IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 20TH OCTOBER 2009 / 28TH ASWINA 1931 WP(C).No. 28587 of 2009(P) -------------------------- PETITIONER(S): --------------- 1. ABDUL RAZACK, PROPRIETOR M/S. A.K.TRADING COMPANY KANICHERIL HOUSE, CHOLA, PANMANA, PUTHENCHANTHAI, CHAVARA, KOLLAM - 691 587 2. SMT.LAILA BEEVI, W/O. ABDUL RAZACK, PROPRIETRIX M/S.SOUTHERN FOOD PRODUCTS KANICHERIL HOUSE, CHOLA, PANMANA. PUTHENCHANTHAI, CHAVARA, KOLLAM 691587. BY ADVS. SRI.V.B.UNNIRAJ SMT.R.S.GEETHA RESPONDENT(S): --------------- 1. STATE BANK OF TRAVANCORE, HEAD OFFICE, HOUSING BOARD BUILDINGS, THYCAUD, THIRUVANANTHAPURAM, REPRESENTED BY ITS MANAGING DIRECTOR. 2. GENERAL MANAGER, HEAD OFFICE, HOUSING BOARD BUILDINGS, THYCAUD, THIRUVANANTHAPURAM. 3. ASSISTANT GENERAL MANAGER, STATE BANK OF TRAVANCORE, KOLLAM MAIN BRANCH, BISHOP JEROME NAGAR, KOLLAM. BY ADV. SRI. R.S. KALKURA, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 28587 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 20th day of October, 2009 J U D G M E N T 1. Petitioners are husband and wife. The 1st petitioner had availed a cash credit facility to the tune of Rs.40,00,000/- and also various other loans, including loans for purchase of car and for house construction etc. from the respondent Bank. The total loan amount availed is about Rs.80,00,000/-. The loans were secured through mortgage of various items of immovable properties belonging to the petitioners. According to the petitioners the present market value of six (6) items of properties mortgaged to the Bank, will be around Rs.3.5 crores. Consequent to default committed in repayment of the loans the respondents initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The Chief Judicial Magistrate Court, Kollam was approached under W.P.(C)No. 28587 of 2009 -2- Section 14 (1) of the Act and the proceedings are being persued. In the meanwhile on the basis of the request made by the petitioner the arrears was considered for One Time Settlement and through Ext.P1 letter the petitioner was intimated that the entire outstanding can be settled on payment of an amount of Rs.90,00,000/- on or before 31.08.2009. 2. According to the petitioner he had remitted an amount of Rs.50,00,000/- as evidenced by Ext.P2 statement, on 15.04.2009 and on 20.07.2009. The petitioners thereafter submitted Ext.P3 representation to the 3rd respondent with copy thereof endorsed to higher authorities of the Bank, seeking indulgence to grant further time to pay off the balance amount under the One Time Settlement Scheme. It was also requested for release of title deeds of certain immovable properties, retaining two items of properties situated in Kollam town, which are commercial properties and another item situated at Panmana Village. According to the petitioner the market value of the above W.P.(C)No. 28587 of 2009 -3- said two items of properties itself is more than Rs.1.5 crores and it is sufficient to secure the balance payment due under the One Time Settlement Scheme. Since the above request was not considered and Bank proceed with coercive steps, the petitioners had approached this court. 3. Heard learned standing counsel appearing for the respondents, who on the basis of instructions submitted that, based on request made by the petitioner the Bank had already permitted extension for payment of the balance amount under the One Time Settlement Scheme till 30.11.2009. Therefore it is submitted that the petitioners can pay off the liability in terms of Ext.P1 settlement before the said date, on condition of payment of interest on the balance amount. 4. Learned counsel for the petitioners submitted that unless certain items of properties as requested in Ext.P3 is not released, the petitioner may not be in a position to raise funds to settle the balance payment of Rs.40,00,000/- along with interest. According to the petitioner the entire balance W.P.(C)No. 28587 of 2009 -4- outstanding in the loan account will be around Rs.53.5 lakhs whereas two items of property mentioned in Ext.P3 representation will fetch a market value of Rs.1.5 crores. Therefore according to the petitioner no harm will be caused to the Bank if the two items of properties are released. On the other hand the petitioner can raise funds to settle the payment by sale of any of the items of the properties, if it is released as requested, is the contention. 5. The 1st petitioner had already submitted Ext.P3 representation in this regard. It is for the authorities of the respondent Bank to consider such representation and to take a decision considering feasibility of the request. It is for the Bank to take decision on the issue, after considering the suggestions of the petitioner, if it is acceptable and seems to be just and reasonable. 6. Therefore the writ petition is disposed of directing the competent authority in the respondent Bank to consider and dispose of Ext.P3 representation and to take a decision regarding the request for release of the certain items of W.P.(C)No. 28587 of 2009 -5- immovable properties in order to facilitate the petitioner to pay off the balance amount as per the One Time Settlement Scheme along with interest. A decision in this regard may be taken as early as possible at any rate within a period of two weeks from the date of receipt of copy of this judgment. C.K. ABDUL REHIM JUDGE shg/