IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 11TH JULY 2011 / 20TH ASHADHA 1933 WP(C).No. 17705 of 2011(K) ---------------------------------------- PETITIONER(S): ------------------------- 1. M/S.S.B.CONSTRUCTIONS, A PARTNERSHIP FIRM, REP. BY ITS MANAGING PARTNER SRI.P.C.SCARIA, BINDU NIVAS, MALAPARAMBA, KOZHIKODE-673 009. 2. SRI.P.C.SCARIA, S/O.CHAKAPPAN, BINDU NIVAS, MALAPARAMBA, KOZHIKODE-673 009. 3. SRI.BINU SCARIA, S/O.P.C.SCARIA, BINDU NIVAS, MALAPARAMBA, KOZHIKODE-673 009. 4. SMT.KUNJAMMA SCARIA, W/O.P.C.SCARIA, BINDU NIVAS, MALAPARAMBA, KOZHIKODE-673 009. BY SRI.K.JAYAKUMAR, SENIOR ADVOCATE BY ADV. SRI.P.B.KRISHNAN SRI.P.B.SUBRAMANYAN RESPONDENT(S): --------------------------- 1. THE AUTHORISED OFFICER, FEDERAL BANK LTD., BRANCH PUTHIYARA, KOZHIKODE DISTRICT, PIN-673 004. 2. THE FEDERAL BANK LTD., REP. BY ITS CHIEF MANAGER, PUTHIYARA BRANCH, PUTHIYARA, KOZHIKODE-673 004. R1 & R2 BY SRI.K.K.CHANDRAN PILLAI, SENIOR ADVOCATE BY ADV. SRI.A.S.SAJUSH PAUL THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C)NO.17705/2011 APPENDIX PETITIONER'S EXHIBITS: P1 DATED 10/06/2011, COPY OF THE POSSESSION NOTICE ISSUED BY RESPONDENT NO.1. P2 DATED 05/02/2011, COPY OF THE TREASURY CHEQUE. P3 DATED 18/05/2011,COPY OF THE ORDER OF THE DRT, ERNAKULAM IN I.A.NO.1023 OF 2011 IN O.A.NO.394 OF 2010. P4(A) DATED 9/10/2010, COPY OF THE RECEIPT FOR PAYMENT OF RS.13,84,928/- P4(B) DATED 9/10/2010,COPY OF THE RECEIPT FOR PAYMENT OF RS.2,47,779/- RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts S. SIRI JAGAN, J. ------------------------------------------- W.P.(C) No.17705 OF 2011 ---------------------------------------------- Dated this the 11th day of July, 2011 JUDGMENT The petitioners are challenging proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act initiated by the respondents for recovery of loan amounts defaulted by the petitioners. According to the petitioners, the payments made by the petitioners have not been properly accounted for by the bank. They would submit that they have not been favoured with a statement of accounts also. They seek permission to pay off the amounts in instalments. 2. This is strongly opposed by the learned counsel for the bank. He submits that all amounts paid by the petitioners have been duly accounted for at the appropriate time and there is no mistake committed by the bank in respect of the same. According to him, the loan was taken for taking up certain works on contract and the petitioners are not any more doing any work W.P.(C)No.17705/11 2 as per the contract and therefore, there is no point in giving any further facility to the petitioners in the matter of repayment. 3. Having heard both sides, I am of opinion that the respondents can show some more leniency to the petitioners in the matter of payment of the amounts in instalments. Accordingly, the writ petition is disposed of with the following directions: The petitioners shall pay an amount of Rs.25 lakhs within six weeks from today. In the meanwhile, the bank shall issue a statement of accounts to the petitioners within three weeks. The petitioners may file their objections to the statement before the bank within another two weeks. Thereafter the bank shall consider objections and take a final decision as to the balance amounts due. This shall be completed within the six weeks period as directed above. The balance amount due shall be paid by the petitioners in 15 equal monthly instalments starting from 1.10.2011. Every subsequent instalment shall be paid on the first working day of every succeeding month. If the petitioners pay the initial amount and the instalments on due dates without default, further W.P.(C)No.17705/11 3 proceedings under the Act shall be kept in abeyance. However, if the petitioners commit default in payment of either the initial amount or any one of the subsequent instalments, it would be open to the respondents to continue proceedings as now initiated without having to issue any fresh notice or proceedings in that regard. S. SIRI JAGAN, JUDGE acd W.P.(C)No.17705/11 4