IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 25TH JANUARY 2011 / 5TH MAGHA 1932 WP(C).No. 34449 of 2010(E) -------------------------- PETITIONERS: -------------------- 1. M/S.M.J.VINYL INDUSTRIES,VAZHOOR EAST.PO REPRESENTED BY ITS' PROPRIETOR,JOHNSKUTTY JOSEPH, AGED 47 YEARS,MANIANCHIRAKUNNEL, VAZHOOR EAST.PO. 2. JOHNSKUTTY JOSEPH,AGED 47 YEARS, MANIANCHIRAKUNNEL,VAZHOOR EAST.P.O. BY ADV. SRI.SUNNY XAVIER RESPONDENTS: ---------------------- 1. THE SOUTH INDIAN BANK LTD,REP.BY ITS AUTHORISED OFFICER,REGIONAL OFFICE,K.K.ROAD, COLLECTORATE.P.O,KOTTAYAM-2. 2. THE BRANCH MANAGER,THE SOUTH INDIAN BANK LTD,KANJIRAPPALLY BRANCH,KANJIRAPPALLY.P.O, 3. THE ANICAD REGIONAL FARMER'S SERVICE, CO-OPERATIVE BANK LTD.NO.3867,PALLICATHODU.P.O, KOTTAYAM DISTRICT,REPRESENTED BY ITS' MANAGING DIRECTOR. ADV. SRI.K.K.JOHN FOR R1,2 SRI.LIJI.J.VADAKEDOM FOR R3 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. = = = = = = = = = = = = = WP(C).No.34449 of 2010-E. = = = = = = = = = = = = = Dated this the 25th January, 2011. J U D G M E N T The first petitioner is a small scale unit run under proprietorship of the second petitioner. Consequent to default committed in repayment of a loan availed from respondents 1 and 2, proceedings were initiated against the immovable property which is mortgaged for securing the loan, under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). 2. According to the petitioners, the property now sought to be proceeded is an agricultural land which is exempted from the purview of the SARFAESI Act under Section 31(i). However, the petitioner made attempts to pay off the liability and approached the 3rd respondent Bank for availing loan in the name of the petitioner as well as two other persons. It is pointed out that three mortgages WP(C).No.34449 of 2010-E. 2 (Gehans) were already executed by the applicants before the 3rd respondent in order to complete the formalities of the loan. According to the petitioner, he had approached respondents 1 and 2 for one time settlement of the account by offering payment out of the amounts expected to be received from the 3rd respondent. Since respondents 1 and 2 has not favoured such settlement, this writ petition was filed. 3. According to learned counsel for respondents 1 and 2, the loan account in question is remaining in chronic default and the petitioners have failed to avail the benefits offered under one time settlement on an earlier occasion, as per Ext.P2. 4. However, during pendency of the writ petition, it was revealed that the petitioners could persue respondents 1 and 2 to arrive at a settlement to accept one time payment of an amount of Rs.28.10 lakhs, towards full and final settlement of the outstanding balance. WP(C).No.34449 of 2010-E. 3 5. Heard; learned counsel appearing for the 3rd respondent Bank. According to them, they are prepared to release the amount covered by 'Gehans' already executed, provided the applicants of the loan should fulfill all other formalities including payment of share amount @ 1%. They should also provide encumbrance certificate relating to the property upto date. Learned counsel for the 3rd respondent further submitted that they are prepared to release the amount required for settlement of the liability due to respondents 1 and 2, directly to those respondents provided the title deed and other documents pertaining to the property is transferred directly to the 3rd respondent. 6. Under the above circumstance I am of the view that the matter can be disposed of by issuing appropriate directions to the 3rd respondent to release the amounts by virtue of 'Gehans' already executed by the petitioner and other applicants, and on their completing all other required formalities. Out of the amount to be released, the 3rd WP(C).No.34449 of 2010-E. 4 respondent will make payment of a sum of Rs.28.10 lakhs directly to the 2nd respondent, on getting release and custody of the title deed and other documents pertaining to the immovable property which is under mortgage. The balance amount if any shall be disbursed directly to the applicants concerned. It is made clear that the formalities as directed above shall be completed as early as possible, at any rate on or before 28.2.2011. 7. It is further made clear that if the amounts due to respondents 1 and 2 is not settled in accordance with the above directions, needless to say that respondents 1 and 2 will be at liberty to take further steps of recovery. The writ petition is disposed of with the above observations. C.K.ABDUL REHIM, (Judge) Kvs/-