IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN MONDAY, THE 15TH DECEMBER 2008 / 24TH AGRAHAYANA 1930 WP(C).No. 31838 of 2008(M) -------------------------------------- PETITIONER(S): ---------------------- 1. M.K.LATHA, AGED 47 YEARS, W/O.P.N.RADHAKRISHNAN, PROPRIETRIX, M/S.STAR INDIA, PULLEPPADY ROAD, PADMA JUNCTION, ERNAKULAM, KOCHI-682 035. 2. P.N.RADHAKRISHNAN, AGED 49 YEARS, S/O.P.K.NARAYANAN, 60/109,PARAPPURATH HOUSE, KOTTE CANAL ROAD, ERNAKULAM NORTH .P.O, KOCHI-682 018. BY ADV. SRI.ALOSIOUS GILBERT RESPONDENT(S): ------------------------ 1. PUNJAB NATIONAL BANK, KATHRIKADAVU BRANCH, ERNAKULAM, REPRESENTED BY ITS MANAGER. 2. ASSET RECOVERY OFFICER, PUNJAB NATIONAL BANK, ASSET RECOVERY MANAGEMENT BRANCH, 40/1461, MARKET ROAD, ERNAKULAM, KOCHI-682 011. BY ADV. SRI.C.AJITH KUMAR, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/12/2008,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Rs/ THOTTATHIL B. RADHAKRISHNAN, J. = = = = = = = = = = = = = = = = = = = = = = = = W.P.(C).No.31838 of 2008-M = = = = = = = = = = = = = = = = = = = = = = = = Dated this the 15th day of December, 2008. JUDGMENT The petitioners are defaulters of a cash credit facility and the bank has initiated action under the provisions of the SARFAESI Act. An interim order of stay was granted on 30-10-2008 following which, the petitioners deposited an amount of Rs.2 lacs. However, the bank has stated that it will not be possible to regularize the transaction, owing to the fact that during a fairly long period, the facility remained sticky and overdrawn. The loan transaction was accordingly classified as a non-performing asset with effect from 31-12-2007. The rate of interest leviable in terms of the transaction appears to be 14.5% since that is a rate at which the interest is pleaded in paragraph 3 of the counter affidavit, to be adding on to the total outstandings. With the payment of Rs.2 lacs as WP(C)31838/08 -: 2 :- aforesaid, the total outstandings have reduced by that amount from Rs.14,68,839.65 as on 1-5-2008. However, the respondents have stated that the stock in trade is insufficient to support the loan since the stock is only for Rs.2 lacs and 75% of that stock value which could be considered as a limit is insufficient to support the outstandings. Under such circumstances, this writ petition is ordered directing that if the petitioners deposit an amount of Rs.4 lacs in two instalments payable on or before the 15th of January, 2009 and 15th of February, 2009 respectively, the bank will consider whether the loan transaction could be regularized, if the petitioners improve the quantum of stock in trade. This judgment is issued without prejudice to the right of the petitioners to seek redressal of grievance before the DRT in accordance with law. THOTTATHIL B. RADHAKRISHNAN, JUDGE. Sha/161208