IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN TUESDAY, THE 11TH OCTOBER 2011 / 19TH ASWINA 1933 WA.No. 1327 of 2011() --------------------- AGAINST THE JUDGEMENT/ORDER IN RP.458/2011 DATED 25/08/2011 .................... APPELLANT(S): PETITIONER ------------------------ GINEESH.N.B,S/O.BALAN,NARETHUPARAMBIL HOUSE,KIZHAKKUPATTUKARA,PERINGAVU VILLAGE, THRISSUR DISTRICT. BY ADV. SRI.M.K.DILEEP KUMAR RESPONDENT(S): RESPONDENTS -------------------------- 1. STATE BANK OF INDIA,REP.BY AUTHORISED OFFICER,IRINJALAKUD A,THRISSUR DISTRICT, PIN-680021. 2. STATE BANK OF INDIA,IRINJALAKUDA BRANCH, THRISSUR DISTRICT,PIN-680021. ADV. SRI.P.V.SURENDRANATH FOR R1 THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 11/10/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.A.NO.1327/2011 APPENDIX RESPONDENT'S EXHIBITS ANNEXURE-R1(a) : COPY OF CHEQUE NO.750824 ISSUED BY THE PETITIONER AND DISHONOURED BY HIS BANK. ANNEXURE-R1(b) : COPY OF MEMO ISSUED BY THRISSUR DISTRICT CO-OPERATIVE BANK FOR REASON FOR DISHONOURING THE CHEQUE ISSUED BY THE PETITIONER. ANNEXURE-R1(c) : COPY OF INCOME TAX RETURN SUBMITTED BY THE PETITIONER FOR THE ASSESSMENT YEAR 2008-09 SHOWING GROSS TOTAL INCOME AS RS.15,40,000/-. ANNEXURE-R1(d) : COPY OF INCOME TAX RETURN SUBMITTED BY THE PETITIONER FOR THE ASSESSMENT YEAR 2008-09 SHOWING GROSS TOTAL INCOME AS RS.9,80,000/-. ANNEXURE-R1(e) : COPY OF GUARANTEE AGREEMENT EXECUTED BY THE PETITIONER ON 22/09/2009 WITH RESPECT TO THE LOAN AVAILED BY SRI.LIJU VINCENT. //TRUE COPY// PA TO JUDGE. jg C.N.RAMACHANDRAN NAIR, Ag.CJ. & P.S.GOPINATHAN, J. .................................................................... W.A. No.1327 of 2011 .................................................................... Dated this the 11th day of October, 2011. J U D G M E N T Ramachandran Nair, Ag.CJ. The appellant filed WP(C) challenging recovery proceedings initiated by the respondent Bank under the SARFAESI Act. Though the learned Single Judge granted time to make payment of specified amounts the appellant could not comply with the same. Consequently no relief was granted. Hence the appellant is before us. 2. During hearing learned Standing Counsel for the respondent Bank submitted that the appellant produced bogus income tax statements and cheques issued by the appellant were disbonoured. The appellant's counsel submitted before us that the Bank has shown discrimination only in appellant's case prohibiting him from remitting cash in the loan account. Learned Standing Counsel for the Bank does not have any confirmation against any restriction imposed by the Bank insisting payment through DDs. W.A.No.1327/2011 2 After hearing both sides what we notice is that the loan is only of 2009 and the monthly installment payable under the two loans is at Rs.62,000/-. It is seen that default is only around Rs.4 lakhs and if that be so, the appellant would have paid at least 20 installments out of the 24 installments payable in the course of two years. So much so, we feel the appellant could be given some more time to regularise the loan accounts by clearing the entire arrears of installments by 31/10/2011. If the appellant clears all installment arrears and installment payable for this month on or before 31/10/2011, then there will be direction to the Bank to regularise the loan accounts of the appellant. Since there is no restriction in depositing cash in the loan accounts the Bank should permit the appellant to deposit cash. The Bank certainly will verify whether the currency remitted is genuine or counterfeit, which applies not only to the appellant but also to every customer. If the appellant commits default in making payment of any of the future installments, the Bank is free to continue the SARFAESI proceedings already initiated against the W.A.No.1327/2011 3 appellant. If the Bank has taken physical possession, the building will be handed over to the appellant if payment is made as above on or before 31/10/2011. On production of a copy of this judgment, the Bank will give up to date statement of accounts of the loan accounts to the appellant for him to clear the arrears on or before 31/10/2011, failing which the Bank can proceed with sale of the property. This Writ Appeal is disposed of as above. C.N.RAMACHANDRAN NAIR, (ACTING CHIEF JUSTICE) P.S.GOPINATHAN, (JUDGE) jg