IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN THURSDAY, THE 29TH MAY 2008 / 8TH JYAISHTA 1930 WP(C).No. 16010 of 2008(E) --------------------------------------- PETITIONER: ------------------- G. INDIRAVATHY, W/O.LATE SUGATHAN, KANNIMAL, MUNDAKKAL EAST, KOLLAM. BY ADV. SRI. RAJA VIJAYARAGHAVAN, ADV. SRI.R.RENJITH. RESPONDENTS: ------------------------ 1. KOLLAM DISTRICT CO-OPERATIVE BANK LTD., KOLLAM, REPRESENTED BY ITS GENERAL MANAGER. 2. THE AUTHORIZED OFFICER (DEPUTY GENERAL MANAGER), KOLLAM DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, KOLLAM. 3. THE VILLAGE OFFICER, MUNDACKAL VILLAGE, UDAYAMARTHANDAPURAM CHERI, KOLLAM P.O. R1 BY ADV. SRI. B. VINOD, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/05/2008,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Thottathil B. Radhakrishnan, J. ================================== W.P.(C)No.16010 of 2008 ================================== Dated this the 29th day of May, 2008. JUDGMENT Learned senior Government Pleader takes notice for the third respondent. Standing counsel Sri.B.Vinod takes notice for respondents 1 and 2. 2. Petitioner offered a property as a collateral security for a cash credit facility availed by her son in 2003 for business purpose in P.V.C. pipes. That has ultimately resulted in the provisions of SARFAESI Act being invoked on the ground of default. Even if the petitioner is entitled to any benefit by way of reduction of interest etc., the principal amount has to be paid. The demand, as of now, is for Rs.5,00,000/-, which is the principal amount that was availed and for interest accrued thereon which works to Rs.2,54,507/- as on 8-10-2007, the date of Ext.P3. WPC16010/2008 -:2:- It was thereafter that Ext.P4 was issued on 24-4- 2008 taking possession of the property. Under such circumstances, it is impermissible to continue to avoid making any payments merely because she has made a representation in the form of Ext.P5. 3. Having regard to what is aforesaid, if the petitioner deposits an amount of Rs.5,00,000/- which represents the principal amount in two instalments, payable on or before the 20th of June and 15th of July, 2008, the bank will consider Ext.P5 representation and do the needful as is permissible and available under law. If the petitioner fails to deposit any of the instalments as aforesaid, the benefit of this judgment will stand recalled automatically and the respondents will be at liberty to forthwith proceed with distress action. It is also clarified that this judgment will not stand in the way of the petitioner seeking any ameliorative benefits which WPC16010/2008 -:3:- the bank may extend on the basis of Ext.P5. If deposits as aforesaid are made, further distress action will be governed by the decision that the bank may take on Ext.P5. Writ petition is disposed of in the above terms. Thottathil B.Radhakrishnan, Judge. sl/2/6/08