IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 2ND JULY 2008 / 11TH ASHADHA 1930 WP(C).No. 18815 of 2008(M) -------------------------- PETITIONER: ------------ D.SASIDHARAN, S/O.DAMODARAN, ALAYATHU HOUSE, MANAKKAD VILLAGE, THODUPUZHA TALUK, IDUKKI DISTRICT. BY ADV. SRI.CHITTOOR RAJAMANNAR SRI.DILEEP CHITTOOR RESPONDENTS: ------------- 1. CANARA BANK, THODUPUZHA BRANCH REPRESENTED BY ITS CHIEF MANAGER, THODUPUZHA, IDUKKI DISTRICT. 2. CANARA BANK SECURITY & ENFORCEMENT CELL, REGIONAL OFFICE, ERNAKULAM. 3. THE UNION OF INDIA REPRESENTED BY THE SECRETARY, DEPARTMENT OF FINANCIAL SERVICES, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI. BY ADV. SRI.PAULY MATHEW MURICKEN FOR R1 & 2 SHRI.PARAMESHWARAN NAIR, A.S.G. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S.SIRI JAGAN, J. ================== W.P.(C).No.18815 of 2008 ================== Dated this the 2nd day of July, 2008 J U D G M E N T The petitioner has two accounts with the 1st respondent bank. One is an agricultural loan account and the other is an overdraft account. The petitioner defaulted repayment of both. The bank has initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, for coercive recovery, which is under challenge in this writ petition. However, the petitioner does not dispute the liability to pay or the quantum. His contentions are two fold. First is that as far as the agricultural loan is concerned, he is entitled to the benefits of Ext.P2 scheme, as per which, he is entitled to waiver of 25 per cent of the loan amount and the balance has to be paid in three instalments, the first instalment of which has to be paid only by the 30th of September, 2008. As far as the over draft account is concerned, he seeks a direction to respondents 1 and 2 to permit him to pay off the amounts in instalments of Rs.25,000/- bi-monthly. w.p.c.18815/08 2 2. This is opposed by the standing counsel for the Bank. According to him, for availing of the benefits of Ext.P2 scheme, the petitioner has to comply with the conditions therein, which he has not. He would submit that the petitioner has not even approached the bank for the same. As far as the overdraft account is concerned, the Standing Counsel for the bank would submit that the petitioner has not paid any amount at all after default and therefore, he is not entitled to any indulgence in the matter. 3. After hearing both sides, I dispose of this writ petition as follows: (i) As far as the agricultural loan is concerned, the petitioner shall approach the bank with an appropriate petition seeking the benefits of Ext.P2 scheme and complying with the conditions therein. The bank shall consider the claim of the petitioner in accordance with Ext.P2 scheme and pass appropriate orders thereon. The petitioner shall strictly comply with the conditions stipulated by the bank in accordance with Ext.P2 scheme in respect of the agricultural loan. (ii) As far as the overdraft account is concerned, w.p.c.18815/08 3 respondents 1 and 2 shall permit the petitioner to pay the balance amount due as per demand in four equal monthly instalments starting from 15.7.2008. Every subsequent instalment shall be paid on the first working day after 14th of every succeeding month. If the petitioner complies with the above directions, and pays instalments without default on the due dates, further proceedings shall be kept in abeyance. (iii) However, if the petitioner commits default in complying with the above conditions or commits default in payment of any one of the instalments, it would be open to the respondents to continue the proceedings as now initiated without having to issue any fresh notice or proceedings in that regard. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge w.p.c.18815/08 4