IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN MONDAY, THE 24TH NOVEMBER 2008 / 3RD AGRAHAYANA 1930 WP(C).No. 33851 of 2008(E) -------------------------- PETITIONER(S): --------------- SARASWATHY AMMA , AGED 62 YEARS D/O. PARUKUTTY AMMA,KODENKUTTYVILA VEEDU ALUMMOODU P.O.,MUKHATHALA (VIA) KOLLAM. BY ADV. SRI.BIMAL K.NATH SRI.S.JAMAL SRI.E.M.SUNIL KUMAR RESPONDENT(S): --------------- THE MANAGER CANARA BANK, THATTAMALA, KOLLAM. BY ADV.SRI.PAULY MATHEW MURICKAN, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/11/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: THOTTATHIL B.RADHAKRISHNAN, J. ------------------------------------------- W.P(C).No.33851 OF 2008 ------------------------------------------- Dated this the 24th day of November, 2008 JUDGMENT The petitioner is the mother-in-law of the debtor. Her daughter and son-in-law are abroad. The son-in-law had availed a loan from the respondent in connection with Cashew business. On default in repayment, that facility was recalled. Proceedings were initiated under the SARFAESI Act since the account was classified as an NPA. The petitioner's daughter made certain representations while in India. The petitioner contends that the distress action may be deferred granting certain instalments to pay off the outstandings. After the institution of the writ petition, a total amount of Rs.4.5 lakhs has been deposited, leaving the remaining outstandings to be roughly about Rs.3.5 lakhs. Learned counsel for the petitioner states that if Exts.P3 and P4 were considered, the loan should be covered giving One Time Settlement Scheme. In fact, OTS facility was extended to the transaction, but the benefit was not enjoyed and the facility lapsed. The bank then recalled that facility and has now moved WPC.33851/08 Page numbers for recovery of the loan. I am not impressed that this is a case where the bank should be compelled to stand by its OTS offer which was recalled more than one year ago on 10.9.2007 or direct it to suffer by charging interest only at PLR on the OTS amount. There are no circumstances in this case which should trigger consideration of any such representation. The request fails. However, the writ petition is ordered directing that if amounts at the rate of Rs.50,000/- per month is paid on or before the 28th of every month commencing from December, 2008, the distress action will stand suspended and ultimately dropped. In case of default in remitting any of the instalments as aforesaid, the benefit of this judgment shall stand recalled automatically and distress action shall follow. Sd/- THOTTATHIL B.RADHAKRISHNAN, Judge. kkb.