IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 14TH AUGUST 2008 / 23RD SRAVANA 1930 WP(C).No. 20176 of 2008(B) -------------------------- PETITIONER: ------------ P.M.SASI, S/O.KANARAN PANICKER, AGED 41 YEARS, PAMNDINJARE MEPPZLLIL HOUSE IYYANCODE PO., KOZHIKODE BY ADV. SRI.JOHN JOSEPH(ROY) SRI.JEFRIN MANUEL RESPONDENTS: ------------- 1. STATE BANK OF INDIA, REP. BY THE CHIEF MANAGER AND AUTHORISED OFFICER REGIONAL BUSINESS OFFICE-II, 1ST FLOOR SOUTHERN TRADE TOWN, PUSHPA JN., FRANCIS ROAD, KOZHIKODE-2 2. THE BRANCH MANAGER, STATE BANK OF INDIA CHEKIKIND BRANCH, CHEKKIADU PO., KOZHIKODE , BY ADV. SRI.K.JAYAKUMAR FOR R1 SRI.P.B.KRISHNAN SHRI.K.K.CHANDRAN PILLAI, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14/08/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S.SIRI JAGAN, J. ================== W.P.(C).No.20176 of 2008 ================== Dated this the 14th day of August, 2008 J U D G M E N T The petitioner is a defaulter in repayment of loan amount due from him to the 1st respondent bank. The respondents have initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, for coercive recovery, which is under challenge in this writ petition. The petitioner does not dispute the liability to pay or the quantum. He only seeks the benefit of clearing the defaulted arrears in 18 monthly instalments along with the usual monthly EMI. 2. This is stoutly opposed by the standing counsel for the Bank. The bank has filed a statement controverting every contention of the petitioner. The Standing Counsel would point out that after availing of the loan, the petitioner has not paid even one monthly instalment. He would also submit that the impression projected in the writ petition that the petitioner is an agriculturist is totally wrong and that the petitioner is a businessman. w.p.c.20176/08 2 3. Having heard both sides, I am not inclined to give the petitioner the benefit of getting the loan account regularised by paying the defaulted arrears. However, as a matter of indulgence, I am inclined to direct the respondents to permit the petitioner to pay the balance amount in 12 equal monthly instalments. This, the petitioner shall pay from 1.9.2008 onwards. Every subsequent instalment shall be paid on the first working day of every succeeding month. If the petitioner pays the instalments in time, coercive proceedings shall be kept in abeyance. However, if the petitioner commits default in payment of any of the instalments, it would be open to the respondents to continue the proceedings as now initiated without having to issue any fresh notice or proceedings in that regard. To enable the bank to do so, the petitioner shall voluntarily surrender possession of the security interest without any objection which shall be a condition for the benefit mentioned above. The writ petition is disposed of as above. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge w.p.c.20176/08 3