZED OFFICER, FEDERAL BANK LTD., OFFICE OF THE FEDERAL BANK LTD., P.B.NO.103, FEDERAL TOWERS, ALUVA, ERNAKULAM DISTRICT. ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL), S.C. FOR R1-3 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).27083/09 APPENDIX PETITIONER'S EXHIBITS:- EXT.P1:- COPY OF THE JUDGMENT AND DECREE DT.17.10.06 IN O.S.NO:46/04 ON THE FILE OF THE SUB COURT, KASARAGOD. EXT.P2:- COPY OF THE NOTICE DT.17.10.09 ISSUED BY R3 EXT.P3:- COPY OF THE REPLY SUBMITTED BEFORE THE R2. RESPONDENT'S EXHIBITS:- NIL okb //True Copy// P.A. to Judge C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.27083 OF 2009 ------------------------------ Dated this the 6th day of October, 2009 J U D G M E N T ---------------------- 1. The petitioner's wife had availed a loan to the tune of Rs.5 lakhs from the 2nd respondent Bank during the year 2000, for constructing a residential house. Petitioner is the guarantor to the loan transaction. Consequent to default in repayment the respondent Bank filed a civil suit and obtained a decree from the Sub Court, Kasargod in O.S.46/04. On the basis of the decree the Bank had now approached the Debt Recovery Tribunal for obtaining recovery certificate and the matter is pending disposal before that Tribunal. Complaint of the petitioner is that in the meantime the proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated against immovable properties belonging to the petitioner which is mortgaged for securing the loan. According to the petitioner he had submitted Ext.P3 representation to the respondent Bank expressing his willingness to pay off the liability within a reasonable time. In Ext.P3 the petitioner had requested the Bank to consider “One Time Settlement” on waiver of interest and penal interest. It is stated therein that the petitioner is W.P.(C).27083/09-E 2 ready to make payment of an amount of Rs.2 lakh immediately and the Bank is requested to permit installment facility for repayment of the balance amount. All further proceedings pursuant to notice issued under Section 13(2) of the Act (Ext.P2) was sought to be kept in abeyance. 2. Learned standing counsel for respondents 1 to 3, on the basis of instructions submitted that, the amount due as on 17.8.2009 is Rs.15,21,310/- and the present arrears may be around Rs.16 lakhs. It is further submitted that Ext.P3 representation has not so far been received at the Bank and there is no “One Time Settlement Scheme” prevailing at present. It is further submitted that the possession with respect to the secured assets had been illegally transferred by the petitioner in violation of the terms of the loan agreement. Therefore the Bank is not favouring in permitting the petitioner to make payment of the amount in installments. 3. Having considered rival contentions and facts and circumstances of the case I am of the opinion that some indulgence can be shown for permitting the petitioner to pay off the entire liability within a reasonable time in installments. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.2,00,000/- (Rupees Two lakhs only) on or before 20.10.2009 and a further W.P.(C).27083/09-E 3 sum of Rs.2,00,000/- (Rupees Two lakhs only) on or before 15.11.2009. The petitioner will also produce a copy of Ext.P3 representation before the 2nd respondent. The respondent Bank is directed to keep in abeyance further proceedings till such time. If the amount of Rs.4 lakhs is paid as directed above, the Bank will consider the request of the petitioner to have waiver of interest or penal interest, to the possible extent. Further, the Bank will furnish a balance statement after crediting all payments and after crediting waiver of interest, if any allowed. The petitioner shall continue to pay the balance outstanding as per the statement in 5 equal monthly installments starting from 15.12.2009 and on or before 15th day of every succeeding months. 4. It is made clear that on the event of default in payment of any of the installments, the respondents will be at liberty to take further steps pursuant to the notice already issued and on such event the petitioner will be precluded from raising any further challenge against the proceedings before this court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb