IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 16TH AUGUST 2010 / 25TH SRAVANA 1932 WP(C).No. 19707 of 2010(K) -------------------------- CMP.2389/2010 of C.J.M.,TRIVANDRUM .................... PETITIONER(S): ------------------------ GIGI KRISHNA, SHYNI BHAVAN, PARIYARAM, CHELLAMCODE, VENCODE P.O., NEDUMANGADU,THIRUVANANTHAPURAM DISTRICT. BY ADV. SRI.D.KISHORE RESPONDENT(S): --------------------------- 1. THE NEDUMANGAD CO-OPERATIVE URBAN BANK LTD.NO.3193,NEDUMANGADU P.O., THIRUVANANTHAPURAM 695 541, REPRESENTED BY ITS MANAGER. 2. THE AUTHORISED OFFICER, THE NEDUMANGADU CO-OPERATIVE URBAN BANK LTD., NO-3193,NEDUMANGADU P.O. THIRUVANANTHAPURAM-695 541. R1 & R2 BY ADV. SRI.S.MADHU THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/08/2010 ALONG WITH WPC NO. 21194 OF 2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss P.R.RAMACHANDRA MENON, J. ------------------------------------------------ W.P.(C) Nos. 19707 & 21194 OF 2010 ------------------------------------------------- Dated this the 16th day of August, 2010 J U D G M E N T ~~~~~~~~~~~ The 1st petitioner in W.P.(C) No.21194/2010 had availed a loan of Rs. 75,000/- from the 1st respondent Bank; to which the 2nd petitioner stood as guarantor. Similarly, the petitioner in the other case, who is the 2nd petitioner in W.P.(C) 21194/2010 had a availed a loan of Rs.75,000/- from the very same Bank in February, 2004. The loans were procured on the basis of the security interest created over the property in question. Since the petitioners could not satisfy the repayment by way of instalements on time, there was no other alternative for the Bank, but to declare the accounts as 'NPA' and proceed under the SARFAESI Act, which in turn is subjected to challenge in these Writ Petitions. 2. When the above matters came up for consideration before this Court, the coercive steps were intercepted on different dates on condition that the petitioners deposited a sum of Rs.50,000/- in each case, within the time as specified therein, W.P.(C) No.19707 & 21194/2010 2 which is stated as complied with. On receipt of the notice on admission, the respondent Bank has entered appearance and filed a statement pointing out that, after giving credit to the sum of Rs.50,000/- paid as above, the petitioner in W.P.(C)No.19707/2010 is to satisfy a balance amount of Rs.80,688/- with further interest and cost; whereas the petitioners in the other case are liable to satisfy a further sum of Rs.70,262/- with further interest and costs. 3. The learned counsel for the petitioners submits that the petitioners do not intend to challenge the correctness or sustainability of the steps taken by the Bank by availing the remedy under Section 17 of the SARFAESI Act and that the only relief now pressed before this Court is to permit the petitioners to clear the balance amount by way of reasonable monthly instalments. After hearing both the sides, this Court finds it fit and proper to permit the petitioners to wipe off the entire liability by way of reasonable instalments. Accordingly, the petitioners are permitted to clear the entire outstanding liability by way of 'four' equal monthly instalments; the first of which W.P.(C) No.19707 & 21194/2010 3 shall be effected on ore before the 30th of this month, to be followed by similar instalments to be effected on or 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 the petitioners commit any default in clearing the liability as above, the respondents will be at liberty to proceed with further steps for realisation of the entire amount in lump sum. The Writ Petitions are disposed of as above. (P.R.RAMACHANDRA MENON, JUDGE) ps/17/8