IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN FRIDAY, THE 6TH AUGUST 2010 / 15TH SRAVANA 1932 WP(C).No. 22488 of 2010(I) --------------------------------- PETITIONER(S): --------------- SAJITH SEBASTAIAN PUTHUSSERY HOUSE, KANJOOR, ANKAMALI. BY ADV. MR.K.A.SREEJITH RESPONDENT: --------------- THE CHIEF MANAGER, STATE BANK OF INDIA, IRINJALAKUDA BRANCH, IRINJALAKUDA,THRISSUR-680 121. ADV. MR. P.V. SURENDRANATH - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S. SIRI JAGAN, J. ------------------------------ W.P.(C) No.22488 OF 2010 ------------------------------- Dated this the 6th day of August, 2010 J U D G M E N T The petitioner availed a loan amounting to Rs.27 lakhs from the respondent bank on 1.5.2009. The petitioner defaulted repayment of three instalments. He cleared two of the outstanding instalments on 4.6.2010. The petitioner is now aggrieved by the action of the bank in issuing possession notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. The petitioner, therefore, seeks the following reliefs: “1) writ of mandamus or other appropriate writ or order quashing the proceedings initiated in pursuance of Exhibits P2, P3 & P4 2) direct the respondent to consider Exhibit P2 and regularise the account” 2. The learned Standing Counsel for the bank stoutly opposes the prayers of the petitioner. According to him, the petitioner has played a fraud on the bank which is under investigation. It is because of the likelihood of perpetuating that fraud that the bank has decided to issue the possession notice, is W.P.(c)No.22488/10 2 his contention. He also disputes the factual averments in the writ petition. But he admits that the petitioner has cleared dues up to 4.6.2010. 3. Heard both sides. In view of the fact that the petitioner offers to regularise the loan account by paying all defaulted instalments and undertakes to pay all future instalments as per the loan agreement on the due date, I am of opinion that the respondent can give the petitioner another opportunity to prove his bonafides. 4. Accordingly, this writ petition is disposed of with the following directions: On the date when the next instalment is due, the petitioner shall pay all arrears including interest due on the arrears. The respondent shall on such payment, withdraw the possession notice. The undertaking of the petitioner that he will hereinafter pay all future instalments on the due date is recorded. If the petitioner commits default in payment of any instalment on the due date, it would be open to the respondent to proceed further in accordance with the notice presently issued. Otherwise further proceedings shall be kept in W.P.(c)No.22488/10 3 abeyance. It will also be open to the respondent to continue investigation regarding the alleged fraud committed by the petitioner and if any fraud is proved, they can also take appropriate action thereon, for which this judgment shall not stand in the way. S. SIRI JAGAN, JUDGE acd W.P.(c)No.22488/10 4