IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 2ND AUGUST 2011 / 11TH SRAVANA 1933 WP(C).No. 19278 of 2011(H) ------------------------------------------- PETITIONER(S): ----------------------- C.H. MUHAMMED KOYA MEMORIAL EDUCATION AND CHARITABLE TRUST, PARAKULAM, UMAYANALLO0R, KOLLM, REPRESENTED BY ITS CHAIRMAN, SRI.H. ABDUL KAREEM, S/O. HANEEFA KUNJU, FASEELA MANZIL, PARAKULAM, VADAKKUMTHALA, THAZHUTHALA, KOLLAM. BY ADV. SRI.VINOY VARGHESE KALLUMOOTTILL SMT.BIMALA BABY RESPONDENT(S): -------------------------- 1. THE MANAGER,FEDERAL BANK LIMITED, RAVI'S ARCAEDE, NEAR IRON BRIDGE, KOLLAM - 691 001. 2. THE AUTHORISED OFFICER, CHIEF MANAGER, FEDERAL BANK LIMITED, RAVI'S ARCAEDE, NEAR IRON BRIDGE, KOLLAM - 691 001 3. THE GENERAL MANAGER, THE FEDERAL BANK LIMITED, REGISTERED OFFICE, ALUVA. 4. JOHN GEORGE, ADVOCATE COMMISSIONER, KOLLAM (IN CRL.P NO. 2527/2010 OF THE CHIEF JUDICIAL MAGISTRATE COURT, KOLLAM) PIN - 691 001. R1 – R3 BY ADVS. SRI.GEORGE VARGHESE (MANACHIRACKEL), SMT.LIZA P.CHERIAN . THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 02/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: tss W.P.(C) NO.19278/2011 APPENDIX P1:- COPY OF THE STATEMENT OF ACCOUNT OF THE LOAN FOR THE PERIOD FROM 13.2.2006 TO 30.4.2007 AND FURTHER PERIOD FROM 12.5.2007 TO 31.1.2011 AND A SEPARATE CALCULATION OF INTEREST ON THE LOAN ACCOUNT. P2:- COPY OF THE JUDGMENT IN WRIT PETITION N O.16323/2010 AND CONNECTED CASE. P3:- COPY OF THE LETTER ISSUED BY THE 3RD RESPONDENT DTD. 16.6.2011. P4:- COPY OF THE APPLICATION FOR ONE TIME SETTLEMENT SUBMITTED BEFORE THE BANK. P5:- COPY OF THE APPLICATION SUBMITTED SECOND TIME WITH AN OFFER TO SETTLE THE LOAN ACCOUNT FOR AN AMOUNT OF RS. 1.65 CRORES. P6:- COPY OF THE LETTER REJECTING THE OFFER BY THE BANK. P7:- COPY OF THE THIRD APPLICATION SUBMITTED BEFORE THE BANK OFFICIALS UNDER ONE TIME SETTLEMENT OFFERING RS. 1.80 CRORES. P8:- COPY OF THE LETTER ISSUED BY THE COMMISSIONER APPOINTED IN CMP. 2527/2010 OF THE CHIEF JUDICIAL MAGISTRATE COURT, KOLLAM. RESPONDENT'S EXHIBITS NIL:- TRUE COPY P.A. TO JUDGE tss S. SIRI JAGAN, J. ------------------------------------------- W.P.(C) No. 19278 OF 2011 ---------------------------------------------- Dated this the 2nd day of August, 2011 JUDGMENT The petitioner challenges proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act initiated by respondents 1 to 3 fo recovery of loan amounts due from the petitioner to the bank. The petitioner does not dispute the liability to pay or the quantum. The petitioner only seeks facility to pay off the amounts in instalments and to avail of the benefit of One Time Settlement Scheme available. 2. This is opposed by the learned counsel for the bank. 3. Having considered the rival contentions in detail, I dispose of this writ petition as follows: It is admitted before me that Rs.10 lakhs as directed to be paid by order dated 15.7.2011 has already been paid. The petitioner shall pay the balance amount in fifteen equal monthly instalments starting from 1.9.2011. Every subsequent instalment shall be paid on the first working day of every succeeding month. W.P.(C)No.19278/11 2 In the meanwhile, competent among respondents 1 to 3 shall consider the claim of the petitioner for one time settlement and pass appropriate orders thereon, as expeditiously as possible, at any rate, within one month from the date of receipt of a copy of this judgment. If one time settlement facility is granted, the petitioner shall pay off the amounts as per the order on one time settlement, in which case the petitioner will not be entitled to avail of instalment facility. Otherwise, the petitioner shall continue to pay the amount in instalments as directed above. If the petitioner pays the instalments on due dates without default, further coercive proceedings under the Act shall be kept in abeyance. However, if the petitioner commits default in payment of any one instalment, it would be open to respondents 1 to 3 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.19278/11 3 W.P.(C)No.19278/11 4