IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 9TH SEPTEMBER 2009 / 18TH BHADRA 1931 WP(C).No. 21224 of 2009(W) -------------------------- PETITIONER(S): --------------- K.SUBRAMANIAN,S/O.APPUTTY, KARANAMKOTTU HOUSE,OTHALLUR AMSOM, KOKKUR DESOM, PONANI TALUK, MALAPURAM DISTRICT. BY ADV. SRI.C.M.MOHAMMED IQUABAL RESPONDENT(S): --------------- 1. THE MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD.,HEAD OFFICE, POST MALAPPURAM, REPRESENTED BY ITS GENERAL MANAGER. 2. THE MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD.,CHANGARAMKULAM BRANCH, POST CHANGARAMKULAM, MALAPURAM DISTRICT REPRESENTED BY ITS MANAGER. ADV. SRI.E.K.MADHAVAN FOR R SRI.V.KRISHNA MENON SMT.P.VIJAYAMMA SMT.UMA GOPINATH THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J. --------------------------------- WP(C) NO. 21224 OF 2009 ----------------------------------- Dated this the 9th day of September, 2009 J U D G M E N T The petitioner is the guarantor for a loan availed by one Sri.T.Vasudevan, S/o. Kumaran, from the second respondent Bank, to the tune of Rs.2,00,000/-. Since the loanee defaulted repayment the Bank had issued Ext.P1 notice, threatening coercive steps under the provisions of the Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). As per Ext.P1 notice, a total amount of Rs.2,76,007/- was due as on 26.06.2009. On receipt of Ext.P1, petitioner submitted Ext.P2 representation before the second respondent seeking permission for repayment of the amount in instalment and also requesting to allow waiver of interest to the possible limit. The petitioner had approached this Court when coercive steps for recovery was threatened against him, without considering Ext.P2 representation. 2. Heard Standing Counsel appearing for the respondents. It is submitted that, the total arrears due as on 31.08.2009 is Rs.2,83,436/- along with future interest. It is submitted that, neither the loanee nor the petitioner have not paid any amount after 2003 and there is chronic default and consequently the loan account was included into the NPA category. Therefore allowing any relief of equity is opposed. 3. Having considered the rival contentions, I am inclined to show indulgence for affording reasonable time to the petitioner to pay off the entire WPC NO.21224/2009 2 liability in instalments. It is for the respondent Bank to consider whether waiver with respect to any portion of the interest can be allowed for settling the arrears. 4. Under the above circumstances, the Writ Petition is disposed of directing the petitioner to pay amount of Rs.75,000/- on or before 15.10.2009. The respondents shall keep in abeyance all further proceedings of recovery till then. On payment of the said amount, the respondent Bank shall intimate the petitioner about the total balance outstanding as on that date after crediting all payments and after considering possible waiver of interest. On receipt of such intimation, the petitioner shall make payment of the entire balance, in 4 (‘four’) equal monthly instalments, starting from 15.11.2009 onwards and on the 15th day of every subsequent months. If the instalments are paid on a regular basis, the Bank shall keep all further proceedings of recovery pending. 5. It is made clear that, on the event of default in payment of the initial amount or any of the subsequent instalments, the benefit granted under this judgment will stand automatically recalled and the respondents will free to take all recovery steps permissible under law. It is further made clear that the benefit granted under this judgment is subject to the condition that the petitioner is precluded from any subsequent challenge against the proceedings under the Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), before this Court or before any other Forum. C.K. ABDUL REHIM JUDGE dnc