IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 27TH JANUARY 2010 / 7TH MAGHA 1931 WP(C).No. 2519 of 2010(L) ------------------------- PETITIONERS: --------------- 1. ASOKAN.M., PROPRIETOR, CLASSIC TIMBERS, KALLAMAM, ANCY BHAVAN, VEERANKAVU P.O., KATTAKADA, THIRUVANANTHAPURAM. 2. SELVI, W/O. ASOKAN, ANCY BHAVAN, EZHAMOOZHY, VEERANKAVU P.O., KATTAKADA, THIRUVANANTHAPURAM. BY ADV. SRI.GEORGE JOHNSON RESPONDENTS: --------------- 1. THE AUTHORISED OFFICER (UNDER SARFAESI ACT). CHIEF MANAGER (ADVANCES), STATE BANK OF TRAVANCORE, REGION - II. ZONAL OFFICE SANTHI NAGAR, THIRUVANANTHAPURAM - 695001. 2. THE BRANCH MANAGER, STATE BANK OF TRAVANCORE, KATTAKADA BRANCH, THIRUVANANTHAPURAM. BY SRI.K.S.KALKURA SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27/01/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J ----------------------------- W.P(C) No. 2519 of 2010-L ------------------------------ Dated this the 27th day of January, 2010. J U D G M E N T The first petitioner had availed a cash credit facility from the respondent bank on the strength of the guarantee given by the second petitioner, who is his wife and her daughter by named Smt.Ancy, and creating security interest over 10 cents of the land belonging to the guarantors. The case of the petitioner is that the petitioners could not effect the repayment on time as scheduled, when the bank declared the loan as 'NPA' and proceeded under the SARFAESI Act despite the willingness expressed from the part of the petitioners to clear the loan account at the earliest. 2. The learned counsel for the respondent bank submits that the outstanding liability as discernible from Ext.P2 is about Rs.5.30 lakhs plus further interest and cost. Since the loan was a business loan and admittedly the petitioner does not have any business as on date, as stated in the Writ Petition; the loan account is not liable to be re-scheduled or regularized; submits the learned counsel. W.P(C) No. 2519 of 2010-L 2 3. After hearing the rival submissions, this Court finds that the petitioner could be permitted to clear the entire outstanding liability by way of reasonable instalements. Accordingly, the petitioner is directed to deposit the sum of Rs.1 lakh on or before 15th of February 2010 and the balance amount shall be cleared by way of ‘five’ equal monthly instalements; the first of which shall be effected on or before the 15th of March 2010; to be followed by similar instalments to be effected on or before the 15th of the succeeding months. Subject to the above, the recovery proceedings pursuant to Ext.P1 shall be kept in abeyance. It is made clear that, on satisfying the first instalment as above, the petitioner will be at liberty to approach the bank for availing some or other concession, if at all available and it shall be considered by the bank to the permissible extent. If any default is committed by the petitioner in satisfying the liability as above, the respondent bank will be at liberty to proceed with further steps for realization of the entire amount in a lump sum, from the stage where it stands now. The Writ Petition is disposed of. Sd/- P.R.RAMACHANDRA MENON ab JUDGE //True Copy// P.A to Judge W.P(C) No. 2519 of 2010-L 3