IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE 12TH JANUARY 2010 / 22TH POUSHA 1931 WP(C).No. 30246 of 2009(A) -------------------------------------- PETITIONER: ------------------- M/S.SANGEETHA ENTERPRISES, UNIVERSITY ROAD, RAMANATTUKARA, KOZHIKODE DISTRICT, REP.BY ITS PARTNER SHRI.M.SAJITH KUMAR. BY ADVS. MR.T.M.SREEDHARAN, SMT.C.K.SHERIN, MR.V.P.NARAYANAN. RESPONDENTS: ------------------------ 1. THE AUTHORISED OFFICER UNDER SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002, FEDERAL BANK, (REGD.OFFICE AT ALWAYE, KERALA), REGIONAL OFFICE FEDERAL TOWERS, MAVOOR ROAD, KOZHIKODE. 2. THE BRANCH MANAGER, FEDERAL BANK LIMITED, CHALIYAM-673 301, KOZHIKODE DISTRICT. R1 & R2 BY MR.GEORGE VARGHESE (MANACHIRACKEL), S.C. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12/01/2010, ALONG WITH W.P.(C). NO. 30267 OF 2009,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.30246/2009-A: APPENDIX PETITIONERS' EXHIBITS: EXT.P.1: COPY OF THE ACCOUNTS STATEMENT FURNISHED TO THE PETITIONER BY THE R.2. EXT.P.2: COPY OF THE LETTER DTD. 18/11/2008 ISSUED BY THE R.2. EXT.P.3: COPY OF THE NOTICE ISSUED U/S 13(2) OF THE ACT BY THE R.1. EXT.P.4: COPY OF THE REPRESENTATION DTD. 21/10/2009 SUBMITTED BY THE PETITIONER TO THE R.2. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.A. TO JUDGE. Prv. P.R.RAMACHANDRA MENON, J ----------------------------- W.P(C) No. 30246/2009 & 30267/2009 ------------------------------ Dated this the 12th day of January, 2010. J U D G M E N T The issues involved in both these cases are very much interconnected, in so far as two different loans were extended by the respondent bank; the first one, a 'Car loan' in the name of the petitioner in W.P(C) No.30267 of 2009, and the other, a 'business loan' in the name of the petitioner in the connected case which is a partnership firm owned by the petitioner in W.P.(C) No.30267 of 2009 and his wife. The car loan was of Rs.6.8 lakh, while the business loan was of Rs.15 lakhs. But the petitioners were not at all eager to clear the liability due under the instalments as specified; which made the respondent bank to proceed with further steps for realization of the due amounts and this forms the subject matter of challenge in these writ petitions. 2. The learned counsel for the respondent bank submits on instructions, that a sum of Rs.17.79 lakhs is due in respect of the business loan involved in W.P.(C) No.30246 of 2009 and a sum of Rs.1,54,500/- is due towards the defaulted instalments in respect W.P(C) No. 30246/2009 & 30267/2009 2 of the car loan involved in W.P.(C) No.30267 of 2009. The learned counsel further submits that the bank is very much agreeable to have the car loan regularized, on condition that the petitioner satisfies the overdue amounts in respect of the said loan; however adding that, it is not possible for the bank to have the business loan regularized. 3. Taking note of the relevant facts and circumstances, this Court directs the petitioner to have the liability cleared in respect of the 'Car loan' by satisfying the over due amounts by way of 'three' equal monthly instlaments. The first instalment in this regard shall be paid on or before the 31st of this month, to be followed by the remaining instalments to be effected on or before the 25th of the succeeding months. This will be in addition to the liability of the petitioner to effect regular EMIs in respect of the car loan as well. Subject to the above car loan account of the petitioner in W.P.(C) No.30267 of 2009 shall stand regualarised. If the petitioner commits any default in this regard or if any two consecutive defaults are made in satisfying the regular EMIs, the benefit granted by this Court will stand withdrawn and the respondent bank will be at liberty to proceed against the petitioner for realisation of the entire amount in a lump sum, from the stage where it stands now. W.P(C) No. 30246/2009 & 30267/2009 3 4. With regard to the issue involved in W.P.(C) No.30246 of 2009, taking note of the submission made by either side and also considering the extent of liability under the 'business loan' this Court finds it fit and proper to permit the petitioner to clear the said liability by way of five equal monthly instlaments. The petitioner in the said case is accordingly directed to clear the entire liability in respect of the 'business loan' in 'five' equal monthly instalments; the first of which shall be effected on or before 15.2.2010, to be followed by similar instalments to be effected on or before the 15th of the succeeding months. It is made clear that, if any default is committed by the petitioner in satisfying the due amount as above, it will open to the bank, to proceed with appropriate steps for realization of the entire due amount in a lump sum. Both the Writ Petitions are disposed of accordingly. Sd/- P.R.RAMACHANDRA MENON, JUDGE //True Copy// P.A to Judge ab