IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 27TH JULY 2010 / 5TH SRAVANA 1932 WP(C).No. 18263 of 2010(G) -------------------------- PETITIONERS: --------------- 1. MARY MATHEW, KOLOTH HOUSE, AGED 73, PERINGULAM, KOTTAYAM. 2. MATHEW JOSEPH, AGED 45, KOLOTH HOUSE, PERINGULAM, KOTTAYAM. 3. MATHAI JOSEPH, AGED 75, KOLOTH HOUSE, PERINGULAM, KOTTAYAM. 4. JOSE JOSEPH, KOLOTH HOUSE, PERINGULAM, KOTTAYAM. BY ADV. MR. JOHNSON MANAYANI MR. BENHUR JOSEPH MANAYANI RESPONDENTS: --------------- 1. ASSISTNAT GENERAL MANAGER, (AUTHORISED OFFICER), FEDERAL BANK REGIONAL OFFICER, KOTTAYAM. 2. MANAGER, FEDERAL BANK LTD, POONJAR BRANCH, KOTTAYAM DISTRICT. ADV. MR. MOHAN JACOB GEORGE MS. P.V.PARVATHI MS. REENA THOMAS MR. RAM MOHAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 18263 of 2010 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 27th day of July, 2010 JUDGMENT The petitioners availed 'four' different loans from the respondent Bank, creating security interest over the property in question. But the repayments were not at all prompt, under which circumstances, the Bank declared the account as 'NPA' and proceeded with further steps under the SARFAESI Act, which in turn is under challenge in this Writ Petition. 2. When the matter came up for consideration before this Court on 11.6.2010, the coercive steps were intercepted, on condition that, the petitioners deposited a sum of Rs. 5 lakhs, which is stated as complied with. The learned counsel for the petitioners submits that, the petitioners had already preferred Ext. P2 application before the respondent Bank for extending the benefit under the 'OTS' Scheme and that the petitioners are ready to satisfy the liability accordingly. 3. The learned counsel appearing for the respondent Bank, with reference to the contents of the counter affidavit filed, submits that, Ext. P2 representation has never been obtained to the Bank and that even the interim order passed by this Court on 11.6.2010 was also not caused to be served upon the Bank on time. In the course of further W.P. (C) No. 18263 of 2010 : 2 : steps, symbolic possession of the property in question was taken over by the Bank on 25.6.2010 and it was only thereafter, that the copy was served to the Bank on 26.6.2010, pursuant to which, all further proceedings have been kept in abeyance. The learned counsel submits that, after giving due credit to Rs. 5 lakhs deposited by the petitioners pursuant to the interim order dated 11.6.2010, the outstanding liability under the loan account will come to Rs. 20,67,330/- as on 15.7.2010. If the petitioner files any concrete suggestion as to the amount proposed to be offered by him to settle the liability under the 'OTS' Scheme, the same will be considered and let known to the petitioners. The learned counsel for the petitioners submits that, but for the above relief sought for, the petitioners do not intend to press any other grounds projected in the Writ Petition, nor do they intend to approach the DRT for availing the statutory remedy. 4. Taking note of the submissions to enable the petitioners to clear the entire liability either under the 'OTS' or by way of installments, the respondent Bank is directed to consider the application to be preferred by the petitioners or to be submitted by the petitioners within 'one week', offering some concrete suggestion as to the amount being offered to clear the liability under OTS, and appropriate orders shall be passed within 'two weeks' thereafter. If the amount stipulated by the W.P. (C) No. 18263 of 2010 : 3 : Bank extending the benefit of 'OTS' Scheme is not satisfied by the petitioners in terms of the order to be passed by the Bank, the entire liability shall be cleared by the petitioners as now demanded, by way of 'six' equal monthly installments; the first of which shall be effected on or before the 30th of the August, 2010 to be followed by the similar installments to be effected on before the 30th of the succeeding months. Subject to this, the coercive proceedings, stated as being pursued against the petitioners shall be kept in abeyance, for the time being. It is made clear that, if any default is committed by the petitioners, in effecting the payments as above, the respondents will be at liberty to proceed with further steps, from the stage where it stands now. The Writ Petition is disposed of. P. R. RAMACHANDRA MENON, JUDGE kmd