IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 9TH DECEMBER 2009 / 18TH AGRAHAYANA 1931 WP(C).No. 33860 of 2009(B) -------------------------- PETITIONER(S): --------------- 1. C.H. NOORDEEN, S/O. MOHAMMED KUNJU, 4/C HARBOUR CRUST, KURISUPALLY ROAD, RAVIPURAM, COCHIN - 682 015. 2. HYDER, S/O. ABDUL KHADER, CHETTIKUDIYIL HOUSE, KAVUMKARA, MUVATTUPUZHA. 3. SHABEENA, W/O. HYDER, CHETTIKUDIYIL HOUSE, KAVUMKARA, MUVATTUPUZHA. BY ADVS. SRI.K.JAJU BABU SMT.M.U.VIJAYALAKSHMI SRI.T.R.SADEESAN SRI.A.HAROON RASHEEDA. RESPONDENT(S): --------------- 1. UNION BANK OF INDIA, NODAL REGIONAL OFFICE, UNION BANK BHAVAN, M.G. ROAD, ERNAKULAM - 682 035, REPRESENTED BY ITS DEPUTY GENERAL MANAGER. 2. THE SENIOR BRANCH MANAGER, UNION BANK OF INDIA, MUVATTUPUZHA BRANCH, MUVATTUPUZHA. BY ADV. SRI. A.S.P. KURUP, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 33860 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 9th day of December, 2009 J U D G M E N T 1. First petitioner is the brother of one Sri. P.M. Yunas, who availed a cash credit facility from the 1st respondent Bank. Petitioners 2 & 3 are the guarantors with respect to the transaction. When coercive steps were initiated under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), consequent to default committed by the borrower, the 1st petitioner intervened and an amount of Rs.17.6 lakhs was paid towards the arrears. One item of property included in the security was already released and the 1st petitioner had executed an undertaking in the form of an affidavit, as evidenced from Ext.P2, to the effect that he will clear the entire balance outstanding. On the above premise coercive steps initiated under the SARFAESI Act was kept pending. W.P.(C)No. 33860 of 2009 -2- 2. Now the petitioners are approaching this court seeking direction for release of another item of property, on the promise to make payment of a further sum of Rs.15 lakhs. The petitioner also seeks direction to consider his request for 'One Time Settlement'/'Compromise Settlement'. Learned standing counsel appearing for respondents submitted that the entire balance outstanding in the loan account will be around Rs.17 lakhs as on today. Since one item of property has already been released, any further release of property can be considered only on settling the entire arrears. 3. Having confronted with the above situation, learned counsel for the petitioners submitted that he is limiting the prayer to the extent of issuing direction to the Bank to consider 'One Time Settlement'/'Compromise Settlement' and to permit the petitioners to pay off the entire liability within a reasonable time. 4. Considering the facts and circumstances of the case, I am of the view that with respect to the settlement of W.P.(C)No. 33860 of 2009 -3- the loan account, the petitioner can approach the concerned authority of the respondent Bank. They can also seek time for payment of the balance amount. It is for the respondent Bank to consider possible waiver of interest/penal interest and expenses, on the basis of such request. Since there is no coercive steps pending, the petitioner can pursue his remedies before the authorities of the Bank. Needless to say that if any approach is made as above within a period of two weeks form today, the respondent shall consider and take a decision thereof, and shall intimate the same to the petitioner, before proceeding with further coercive steps. C.K. ABDUL REHIM JUDGE shg/