IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN MONDAY, THE 6TH APRIL 2009 / 16TH CHAITHRA 1931 WP(C).No. 10724 of 2009(I) -------------------------- CMP.3327/2008 of C.J.M.,KOLLAM .................... PETITIONER(S): --------------- 1. MOHANAN K.C., S/O.CHELLAPPAN, AGED 49 YEARS, 'ROHINI', THURUTHIKKARA P.O. KUNNATHUR TALUK, KOLLAM DISTRICT. 2. CHANDRIKA.L., W/O.MOHANAN, AGED 49 YEARS, 'ROHINI', THURUTHIKKARA P.O. KUNNATHUR TALUK, KOLLAM DISTRICT. BY ADV. SRI.P.V.DILEEP RESPONDENT(S): --------------- 1. THE CHIEF MANAGER, AUTHORISED OFFICER, STATE BANK OF TRAVANCORE, REGION V, ZONAL OFFICE, THIRUVANANTHAPURAM DISTRICT. 2. THE MANAGER, STATE BANK OF TRAVANCORE, PUTHUR BRANCH, KOLLAM DISTRICT. BY ADV.SRI.R.S.KALKURA, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/04/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: THOTTATHIL B.RADHAKRISHNAN, J. ------------------------------------------- W.P(C).No.10724 OF 2009 ------------------------------------------- Dated this the 6th day of April, 2009 JUDGMENT 1.The petitioners availed a loan of Rs.4,00,000/- in 2004. According to them, the agreement was to repay the loan by remitting at the rate of Rs.200/- per day. The repayment period was five years which is due to end in four months from now. The petitioners did not repay promptly. The bank states that the petitioners are willful defaulters and that the allegation in the writ petition that the bakery is not functioning is false. It is also stated that the loan is supported by valuable security and that the loan was granted on an equated monthly repayment instalment schedule at the rate of Rs.9,004/- and not at the daily rate as alleged by the petitioners. It is pointed out on behalf of the bank that there is no scheme of daily repayment. 2. Taking the total accruals into consideration as also the applicability of the SARFAESI Act, there is no jurisdictional WPC.10724/09 Page numbers error or legal infirmity in the impugned proceedings. The petitioners are ordered to be dispossessed under Section 17 of that Act. The total outstandings, as of now, is more than Rs.5,21,000/-. Taking that into consideration, it is directed that if the petitioners pay an amount of Rs.2,00,000/- which is one half of the principal amount within a period of 10 days from now and continues to deposit amount at the rate of Rs.50,000/- per month, payable on or before the 25th of every month commencing from May, 2009 and thereby wipes off the total outstandings, the impugned distress action will be deferred and ultimately dropped. However, if there is default in remitting any of the amounts as aforesaid, the benefit of this judgment will stand recalled automatically and distress action will follow. The writ petition is ordered accordingly. Sd/- THOTTATHIL B.RADHAKRISHNAN, Judge. kkb.7/4.