IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN WEDNESDAY, THE 27TH JULY 2011 / 5TH SRAVANA 1933 WA.No. 1295 of 2010() --------------------- AGAINST THE JUDGEMENT IN WPC.9754/2010 Dated 17/06/2010 .................... APPELLANT/PETITIONER ------------------------ M/S.VIBHA CHOCOLATES (P) LTD., KINFRA-SIP, NELLAD, COCHIN, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADV. SRI.M.P.ASHOK KUMAR RESPONDENTS/RESPONDENTS -------------------------- 1. THE CHIEF MANAGER, SOUTH INDIAN BANK, REGIONAL OFFICE, MARINE DRIVE, ERNAKULAM. 2. SOUTH INDIAN BANK LTD., MUVATTUPUZHA BRANCH, REPRESENTED BY ITS MANAGER. 3. RESERVE BANK OF INDIA, REGIONAL OFFICE, THIRUVANANTHAPURAM REPRESENTED BY ITS GENERAL MANAGER. ADV. SRI.K.K.JOHN FOR R1,2 THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 27/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX ANNEXURE A1: PHOTOCOPY OF THE PURCHASE ORDER DT.19.7.2010. ANNEXURE A2: PHOTOCOPY OF PROCEEDINGS OF THE MEETING CONVENED BY THE DISTRICT INDUSTRIES CENTRE. ANNEXURE A3: PHOTOCOPY OF ORDER DT.24.3.2011 ISSUED BY THE COMMERCIAL TAX OFFICER. ANNEXURE A4: PHOTOCOPY OF PROCEEDINGS OF THE TAHSILDAR DT.25.3.2011. TRUE COPY P.S. TO JUDGE C.N.RAMACHANDRAN NAIR & P.S.GOPINATHAN, JJ. .................................................................... Writ Appeal No.1295 of 2010 .................................................................... Dated this the 27th day of July, 2011. JUDGMENT Ramachandran Nair, J. We have kept this matter pending for a long time for the appellant to file any viable scheme for settlement. The accrued arrears due to the Bank, according to Standing Counsel for the Bank, is Rs.4.90 crores as of now. The agreed rate of interest is 17.5% and on account of default, the Bank will be charging default interest as well. Therefore, on the face of it, we are of the view that appellant will not be able to service the debt even by paying interest. Therefore, only appellant can find a solution to the problems which may be by getting other promoters or by selling land or other assets and liquidating atleast substantial portion of the loan so that balance loan could be serviced from out of returns from the industry. We do not want to make any specific suggestion, but it is our view that as far as possible the Bank should also help to survive the industry. Since the matter is kept pending for long and since loan is covered by security, we feel one 2 more month's time can be granted to the appellant to approach the Bank with any positive scheme which certainly should involve substantial payment and in that event, we feel the Bank should allow rescheduling or any other facility for settlement of balance liability. Writ Appeal is closed with the above observation and with direction to the Bank to withhold all recovery proceedings for a period of one month from date of receipt of copy of this judgment. If appellant is not able to convince the Bank on any workable solution within one month, the Bank is free to proceed with recovery. Having regard to the loan amount involved, we feel any settlement proposal should be considered at higher level in the Bank, if not by the Board itself. C.N.RAMACHANDRAN NAIR Judge P.S.GOPINATHAN Judge pms