IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.T.RAVIKUMAR THURSDAY, THE 29TH OCTOBER 2009 / 7TH KARTHIKA 1931 WP(C).No. 29967 of 2009(M) -------------------------- PETITIONER(S): --------------- BABU ABRAHAM PUKKUNNEN, S/O. ABRAHAM, AGED 63 YEARS, PUKKUNNEN HOUSE, PUTHUPPADI P.O., MUVATTUPUZHA-686 673. BY ADV. SRI.PEEYUS A.KOTTAM RESPONDENT(S): --------------- 1. STATE BANK OF TRAVANCORE, MUVATTUPUZHA BRANCH, P.B.NO.1, MUNICIPAL SHOPPING COMPLEX BUILDINGS, MUVATTUPUZHA-686 661, REPRESENTED BY ITS AUTHORIZED OFFICER (CHIEF MANAGER). 2. STATE BANK OF TRAVANCORE, MUVATTUPUZHA BRANCH, P.B.NO.1, MUNICIPAL SHOPPING COMPLEX BUILDINGS, MUVATTUPUZHA-686 661, REPRESENTED BY ITS BRANCH MANAGER. BY SC SRI. SATHISH NINAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.29967 OF 2009 ------------------------------ Dated this the 29th day of October, 2009 J U D G M E N T ---------------------- 1. Challenge in this writ petition is against proceedings initiated by respondents under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) against immovable property belonging to the petitioner, which is mortgaged for securing two loans from the 2nd respondent Bank. The petitioner had availed an amount of Rs.15 lakhs for construction of a commercial building and another amount of Rs.2.5 lakhs as agricultural loan. According to the petitioner, due to stringent financial conditions emerged out of general economic recession, the petitioner could not continue regular repayments. Consequently the loan accounts fell into arrears and the respondents have categorised the accounts under 'NPA'. When issued with notice under Section 13(2) of the SARFAESI Act, the petitioner had approached the respondent Bank with Ext.P3 request to consider “One Time Settlement” under a scheme introduced by the Government. In order to show his bonafides, the petitioner had effected payment of an amount of Rs.65,000/- along with the said request. Since coercive steps are pursued without taking into W.P.(C).29967/09-M 2 consideration of Ext.P3, the petitioner is approaching this court. 2. Standing counsel appearing for respondents 1 and 2, on the basis of instructions submitted that, the loan accounts are in gross default since the year 2007 onwards, and as on 25.8.2009 there is an outstanding of Rs.13,94,546/- along with cost and future interest. It is further submitted that the loan accounts of the petitioner will not come within the category of borrowings for which the “One Time Settlement Scheme” is introduced and therefore consideration for OTS under the scheme is not possible. It is also submitted that the Bank had furnished a reply in this regard to the petitioner pursuant to receipt of Ext.P3. 3. Having confronted with the above contentions, learned counsel for the petitioner submitted that he is ready and willing to pay off the entire liability within a reasonable time, in installments, provided the Bank may consider possible waiver of interest/default interest. The respondents are not favouring such proposal in view of the fact that the amounts in arrears is comparatively high and the loan accounts are in chronic default since the last more than two years. 4. Having considered rival contentions and facts and circumstances of the case, I am of the opinion that some indulgence can be shown in the matter of permitting the W.P.(C).29967/09-M 3 petitioner to pay off the entire liability within a reasonable time, eventhough interference on merits is not desirable in the case. 5. Accordingly the writ petition is disposed of directing the petitioner to make payment of an amount of Rs.3,00,000/- (Rupees Three lakhs only) on or before 30.12.2009. The respondents are directed to keep in abeyance further steps till such date. On payment of the said amount the respondents will issue a balance statement to the petitioner after crediting all payments made and after considering waiver of interest/default interest and expenses to the possible extent. The petitioner shall continue payment of the balance amount so intimated along with future interest if any liable in 4 (four) equal monthly installments thereafter, to be paid on or before 31.1.2010 and on or before the last day of the succeeding three months. 6. It is made clear that on the event of default in payment of any of the amounts as stipulated above, the respondents will be free to proceed with further steps pursuant to the notices already issued and on such event the petitioner will be precluded from raising any subsequent challenge against such proceedings. C.K.ABDUL REHIM, JUDGE. okb