IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE CHIEF JUSTICE MR.J.CHELAMESWAR & THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 7TH APRIL 2010 / 17TH CHAITHRA 1932 WA.No. 563 of 2010 -------------------------- AGAINST THE JUDGEMENT IN WPC.34158/2009 Dated 26/11/2009 .................... APPELLANT/[PETITIONER: ------------------------------------- K.ANAND,MANALERYTHAZHZTHU,KOVOOR, CHEVAYUR P.O,KOZHIKODE. BY ADV. SRI.V.M.KURIAN SRI.K.T.THOMAS SRI.MATHEW B. KURIAN RESPONDENTS/RESPONDENTS: --------------------------------------------- 1. SOUTH INDIAN BANK,JAIL ROAD BRANCH, KOZHIKODE,REPRESENTED BY ITS BRANCH MANAGER. 2. THE AUTHORISED OFFICER,SOUTH INDIAN BANK,REGIONAL OFFICE,CHAKKORATHUKULAM,WEST HILL, KOZHIKODE-5. 3. M.K.JULIE,ADVOCATE COMMISSIONER, ADVOCATE,BAR ASSOCIATION,KOZHIKODE. R1 & R2 BY STANDING COUNSEL SRI.K.K.JOHN THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 07/04/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.Chelameswar, C.J. & C.N.Ramachandran Nair, J. ------------------------------------------ W.A. No.563 of 2010 ------------------------------------------ Dated this the 7th day of April, 2010 JUDGMENT C.N.Ramachandran Nair, J. This writ appeal is filed against the judgment of the learned Single Judge dated 26th November, 2009 in W.P.(C) No.34158 of 2009 granting four instalments to clear the arrears of instalments that had already fallen due so that the appellant could settle the liability by paying future instalments. The loan is admittedly for a period of 15 years and in between proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 have been initiated by the Bank because of chronic default. 2. We have heard learned counsel for the appellant and Sri.K.K.John, learned Standing Counsel appearing for the first respondent Bank. 3. Considering the contention of the appellant that he will W.A. No.563 of 2010. - 2 - be able to settle the entire liability to the Bank by selling the ground floor or first floor of the building and retaining the balance for his own use, we feel three months time can be granted to the appellant for this purpose. 4. However, we find force in the contention of the learned Standing Counsel for the first respondent Bank that sale of the mortgaged property should be permitted only after the full liability is settled to the Bank. 5. Accordingly, the writ appeal is disposed of modifying the judgment of the learned Single Judge as follows: i) The first respondent Bank will withhold the recovery proceedings for a period of three months from today. ii) In the meanwhile, the appellant should arrange for sale of part or full of the house and enter into an agreement for sale of the property. iii) The sale deed will be executed only after the entire balance amount is paid to the first respondent Bank after any eligible incentive which the Bank will consider taking into account the full W.A. No.563 of 2010. - 3 - payment being made by the appellant and after the Bank releases the title deed to him. iv) The agreement can provide for the purchaser depositing the entire net liability due to the Bank and for payment of balance consideration to the appellant. The appellant will register the sale deed only after the full liability due to the first respondent Bank is settled in terms of the direction given above. v) If there is any default in payment of the entire liability, the Bank is free to take possession of the property immediately on default and notify the same for sale. J.Chelameswar, Chief Justice C.N.Ramachandran Nair, Judge vns