IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN THURSDAY, THE 1ST SEPTEMBER 2011 / 10TH BHADRA 1933 WP(C).No. 23833 of 2011(D) -------------------------- PETITIONER: --------------- SASIKUMARAN NAIR K., S/O KUTTAN PILLAI “BHUVANASREE”, R.C.STREET, NEYYATTINKARA. BY ADV. SRI.M.SREEKUMAR RESPONDENT(S): --------------- 1. THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK LTD., REPRESENTED BY ITS GENERAL MANAGER, HEAD OFFICE, EAST FORT, THIRUVANANTHAPURAM, EAST FORT P.O., PIN 695 023. 2. MANAGER, KANJIRAMKULAM BRANCH, THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK LTD., KANJIRAMKULAM – 695 524. 3. HEADMASTER, GOVERNMENT HIGH SCHOOL, PARASSALA-695 502. 4. EXCISE INSPECTOR, EXCISE RANGE OFFICE, THIRUPURAM – 695 133. 5. DEPUTY REGISTRAR(ADMINISTRATION), OFFICE OF JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695 001. BY SHRI K.G.RADHAKRISHNAN (SC) FOR R1 & R2 GOVT.PLEADER SHRI HANI KUMAR FOR R4 & R5 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/09/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN W.P.(C)No.23833/11 PETITIONER'S EXTS: EXT.P1: COPY OF NOTICE NO.CSN/68/04-05 DT.26.7.11 ISSUED TO THE 3RD RESPONDENT. EXT.P2: COPY OF NOTICE NO.CSN/68/04-05 DT.26.7.11 ISSUED TO THE 4TH RESPONDENT. EXT.P3: COPY OF NOTICE NO.CSN/68/04-05 DT.26.7.11 ISSUED TO THE 5TH RESPONDENT. TRUE COPY P.A.TO JUDGE dsn P.N.RAVINDRAN, J. --------------------------- W.P.(C) No. 23833 OF 2011 -------------------------- Dated this the 1st day of September, 2011 J U D G M E N T The petitioner availed a loan from the Kanjiramkulam branch of the first respondent bank on 30.6.2004. Sri.R.Pradeep, Sri.Sabu R.Chandran and Sri.K.Gireeshkumar who are working in Government School, Parassala, Excise Range Office, Thirupuram and the Office of the Joint Registrar of Co- operative Societies, Thiruvananthapuram respectively are sureties to the said loan transaction. When the petitioner defaulted repayment of the loan, the first respondent took steps to attach the salary of the sureties by issuing Exts.P1 to P3 notices dated 26.7.2011 under section 37 of the Kerala Co- operative Societies Act. This writ petition is filed contending that if the salary of the sureties is attached they will be put to serious prejudice and misery. It is also stated that the default on part of the petitioner for repayment of the loan was not willful and that the petitioner is ready and willing to clear the entire dues in a short span of time if he is given instalment facility. This writ petition is filed challenging Exts.P1 to P3 notices and seeking a direction to respondents 1 and 2 to grant WPC No.23833/2011 2 instalment facility to the petitioner to pay the entire amount due. 2. When this writ petition came up for hearing today, Sri.K.G.Radhakrishnan, learned standing counsel appearing for respondents 1 and 2 submitted that if the petitioner will pay the balance amount due from him namely the sum of Rs.1,62,979/- with future interest on the principal sum of Rs.1,00,000/- in four or five instalments, the bank will not proceed with the recovery steps initiated against the sureties. The learned counsel appearing for the petitioner submitted that the petitioner may be granted five instalments to pay the entire arrears. The learned standing counsel for the bank also submitted that the a time settlement scheme is in force till 15.9.2011 and if the petitioner approaches the bank seeking the benefit of the one time settlement scheme and is prepared to discharge the loan in lump, the bank will extend to him the benefit of the one time settlement scheme. In the light of the said submissions, I dispose of the writ petition with the following directions: (i) In the event of the petitioner filing an appropriate petition before the first respondent bank seeking the benefit of Circular No.41 of 2011 dated 23.6.2011 and Circular No.62 of WPC No.23833/2011 3 2011 dated 12.8.2011 the bank shall consider the same and take an appropriate decision regarding the amount which the petitioner should pay under the said scheme within one week from the date of receipt of the representation. (ii) On the bank informing the petitioner in writing of the amount payable for one time settlement, the petitioner shall pay the amount demanded without protest on or before 15.9.2011. (iii) It will be open to the petitioner to pay the entire amount namely the sum of Rs.1,62,979/- demanded in the impugned notices with future interest at the agreed rates on the principal sum of Rs.1,00,000/- from 26.7.2011 onwards in five equal monthly instalments commencing from 1st October, 2011 and ending with 1st February, 2012. If the petitioner commits default in paying any two consecutive instalments it will be open to the respondents to proceed against him and the sureties to realise the amount due in lump. P.N.RAVINDRAN, (JUDGE) vps