IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC FRIDAY, THE 27TH JUNE 2008 / 6TH ASHADHA 1930 WP(C).No. 19366 of 2008(E) -------------------------- PETITIONER: ------------ V.A.K. ABDUL RASHEED, AGED 57 YEARS, S/O KUNJUMOHAMMED ABDUL KHADER, AL ABRAR,KOOTTUMKAL, PERUMBAIKADU P.O., KOTTAYAM. BY ADV. SRI.C.P.PEETHAMBARAN RESPONDENTS: ------------- 1. M/S STATE BANK OF TRAVANCORE, KANJIKUZHI BRANCH, CKG TOWERS, KOTTAYAM 686 004, REPRESENTED BY ITS BRANCH MANAGER. 2. THE AUTHORISED OFFICER (CHIEF MNAGER), M/S STATE BANK OF TRAVANCORE, KANJIKUZHI BRANCH, CKG TOWERS, KOTTAYAM, 686 004, REP.BY ITS BRANCH MANAGER. BY SC. SRI. SAJI VARGHESE THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J ----------------------------------------------------------------- W.P.(C).NO.19366/2008 ----------------------------------------------------------------- Dated this the 27th day of June, 2008 JUDGMENT Petitioner is a defaulter to the first respondent Bank. Thereupon the Bank has initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. Proceedings are now pending before the Chief Judicial Magistrate,Kottayam, where application made by the Bank for an order under Section 14 of the Act is pending. It is at this stage the writ petition has been filed. 2. The prayer made by the petitioner is for an instalment facility to discharge the debt and also for waiver of penal interest. As far as the waiver of penal interest is concerned, that is a matter for the Bank to consider. As at present, the petitioner has not taken up the matter with the 2 Bank and therefore it is for the first petitioner to move the Bank in this behalf. Admittedly, amount is due from the petitioner and if that be so, the Bank cannot be faulted for the proceedings it has initiated for recovering the amount. 3. Having regard to the limited prayer of the petitioner for an instalment facility to discharge his debt and also taking note of the submissions made on behalf of the Bank, the writ petition is disposed of as follows, i. Within one month from today, the petitioner shall deposit an amount of Rs.1 lakh with the first respondent. Subject to such payment, further proceedings against the mortgaged property, shall be kept in abeyance. ii. It is directed that along with the first instalment it will be open to the petitioner to make a representation to the second respondent for waiver of penal interest in which case, the second respondent shall consider the same and pass orders thereon as expeditiously as possible, at any rate within one week of its receipt. 3 iii. On receipt of such an order from the second respondent, the balance amount due from him shall be paid by the petitioner in 5 equal monthly instalments. The first instalment will be paid within one month of receipt of the communication from the second respondent and the subsequent instalments will be paid within one month thereafter, in every succeeding month. It is clarified that in case the petitioner commits default in paying any one of the instalments as above, it will be open to the Bank to continue the proceedings already initiated. ANTONY DOMINIC JUDGE vi. 4