IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC TUESDAY, THE 26TH MAY 2009 / 5TH JYAISHTA 1931 WP(C).No. 293 of 2009(I) ------------------------ PETITIONER(S): --------------- H.V. RAVEENDRAN, HARIYOOR WARRIAM, MEZHATHOOR P.O., THRITHALA, PALAKKAD DISTRICT. BY ADV. SRI.NAGARAJ NARAYANAN SRI.SAIJO HASSAN SRI.A.S.SABU SRI.BENOJ C AUGUSTIN RESPONDENT(S): --------------- 1. STATE OF KERALA, REP. BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, GOVERNMENT SECRETARIAT,THIRUVANANTHAPURAM. 2. JOINT REGISTRAR OF CO-OPERATIVE SOCITIES (GENERAL), PALAKKAD. 3. THE TRITHALA SERVICE CO-OPERATIVE BANK LIMITED, P.B. NO.1, TRITHALA, PALAKKAD DISTRICT, REPRESENTED BY ITS SECRETARY. ADV. SRI.MILLU DANDAPANI FOR R3 BY GOVT. PLEADER SRI. I.V PRAMOD THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26/05/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC,J. --------------------- W.P.(C).No.293 OF 2009 ------------------------ Dated this the 26th day of May, 2009. JUDGMENT Petitioner seeks to get Ext.P5 quashed and pray for a direction to the respondents to re-calculate the loan arrears afresh excluding defaulted interest, penal interest and other exorbitant rate of interests and return the excess amounts that are allegedly recovered from the petitioner. There is a further prayer to extend the benefit of One Time Settlement Scheme in terms of the RBI guidelines. 2. On facts, it is seen that as early as on 12.5.1997 petitioner had availed of a commercial loan of Rs.2,85,000/-from the respondent bank. The amount was refundable in instalments with interest at 19.5.%. Agreement also provide for consequences of default. Admittedly default was committed and the Bank filed an Arbitration Case No.164/99. Award was obtained by the Bank enabling it to realize the dues in terms of the loan agreement. Still amount was not paid and the Bank WP(c).No.293/09 2 initiated execution proceedings in 2004. Mortgaged property was brought for sale and finally the Bank itself purchased the property for an amount of Rs.7.26 lakhs. 3. Subsequent to all this, the petitioner and other co- owners approached the Bank by filing Ext.R3(b) dated 21.8.2007, requesting for returning the mortgaged property to them. Ext.R3(b) shows that the signatories had expressed their willingness to pay the amount as specified by the Bank. Accordingly, Bank calculated the dues and demanded payment of Rs.11,36,000/-. The amount was paid without any complaint and property was also returned. 4. It was after all these developments the petitioner started to complain that the quantification of the dues done by the Bank was erroneous. According to the petitioner what they had agreed in Ext.R3(d) was to pay only reasonable amounts and that the Bank realized exorbitant amount illegally. The stand of the Bank is that they purchased the property and when the petitioner requested for return of the property by Ext.R3(b), they quantified their dues in terms of the loan agreement and when the petitioner paid the aforesaid WP(c).No.293/09 3 amount,the property was returned. 5. Ext.R3(c) itself shows that the rate of interest payable was 19.5%. The Bank points out that, in terms of the agreement between the parties they added interest at the rate of 19.5% to Rs.7.26 lakhs, that was due from the petitioner and it was on that basis that the property was released. It is also the case of the petitioner that overdue interest was recovered. Nothing was placed on record to show that the collection and quantification by the Bank is not in terms of the agreement between the parties. If as stated by the Bank they have calculated the dues in terms of the agreement. petitioner cannot avoid the liability to pay, particularly in view of the unconditional offer made by the petitioner in R3(b). Therefore, on the material produced I am not in a position to conclude that any illegality has been committed by the Bank in realizing the dues, warranting interference in this proceedings. Writ Petition fails and is dismissed. vi (ANTONY DOMINIC) JUDGE WP(c).No.293/09 4 vi/ WP(c).No.293/09 5