IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 2ND APRIL 2007 / 12TH CHAITHRA 1929 WP(C).No. 8892 of 2007(H) ------------------------- PETITIONER: ------------ K.K. SREEDHARAN, AGED 50 YEARS, S/O. KRISHNAN, KOOTTALA HOUSE, VATANAPPALLY, THRISSUR DIST. BY ADV. SRI.K.T.SHYAMKUMAR RESPONDENTS: ------------- 1. THE CANARA BANK, GURUVAYUR BRANCH, VYJAYANTHI BUILDING, EAST NADA, GURUVAYUR, THRISSUR DISTRICT. 2. THE AUTHORIZED OFFICER, CANARA BANK, REGIONAL OFFICE, ERNAKULAM. BY ADV. SRI.PAULY MATHEW MURICKEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/04/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S.SIRI JAGAN, J. ================================= W.P.(C).No.8892 of 2007 ================================== Dated this the 2nd day of April, 2007 J U D G M E N T The petitioner is a defaulter in repayment of loan taken from the 1st respondent bank. Therefore, the bank has initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (“the Act” for short) for bringing the security interest to sale in accordance with the said Act. The same is under challenge in this writ petition. However, what the petitioner really wants now is only time to pay of the amounts. He submits that he would be in a position to repay the amount, if he is given instalment facility. He also submits that if the bank is willing to consider his claim for taking the loan out of the NPA account, another bank is willing to take over the loan. 2. The learned counsel for the respondents stoutly opposes the writ petition. According to him, more than Rs.18,54,292/- with accrued interest is due. Of course, he admits that the petitioner w.p.c.8892/07 2 has already paid an amount of Rs.1,75,473 on 8.3.2007 and another amount of Rs.25,000/-on 19.3.207. (The petitioner now submits that he has paid another amount of Rs.1 lakh on 29.3.2007 which could not be confirmed by the counsel for the Bank as he could not get instructions in that regard). The counsel for the bank submits that the petitioner has been given sufficient time to pay of the amount and it is only because he did not respond positively, the respondents were forced to initiate proceedings under the Act. 3. Having considered the rival contentions, I feel that some indulgence can be shown to the petitioner in the matter of repayment of the balance amount due. Accordingly, the writ petition is disposed of as follows: The petitioner shall pay an amount of Rs.5 lakhs within one month from today and also file an application before the 1st respondent for taking the loan out of the NPA account so that he can get another bank to take over the loan. If the petitioner pays Rs.5 lakhs as above, the respondents shall allow the petitioner to pay the w.p.c.8892/07 3 balance amount in five equal monthly instalments starting from 2nd July, 2007. If the petitioner complies with the above directions promptly, the respondents shall keep further proceedings under the Act in abeyance. However, if the petitioner commits default in complying with in any of the above conditions or payment in instalments, it would be open to the respondents to continue proceedings now initiated without having to issue any fresh notice or proceedings in that regard. The respondents shall also consider the request of the petitioner for taking his loan liability out of the NPA Account so as to facilitate taking over the loan by another bank and pass appropriate orders thereon, within a month after the petitioner pays the amount of Rs.5 lakhs as directed above. Needless to say, the said direction shall be only to the effect that the bank shall consider the request of the petitioner in accordance with the bank's norms. sdk+ S.SIRI JAGAN, JUDGE w.p.c.8892/07 4