IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 25TH JUNE 2010 / 4TH ASHADHA 1932 WP(C).No. 18966 of 2010(U) ------------------------------------- PETITIONER(S): ------------------------- M.G.GIRIJAN, SON OF GOPI, AGED 54 YEARS, SPICE INDIA, MULLUTHAZHE HOUSE, ERATTAYAR, UDUMBANCHOLA TALUK, IDUKKI DISTRICT. BY ADV. SRI.A.C.DEVASIA RESPONDENT(S): ---------------------- 1. STATE BANK OF INDIA, REPRESENTED BY ITS BRANCH MANAGER BRANCH OFICE AT KATTAPPANA, KATTAPPANA P.O., IDUKKI. 2. THE REGIONAL MANAGER, STATE BANK OF INDIA, REGIONAL BUSINESS OFFICE, THIRUNAKKARA, KOTTAYAM. R1 & R2 BY ADV. SRI.K.K.CHANDRAN PILLAI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J -------------------------------------------- WP(C) NO. 18966 OF 2010 -------------------------------------------- Dated this the 25th day of June, 2010 JUDGMENT The petitioner had availed a loan of Rs.14 lakhs from the 1st respondent Bank in the year 2003 in connection with the business, creating security interest over the property in question. But because of some unforeseen circumstances, the repayments were defaulted; under which circumstance, the account was declared as 'NPA' and the Bank proceeded with steps under the SARFAESI Act which is under challenge. 2. The learned counsel appearing for the petitioner submits that, the limited prayer now pressed before this Court is only to have the benefit of 'OTS' and some other concessions/allowances stating that the petitioner is ready and willing to clear the entire liability, once the amount liable to be satisfied by the petitioner is let known to him, giving such concessions/allowances. The learned counsel also submits that, the petitioner, to prove the bonafides, is ready and willing to deposit Rs.14 lakhs tomorrow. 3. The learned standing counsel for the Bank submits on instructions that, as on date, no 'OTS' is prevailing in the Bank, with regard to the 'nature of the account' of the petitioner. It is also submitted by the learned counsel that, if the petitioner comes within the purview of any of 2 WP(C) No. 18966/2010 the existing schemes, the matter will be considered and eligible benefit will be extended to the petitioner. The learned counsel further submits that the benefit of 'Compromise Settlement Scheme' is very much available and the application submitted by the petitioner before the 1st respondent will be forwarded to the 2nd respondent and the same will be caused to be considered to extend benefits to the eligible extent, to the petitioner as well. 4. In the above circumstance, the petitioner is directed to deposit a sum of Rs.14 lakhs in respect of the loan account on or before 28.06.2010, simultaneously submitting an application before the 1st respondent for extending the benefit of 'CSS' or such other concessions/allowances, if any. On submitting the application as above, the same shall be forwarded by the 1st respondent to the 2nd respondent, with necessary recommendations within one week thereafter. The application as above shall be considered by the 2nd respondent and appropriate orders shall be passed so as to extend eligible benefit/ concessions/allowances to the petitioner as expeditiously as possible, at any rate, within two weeks thereafter. On communicating the outcome to the petitioner, the balance amount due to be satisfied by the petitioner shall be cleared within one week thereafter. Subject to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance. It is made clear that, if any default is committed by the petitioner 3 WP(C) No. 18966/2010 in satisfying the liability as above, the respondents will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum. The Writ Petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE dnc