IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 9TH APRIL 2010 / 19TH CHAITHRA 1932 WP(C).No. 9772 of 2010(V) ------------------------- CMP.1667/2009 of C.J.M.,TRIVANDRUM .................... PETITIONERS: --------------- 1. MOHAMMED ASHRAF, SHAJI MANZIL, ALAMUKKU, POOVACHAL.P.O, THIRUVANANTHAPURAM. 2. NUSAIFA BEEVI, W/O. MOHAMMED ASHRAF, -DO- BY ADV. SRI.BLAZE K.JOSE RESPONDENTS: --------------- 1. UNION BANK OF INDIA, REPRESENTED BY ITS CHIEF MANAGER, REGIONAL OFFICE, UNION BANK BHAVAN, M.G. ROAD, THIRUVANANTHAPURAM. 2. THE AUTHORISED OFFICER, UNION BANK OF INDIA, REGIONAL OFFICE, UNION BANK BHAVAN, M.G. ROAD, THIRUVANANTHAPURAM. ADV. SRI.A.S.P.KURUP, SC, UBI FOR R1-R2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/04/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J. --------------------------- W.P(C). No. 9772 OF 2010 -------------------------- Dated this the 9th day of April, 2010 J U D G M E N T Petitioners are before this Court, aggrieved of the coercive steps taken by the respondent Bank invoking the machinery under the SARFAESI Act. This appears to be the second round of litigation. Petitioners had earlier filed W.P.(C) No.25413 of 2009, wherein Ext.P1 verdict was passed with the following observations: “4. Under the above circumstances the writ petition is disposed of directing the petitioners to make payment of an amount of Rs.1,50,000/- on or before 30.9.2009. Respondents are restrained from taking any coercive steps pursuant to Ext.P3 order till that date. On payment of the said amount the respondent Bank is directed to issue a statement to the petitioners showing the net balance due thereafter. The petitioners shall pay off the balance amount in five equal monthly instalments starting from 1.11.2009 and on the first day of every succeeding month. 5. It is made clear that on the event of failure to pay the initial amount or any of the subsequent installments the benefit granted under this judgment will stand automatically cancelled and the respondent Bank will be free to take all steps available under law. It is further made clear that the benefit granted as above is subject to condition that the petitioners are precluded from raising any further challenge against the proceedings initiated under the SURFAESI Act before this Court or before any other Forum in any subsequent proceedings.” 1. 2. Petitioners are challenging the correctness of the W.P.(C).No.9772/2010 2 course adopted by the respondents contrary to the mandate given by this Court vide the decision cited supra. The learned counsel appearing for the respondent Bank submits, with reference to the statement filed before this Court and also referring to Ext.R1B, that a total sum of Rs.3,25,289 is outstanding towards the 'principal' as well as 'interest', with further interest from 1.1.2010 so as to wipe off the entire liability under the loan transaction and to have the same closed. Learned counsel appearing for the petitioners submitted that petitioners were misled because of the statement, particularly in the last sentence appearing in page 1, where the amount was stated as 'overdue amount' and that the petitioners had to pay the 'future monthly instalments' as well. Since the statement as above is conceded as a mistake and the amount given in Ext.R1B is now confirmed as the 'total outstanding liability', with further interest from 1.1.2010 to close the loan transaction, the position as above is recorded and the petitioners are permitted to clear the entire liability in 'four' equal monthly instalments; the first of which shall be effected on or before 15th May, 2010, to be followed by similar instalments to be effected on W.P.(C).No.9772/2010 3 or before the 15th of the succeeding months. Subject to this, the recovery proceedings initiated against the petitioners shall be kept in abeyance. It is also made clear that, if any default is committed by the petitioners in satisfying the due amount as above, it will be open to the Bank to proceed with appropriate steps for realisation of the entire amount in a lump sum. The writ petition is disposed of as above. P.R.RAMACHANDRA MENON, (JUDGE ) vps W.P.(C).No.9772/2010 4 W.P.(C).No.9772/2010 5