IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.T.RAVIKUMAR MONDAY, THE 13TH SEPTEMBER 2010 / 22ND BHADRA 1932 WP(C).No. 27751 of 2010(T) ----------------------------------------- PETITIONER(S): ------------------------- RAJAN, S/O.KUNHIONAKKAN, AGED 53 YEARS, RESIDING AT KALAYAMKULATH, POST KACHERI, EDACHERI, VATAKARA, VATAKARA TALUK, KOZHIKODE DISTRICT, KERALA STATE. BY ADVS. SRI.B.KRISHNAN, SRI.R.PARTHASARATHY. RESPONDENT(S): ------------------------------ 1. KOZHIKODE DISTRICT CO-OPERATIVE BANK LIMITED BRANCH ORKKATTERI -WITH ADDRESS FOR SERVICE- THE MANAGER, KOZHIKODE DISTRICT CO-OPERATIVE BANK LIMITED, BRANCH ORKKATTERI. 2. KOZHIKODE DISTRICT CO-OPERATIVE BANK LIMITED, HEAD OFFICE, KOZHIKODE-WITH ADDRESS FOR SERVICE-THE GENERAL MANAGER, KOZHIKODE DISTRICT CO-OPERATIVE BANK LIMITED, KOZHIKODE-2. 3. THE ARBITRATOR/SPL.SALES OFFICER KDC BANK IN THE COURT OF JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, KALLAI ROAD, KOZHIKODE-673 002. 4. THE REGISTRAR OF CO-OPERATIVE SOCIETIES, TRIVANDRUM. R1 & R2 BY ADV. SRI.P.V.KUNHIKRISHNAN, SC,KDC BANK LTD. R4 BY GOVERNMENT PLEADER SRI. K.C.SANTHOSH KUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss C.T. RAVIKUMAR, J - - - - - - - - - - - - -- - - - - - - - - - - - - - - - W.P.(C)No. 27751 OF 2010 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 13th day of September, 2010 J U D G M E N T The petitioner has availed a loan from the first respondent bank for Rs. 1,50,000/- on 15.3.2001. Chronic default in repayment of instalments towards the loan account constrained the first and second respondents respondents to initiate arbitration proceedings. An award has been passed in ARC No. 445/05 on 12.7.2006. As per the award the petitioner was directed to pay an amount of Rs.2,57,506/- with interest on the principle amount of Rs.1,50,000/- @ 18% with effect from 1.6.2005 and also the actual cost if any for realization, till full realization of the amount. Subsequently, Ext.P3 sale notice has been issued. It is in this circumstances that this writ petition has been filed. The contention of the petitioner is that he is entitled to get benefit of waiver of penal interest and discount on interest under Ext.P4 circular. 2. The learned counsel appearing for the first and second respondents submitted that, in fact, the circular upon which the petitioner is placing reliance, is presently not in WPC.27751/2010 : 2 : force. It is further submitted that, in case, the petitioner remits a substantial amount towards the debt, the present claim of the petitioner, as noticed earlier, would be considered. An amount of Rs. 3,65,785/- is due from the petitioner, it is further submitted. In terms of the award passed in favour of the respondents they are legally entitled to resort to such proceedings as has been initiated against the petitioner. The petitioner cannot attribute any illegality in respect of such proceedings. However, considering these rival contentions I am of the view that this writ petition can be disposed of on the following lines:- In case, the petitioner pays an amount of Rs. 1 lakh on or before 30.10.2010 and then submits an application for waiver of penal interest and discount on interest, the respondents shall consider the said claims in accordance with law. For that matter they shall look in to the relevant orders or circulars on the subject. They shall also consider the question whether the petitioner could be given the facility to pay off the balance amount in instalments. Till 30.10.2010 the respondents shall keep in abeyance all further WPC.27751/2010 : 3 : proceedings initiated as per Ext.P3. It is made clear that in case of failure on the part of the petitioner to effect payment as directed above, it will be open to the respondents to pursue with the proceedings initiated as per Ext.P3. The Writ Petition is disposed of accordingly. Sd/- (C.T. RAVIKUMAR, JUDGE) jma //true copy// P.A to Judge