IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE CHIEF JUSTICE MR.J.CHELAMESWAR & THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN MONDAY, THE 14TH JUNE 2010 / 24TH JYAISTHA 1932 WA.No. 705 of 2010 ---------------------- AGAINST JUDGMENT IN WPC NO.33289/2008 dated 18.3.2010 APPELLANT/PETITIONER --------------------------- LISSY JACOB, AGED 65 YEARS, W/O.LATE JOSEPH, KOOTUNGAL HOUSE, PANAMBUKADU.P.O, COCHIN-682504. BY ADV. SRI.PEEYUS A.KOTTAM RESPONDENTS/RESPONDENTS 1-4/ADDL.5TH RESPONDENT ------------------------------------------------------------------ 1. CHIEF MANAGER AND AUTHORIZED OFFICER, FEDERAL BANK LTD., BR.ALUVA, BANK JUNCTION, IST FLOOR, FEDERAL HEIGHTS, ALUVA-683101, KERALA. 2. MANAGER, FEDERAL BANK LTD., BR.ALUVA, BANK JUNCTION, IST FLOOR, FEDERAL HEIGHTS, ALUVA-683101, KERALA. 3. P.G.PETER, S/O.P.B.GEORGE, PALLIPANATH HOUSE, S.N.PURAM, THAIKKATTUKKARA.P.O, ALUVA-683106. 4. P.M.SHYLAJA, W/O.PETER, PALLIPANATH HOUSE, S.N.PURAM, THAIKKATTUKKARA.P.O, ALUVA-683106. 5. THE STATION HOUSE OFFICER, ALUVA POLICE STATION, ALUVA. R1 & R2 BY STANDING COUNSEL SRI.K.K.CHANDRAN PILLAI R5 BY SR.GOVERNMENT PLEADER SRI.BENNY GERVASIS THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 14/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.Chelameswar, C.J. & P.N.Ravindran, J. ------------------------------------------ W.A. No.705 of 2010 ------------------------------------------ Dated this the 14th day of June, 2010 JUDGMENT J.Chelameswar, C.J. This writ appeal is preferred by the petitioner in W.P.(C) No.33289 of 2008 which was disposed of by a learned Judge of this Court by judgment dated 18th March, 2010 with certain directions. 2. The appellant along with respondents 3 and 4 borrowed certain amount from the Federal Bank Limited of which respondents 1 and 2 are the officers. The abovementioned borrowers did not repay the loan amount in terms of the agreement between them. The loan itself was availed for the purchase of a motor car. In view of the default on the part of the borrowers, pursuant to the orders passed by this Court on 12.11.2008 and 9.11.2009, the creditor Bank seized the vehicle purchased by utilizing the borrowed amount and sold. Such a sale fetched an amount of Rs.71,500/-. W.A.No.705 of 2010 - 2 - 3. In view of the fact that the abovementioned sale did not fetch sufficient value to satisfy the debt due to the Bank and in view of the pendency of the writ petition challenging the proceedings against the appellant and two others for recovery of the debt due to the Bank, the learned Judge by the judgment under appeal disposed of the writ petition. The operative portion of the judgment reads as follows: “The learned Counsel for the respondent Bank submits that the outstanding liability, after giving credit to the amount already paid, is Rs.4.11 lakhs. The petitioner is directed to satisfy the entire liability by way of 'eight' equal monthly instalments, the first of which shall be paid on or before 31.03.2010, to be followed by similar instalments to be effected on or before the 30th of the succeeding months. Subject to the above, all recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance. It is made clear that, if any default is committed in effecting the instalments as above, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire amount in a lump sum.” W.A.No.705 of 2010 - 3 - 4. Not satisfied with the said order, the instant writ appeal is preferred. However, when the matter is taken up today, learned counsel for the respondent Bank submitted that according to the instructions received by him, as on today, the appellant owes an amount of Rs.4,48,934/- and if the appellant is willing to settle the entire outstanding amount by the end of this month, the Bank is agreeable to forgo one lakh rupees and accept an amount of Rs.3,48,934/- in full and final settlement of all the claims of the Bank against the appellant, vis-a-vis the abovementioned loan transaction. 5. On the other hand, the learned counsel for the appellant submits that the Bank did not take into account the value fetched on the sale of the vehicle referred to earlier while determining the loan amount outstanding from the appellant and if only such value is given credit to, the appellant is agreeable to settle the entire loan amount due to the respondent Bank by the end of this month as suggested by the respondent Bank. W.A.No.705 of 2010 - 4 - In the circumstances, the writ appeal is disposed of directing the appellant to make the entire outstanding amount in the light of this order on or before 30th June, 2010, failing which the respondent Bank will be at liberty to proceed in accordance with law for recovery of the amount due from the appellant. J.Chelameswar, Chief Justice P.N.Ravindran, Judge vns