IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 17TH SEPTEMBER 2009 / 26TH BHADRA 1931 WP(C).No. 25601 of 2009(U) -------------------------- PETITIONER(S): --------------- MARY XAVIER, CHAKKALAKKAL HOUSE, VADUTHALA, ERNAKULAM, COCHIN-23. BY ADV. SRI.K.RAVEENDRAN SRI.ANIL KUMAR M.SIVARAMAN RESPONDENT(S): --------------- CHIEF MANAGER AND AUTHORISED OFFICER, BANK OF INDIA, ZONAL OFFICE, KERALA ZONE, KALOOR TOWERS, KALOOR-KADAVANTHARA ROAD, COCHIN-17. ADV. SRI.KODOTH SREEDHARAN, S.C. FOR BANK OF INDIA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/09/2009, ALONG WITH WP(C).26187 OF 2009 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. --------------------------------------------------- W.P.(C).No.25601 And 26187 OF 2009 --------------------------------------------------- Dated this the 17th day of September, 2009 J U D G M E N T ---------------------- 1. Parties in both the writ petitions are one and the same. The petitioner claims to be a widow. She along with her son and a neighbour, obtained on lease about 1 Acre of wet land from a third person for starting prawn farming, on a group farming basis. For the said purpose the son of the petitioner as well as the neighbour had availed two distinct loans from the respondent Bank to the tune of Rs.6,50,000/- and Rs.7,50,000/- respectively. The petitioner stood as guarantor for both the loans and mortgaged her residential property in favour of the respondent Bank, which is having an extent of 3.95 cents along with a building situated therein. It is submitted that the prawn farming failed due to various reasons and the loan amount could not be repaid as per the schedule. Grievance of the petitioner is against the proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI Act). Ext.P1 notice in both the cases, under Section 13(2) of the said Act were already issued against the secured asset. It is apprehended that steps for taking over possession and sale of the property will be effected in a hasty manner. It is also contended that the arrears in the W.P.(C).25601 & 26187/09 2 loan accounts is liable to be waived under the provisions of the Fishermen Debt Relief Scheme formulated by the State Government. 2. Heard standing counsel appearing for the respondent Bank. It is submitted that an amount of Rs.7,65,005/- and Rs.8,79,364/- are due in both the loan accounts and the loanees as well as the petitioner had committed gross default in the repayments. Hence the proceedings under the SARFAESI Act is pursued. 3. Having confronted with the above situation learned counsel for the petitioner submitted that the petitioner is ready to pay off the entire arrears in both the loan accounts if reasonable time for payment in installments is granted and if the respondent Bank is prepared to consider waiver of interest to the possible extent. The learned standing counsel submitted that as such there is no scheme for “One Time Settlement” and the respondent Bank may not be in a position to consider waiver of interest to any considerable extent. 4. Having considered rival contentions, I am of the opinion that eventhough this Court is not justified in entering into any of the disputes regarding the proceedings initiated under the SARFAESI Act, some indulgence can be shown with respect to providing installment facility for payment of the entire arrears. W.P.(C).25601 & 26187/09 3 5. In the result the petitioner is directed to make payment of an amount of Rs.2,00,000/- (Rupees Two Lakh) each in both the loans on or before 15.10.2009. On payment of the said amounts the respondent Bank shall issue a balance statement to the petitioner showing the outstanding balance as on that date, after crediting all payments, and after considering waiver of interest to the possible extent. The petitioner shall continue payment of the balance amount so intimated in both the loan accounts in six equal monthly installments starting from 15.11.2009 and on or before the 15th day of every subsequent months. 6. It is made clear that on the event of default in paying the initial amount or any of the installments, the benefit granted under this judgment will stand automatically recalled and the Bank will be at liberty to proceed further under the provisions of the SARFAESI Act. It is further made clear that the benefit granted under this Judgment is subject to the condition that the petitioner is precluded from raising any further challenge against the proceedings under the SARFAESI Act before this Court or before any other forum. C.K.ABDUL REHIM, JUDGE. okb