IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 7TH JANUARY 2010 / 17TH POUSHA 1931 WP(C).No. 36631 of 2009(Y) --------------------------------------- PETITIONER(S): ---------------------- 1. A. CHANDU NAIR, AGED 75 YEARS, S/O. LATE KUNHAMBU NAIR, PERUMBATH IN KALLAR VILLAGE OF HOSDURG TALUK, P.O.RAGAPURAM. 2. PADMAVATHY, AGED 42 YEARS, W/O. SREEDHARAN.A.V., D/O. A.CHANDU NAIR, PEROOR HOUSE IN KALLAR VILLAG OF HOSDURG TALUK. BY ADV. MR.C.K.SREEJITH RESPONDENT(S): ------------------------- 1. STATE BANK OF INDIA, KANHANGAD BRANCH REP. BY ITS BRANCH MANAGER. 2. SREEDHARAN. A.V., S/O. LATE KUNHAMBU NAIR, PWD CONTRACTOR, PERUMBATH IN KALLAR VILLAGE OF HOSDURG TALUK, KANHANGAD. R1 BY MR.P.G.PARAMESWARA PANICKER, SENIOR ADVOCATE, ADV. MR.P.GOPAL. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/01/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 36631 OF 2009 ......................................................................... Dated this the 7th January , 2010 J U D G M E N T Guarantors to the loan availed by the second respondent are before this Court, seeking to intercept the coercive steps taken by the Bank for realization of the due amount under the loan. 2. The learned Counsel appearing for the respondent Bank submits that the loan was originally availed by the second respondent on 02.12.2006 to an extent of Rs. 5 lakhs , which however was enhanced to Rs. 10 lakhs on 13.03.2008, of course on the guarantee and security provided by the petitioners. As a matter of fact, the above loan was procured by the second respondent in connection with the contract for effecting some constructions for the Panchayat, for which an agreement was also executed, stipulating the relevant terms and conditions . The learned Counsel submits that as per the terms of the agreement, the entire amount procured by the second respondent from the Panchayat was to be channelized through the Bank. However, W.P.(C) No. 36631 OF 2009 2 paying only scant regards to the above stipulation, the second respondent obtained the amount from the Panchayat directly and after appropriating the same, left India, which left the bank in doldrums, under which circumstances, there was no other alternative, but to proceed against the petitioners, being the guarantors to the loan transaction . The learned Counsel also submits that the total liability as on date will exceed to Rs.10 lakhs, besides further interest and cost. 3. The learned Counsel for the petitioner submits that they are ready and willing to to satisfy the liability by way of regular monthly installments; however stating that such installments might be limited to Rs.25,000/- per month. The learned Counsel for the respondent Bank submits that this is contrary to the contents of paragraph No. 2 of the Writ Petition, wherein the petitioner has asserted that there was no need to worry about the repayment, because, the petitioners have got sufficient means to pay off such dues, though the second respondent is stated as away in Japan by virtue of his employment, who had to flee away from India due to financial crisis. W.P.(C) No. 36631 OF 2009 3 4. Considering the facts and circumstances, particularly as to the extent of liability as on date and also taking note of the submission made by the learned Counsel for the petitioners, who have volunteered to pay off the liability at the earliest , this Court finds it fit and proper to permit them to wipe out the entire liability by way of 8 equal monthly installments, the first of which shall be effected on or before 10.02.2010; to be followed by similar installments to be effected on or before the 10th of the succeeding months. It is made clear that if any default is committed by the petitioner in effecting the installments as above, the respondent-Bank will be at liberty to proceed with further steps for realization of the entire outstanding amount in a lump sum, by resorting to appropriate steps as contemplated under the relevant provisions of law. The Writ Petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. lk