IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN THURSDAY, THE 10TH JULY 2008 / 19TH ASHADHA 1930 WP(C).No. 20426 of 2008(F) -------------------------- PETITIONER: ------------ 1. BOSE VARGHESE, 53 YEARS, S/O.C.C.VARKEY CHEMBAKASSERI HOUSE, POTHANICAD PO., VIA., KOTHAMANGALAM, ERNAKULAM, PIN-686671. 2. SHINY BOSE, W/O.BOSE VARGHESE, CHEMBAKASSRIL HOUSE, POTHANICAQD PO., VIA., KOTHAMANGALAM, ERNAKULAM, PIN-686671. 3. ANNAMMA, W/O.LATE VARKEY CHEMBAKASSERIL HOUSE, POTHANICAD PO., VIA., KOTHAMANGALAM ERNAKULAM, PIN-686671. BY ADV. SRI.M.G.KARTHIKEYAN SRI.NIREESH MATHEW RESPONDENTS: ------------- 1. KERALA STATE CO.OP.BANK LTD., THIRUVANANTHAPURAM REP. BY ITS MANAGING DIRECTOR. 2. THE REGIONAL MANAGER, KERALA STATE CO.OP.BANK LTD., REGIONAL OFFICE, ERNAKULAM 3. THE BRANCH MANAGER, KERAQLA STATE CO.OP.BANK LTD., ERNAKULAM BRANCH, ERNAKULAM. BY ADV. SRI.NAGARAJ NARAYANAN,SC,K.S.CO-OP BANK FOR R1 TO 3 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: THOTTATHIL B.RADHAKRISHNAN, J. ------------------------------------------- W.P(C).No.20426 OF 2008 ------------------------------------------- Dated this the 10th day of July, 2008 JUDGMENT Heard learned senior counsel appearing for the petitioners and learned standing counsel for the respondents. 2. Certain facilities were availed by the first petitioner from the first respondent in relation to production of certain cinematographic films. The first petitioner has certain liabilities to the Kerala State Film Development Corporation and other establishments, which had also led to certain litigations, going by the records of this Court. It is stated that many of those liabilities have been wiped off. As of now, the petitioner faces SARFAESI proceedings on account of non-payment of the outstandings due to the first respondent, which, going by Ext.P5, amounts to Rs.31,56,352/- as on 30.6.2007, with all accruals and incidentals thereon with the passage of time. WPC.20426/08 Page numbers 3. The liability to the first respondent is not disputed. The transaction is not disputed. The fact that security interest has been credited in terms of the SARFAESI Act is not disputed. Therefore, there is no jurisdictional error or legal infirmity in the impugned proceedings. Faced with such situation, learned senior counsel for the petitioners submitted that the effort of the petitioners is only to wipe off the entire outstandings and save the property from distress action. Having regard to the total amount involved, including the accruals that are getting added to it, this writ petition is ordered as under; If the petitioner remits an amount of Rupees Seven Lakhs within a period of three weeks and a further amount of Rupees Three Lakhs within a further period of three weeks and continues to remit the entire remaining amounts, including all accruals, in six equal monthly instalments, payable after the remittance of Rupees Ten Lakhs as aforesaid, on or before the expiry of every 30 days, the impugned distress action shall stand WPC.20426/08 Page numbers suspended. In the meanwhile, the Board of the first respondent will consider any request contained in Ext.P6 for remission of the total outstandings, including by waiver of any portion of the interest or penal interest etc. and if such relief is extended, the total recoverables will stand reduced accordingly. If the petitioners are able to find appropriate purchasers, they shall be permitted to sell such portion of the property as may be possible, for which, the entire consideration received shall be paid directly into the Bank to be credited against the loan account. Sd/- THOTTATHIL B.RADHAKRISHNAN, Judge kkb.10/7.