IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 18TH FEBRUARY 2010 / 29TH MAGHA 1931 WP(C).No. 30356 of 2009(L) -------------------------- PETITIONER(S): --------------- KOLIKKAL GRANITE INDUSTRIES, REP. BY PARTNER, P.P.MOHAMMED ABDUL RAHIMAN, ARIAMKULAM, KATTIPPARA P.O., THAMARASSERY, KOZHIKODE DISTRICT. BY ADV. SRI.T.V.GEORGE RESPONDENT(S): --------------- 1. THE BRANCH MANAGER, SME BRANCH, CANARA BANK, JAIL ROAD, PUTHIYARA, KOZHIKODE DISTRICT. 2. AUTHORIZED OFFICER, SME BRANCH, CANARA BANK, JAIL ROAD, PUTHIYARA, KOZHIKODE DISTRICT. 3. THE DEPUTY GENERAL MANAGER, CANARA BANK, CANARA BANK CIRCLE OFFICE, CHELAPPURAM, KOZHIKODE. ADV. SRI.P.GOPINATH MENON, SC, CANARA BANK FOR R1 TO 3 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/02/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R RAMACHANDRA MENON, J. ------------------------- W.P (C) No.30356 of 2009 -------------------------- Dated this the 18th February, 2010 J U D G M E N T The petitioner has approached this Court mainly seeking for issuance of a writ of mandamus to direct the 3rd respondent to consider and pass appropriate orders on Ext.P3 representation requesting for the benefit of One Time Settlement Scheme, within a specified time. 2. Respondents 1 to 3 have filed a statement dated 4.11.2009 stating that even though the Bank was prepared to extend the benefit to the permissible limit, the amount offered by the petitioner was very low and not acceptable to the Bank. It is stated that the respondents had instructed the petitioner to improve their offer as per Annexure-1 letter dated 5.10.2009, but no competitive proposal has been submitted from the part of the petitioner. It is also stated that the outstanding liability as on the date of statement was around Rs.48 lakhs. 3. Pursuant to the interim order passed by this Court, a total sum of Rs.7 lakhs has already been paid by the petitioner, submits the learned counsel. This Court W.P (C) No.30356 of 2009 2 also directed the Bank to file an additional affidavit as to the actual facts and figures, pursuant to which, the affidavit dated 17.2.2010 has been filed, also producing Annexure R2 (a) letter dated 19.01.2010 issued by the Bank to the petitioner. With reference to the contents of the said affidavit, the learned counsel for the respondent Bank submits that the amount of Rs.7 lakhs already paid by the petitioner has been duly credited and the balance amount was nearly Rs.45.02 lakhs. It is also stated in paragraph 4 of the said affidavit that the Bank is ready and willing to settle the accounts on accepting a sum of Rs.42.19 lakhs in full and final settlement of the loan accounts. 4. The learned counsel for the petitioner submits that the offer now made by the Bank is not in confirmity with the actual outstanding. But this Court does not find any force in the said submission and no writ of mandamus can be issued with regard to the vested rights and interests of the parties, more so, when the amount was borrowed under a contract. 5. The learned counsel for the respondent Bank submits that the above amount of Rs.42.19 lakhs is to be satisfied by the petitioner on before the 31st March, 2010. W.P (C) No.30356 of 2009 3 However, considering the entire aspects involved, this Court find it fit and proper that the loan account could be settled on payment of Rs.42.19 lakhs in full and final settlement of the loan accounts . The petitioner is directed to pay a sum of Rs.10 lakhs within one month from the date of receipt of a copy of this judgment and the balance amount shall be cleared by way of 'four' equal monthly instalments, the first of which shall be effected on or before 15.4.2010, to be followed by the subsequent instalments to be effected on or before the 15th of the succeeding months. 6. Subject to the above, all further coercive steps pursuant to Ext.P4 shall be kept in abeyance. It is also made clear that, if any default is committed by the petitioner in satisfying the amount as above, the respondents will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum. Writ Petition is disposed of, as above. P.R RAMACHANDRA MENON JUDGE ma W.P (C) No.30356 of 2009 4 W.P (C) No.30356 of 2009 5