IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE CHIEF JUSTICE MR.J.CHELAMESWAR & THE HONOURABLE MR. JUSTICE ANTONY DOMINIC FRIDAY, THE 8TH APRIL 2011 / 18TH CHAITHRA 1933 WP(C).No. 8029 of 2011(C) ------------------------- PETITIONER(S): --------------------- SHRI.ZUBIN BABU, PARTNER, M/S.INTEGRATED BUSINESS PROMOTIONS, S/O.BABU THOMAS, AGED 36 YEARS, 41/2924, OLD RAILWAY STATION ROAD, KOCHI-682018. BY ADV. SRI.G.HARIHARAN SRI.PRAVEEN.H. SR.ADVOCATE SRI.KURIAN GEORGE KANNAMTHANAM SRI.ZAKEER HUSSAIN RESPONDENT(S): ---------------------- 1. M/S.FEDERAL BANK LTD., P.B.NO.1927, BANERJI ROAD, ERNAKULAM NORTH, KOCHI-682018, REP. BY ITS BRANCH MANAGER. 2. ASHA R.S., ADVOCATE COMMISSIONER (CRL.M.P.675/2011), CHIEF JUDICIAL MAGISTRATE COURT, ERNAKULAM. ADV. SRI.A.ANTONY FOR R1 SRI.A.ANTONY FOR R-1 SMT.LEELAMMA ANTONY FOR R-1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 8/04/2011, ALONG WITH WA NO.494/11, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.CHELAMESWAR, C.J. & ANTONY DOMINIC, J. =============================== W.P.(C) No.8029 OF 2011 & W.A. NO. 494 OF 2011 =================== Dated this the 8th day of April, 2011 J U D G M E N T Antony Dominic, J. The petitioner/appellant is a partner of a firm by name M/s.Integrated Business Promotions. The firm had availed of loans from the 1st respondent Bank to the tune of `30,00,000/-. As collateral security for the said loan, the property having an extent of 6.401 cents situated in Sy.No.298/6 of Ernakulam Village with residential building belonging to the petitioner's father was mortgaged. 2. Default was committed and the Bank initiated proceedings under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Thereupon the petitioner and the firm approached this Court by filing WP(C) No.34826/10. That writ petition was disposed of by Ext.P2 judgment. 3. According to the petitioner, in terms of the liberty given in the judgment, he filed Ext.P3 application for the benefit WP(C) No.8029/11 & WA No.494/11 : 2 : of a One Time Settlement Scheme and he also made payments in terms of the interim orders passed in the writ petition. According to him, during the pendency of his application for the benefit of one time settlement scheme, the Bank obtained an order from the Chief Judicial Magistrate Court, Ernakulam under Section 14 of the Act and the Advocate Commissioner appointed by the Court, the 2nd respondent herein, issued Ext.P7 notice. It was thereupon that the present writ petition was filed seeking a direction for the consideration of Ext.P3 application for the benefit of one time settlement scheme with a further direction to keep further proceedings in abeyance. 4. In the writ petition, learned Single Judge passed interim order dated 28th of March, 2011 directing the petitioner to remit an amount of `25,00,000/- on or before 8/4/2011. It is challenging the said order, the petitioner in the writ petition filed WA No.494/11. When the writ appeal came up for orders, we called for the writ petition itself. 5. We heard the learned senior counsel appearing for the petitioner/appellant and also the learned standing counsel WP(C) No.8029/11 & WA No.494/11 : 3 : appearing for the respondent Bank. We are perfectly in agreement with the contention raised by the learned standing counsel for the Bank that in view of the fact that Ext.P2 judgment has become final, the petitioner/appellant could not have legitimately sought any direction from this court preventing the Bank from proceeding further with the impugned proceedings. 6. Be that as it may, we have considered the fact that the interest of Bank will not be prejudiced even if an instalment facility is allowed to the petitioner to discharge the liability providing sufficient safeguards protecting the interest of the Bank also. Bearing above in mind, we dispose of the writ petition itself with the following directions:- 1. That on or before 18/4/11, out of the amounts that are now due to the Bank, the petitioner shall pay an amount of `10,00,000/- (Rupees ten lakhs only) to the Bank. 2. On payment of the first instalment as above, the Bank will issue a statement to the petitioner indicating the balance liability that is WP(C) No.8029/11 & WA No.494/11 : 4 : due from the petitioner. 3. It is directed that within 3 months from 18.4.2011, the petitioner shall discharge the balance liability that is due to the Bank. 4. Subject to payment as above, it is directed that proceedings further to Ext.P7 notice issued by the 2nd respondent shall be kept in abeyance and it is clarified that in case the petitioner commits default in any of the aforesaid conditions, the respondents will be free to continue the proceedings in accordance with law. Since the writ petition itself is disposed of, no further orders are called for in WA No.494/11. Writ appeal is closed. J.CHELAMESWAR CHIEF JUSTICE. ANTONY DOMINIC JUDGE. Rp