IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 8TH SEPTEMBER 2009 / 17TH BHADRA 1931 WP(C).No. 23894 of 2009(F) -------------------------- PETITIONER(S): --------------- RAMANI GOPALAN, W/O. GOPALAN, AGE 55 YEARS, GARDEN GATE APARTMENTS, GANDHI NAGAR, KOCHI. BY ADV. SRI.V.M.KRISHNAKUMAR SMT.P.A.ANITHA RESPONDENT(S): --------------- 1. THE AUTHORISED OFFICER UNDER THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT 2002, ERNAKULAM DISTRICT CO-OPERATIVE BANK LIMITED, ERNAKULAM. 2. ERNAKULAM DISTRICT CO-OPERATIVE BANK LIMITED REP. BY MANAGING DIRECTOR, O/O ERNAKULAM DISTRICT CO-OPERATIVE BANK, ERNAKULAM. 3. BRANCH MANAGER, ERNAKULAM DISTRICT CO-OPERATIVE BANK, ELAMKULAM BRANCH, ERNAKULAM. ADV. SRI.P.V.SURENDRANATH, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.23894 OF 2009 ------------------------------ Dated this the 8th day of September, 2009 J U D G M E N T ---------------------- 1. Petitioner had availed a loan from the 2nd respondent Bank to the tune of Rs.14,50,000/- for establishing a printing press. Repayment of the loan was defaulted after payment of some of the installments, allegedly due to loss suffered in the business. The 2nd respondent Bank issued Ext.P1 demand notice requesting to pay the entire arrears amounting to Rs.23,79,095/-. Through Exts.P2 and P3, the petitioner had requested the Bank to consider settlement under the 'One time settlement Scheme' and also requested to drop all further coercive steps facilitating the petitioner to pay off the liability within a reasonable period. It is evident from Ext.P4 that the Bank had initiated proceedings under the provisions of the SARFAESI Act and symbolic possession of the property mortgaged for securing the loan had already been taken over under Section 13(4) of the said Act. On receipt of Ext.P4 the petitioner further submitted Ext.P5 seeking time for payment of the balance amount. 2. Heard the learned counsel for petitioner and Standing Counsel appearing for the respondent Bank. It is submitted that W.P.(C).23894/09-F 2 the arrears due in the loan account as on 24.8.2009 is Rs.38,36,628/- along with future interest. It is further submitted that eventhough there is no existing scheme for One time settlement, the matter can be considered for settlement, on allowing possible waiver of interest, provided the petitioner makes a considerable payment immediately. Having considered the entire facts and circumstances of the case I am inclined to direct consideration of settlement of the arrears, on condition of the petitioner making a substantial payment. 3. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.7 lakhs on or before 15.10.2009, and to submit a representation to the 2nd respondent Bank seeking settlement of the balance on allowing waiver of interest to the extent possible. The respondent Bank shall thereupon take a final decision in the matter permitting waiver of interest to the allowable extent and providing reasonable installment facility for payment of the balance amount. The decision taken in this regard shall be communicated to the petitioner providing reasonable time for effecting payment of such installments. All further proceedings pursuant to Ext.P4 notice shall be kept in abeyance till such decision is taken by the Bank. It is made clear that on failure to make payment of the amount as stipulated above, or on payment W.P.(C).23894/09-F 3 of any further installments allowed by the Bank, the Bank will be at liberty to take all further proceedings permissible under law for realising the arrears. C.K.ABDUL REHIM, JUDGE. okb