IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN THURSDAY, THE 21ST JANUARY 2010 / 1ST MAGHA 1931 WP(C).No. 34659 of 2009(B) -------------------------------------- PETITIONERS: --------------------- 1. C.S.VIMAL KUMAR, 'DARSANAM', CHAVARKODE, PARAPPALLY P.O., KOLLAM. 2. LATHA VIMAL KUMAR, W/O.C.S.VIMAL KUMAR, 'DARSANAM', CHAVARKODE, PARAPPALLY P.O., KOLLAM. BY ADV. MR.G.BHAGAVAT SINGH. RESPONDENTS: ------------------------ 1. THE PARAVOOR S.N.V.R.C. BANK LTD. NO.1685, PARAVOOR P.O., KOLLAM, REP. BY ITS SECRETARY. 2. THE ARBITRATOR CUM SALE OFFICER, PARAVOOR S.N.V.R.C. BANK LTD. NO. 1685, PARAVOOR P.O., KOLLAM. R1 BY ADV. MR.B.SURESH KUMAR. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21/01/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.34659/2009-B: APPENDIX PETITIONERS' EXHIBITS: EXT.P.1: COPY OF THE LETTER DTD. 18/07/2009 ISSUED BY THE A.R GENERAL, KOLLAM TO THE P.2. EXT.P.2: COPY OF THE REPRESENTATION DTD. 10/11/09 FILED BY THE PETITIONERS BEFORE THE R.1. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE. Prv. P.N.RAVINDRAN, J. ---------------------------------------- W.P.(C) No. 34659 of 2009 - B ---------------------------------------- Dated 21st January, 2010 Judgment Heard Sri.G.Bhagavat Singh, the learned counsel appearing for the petitioners and Sri.B.Suresh Kumar, the learned standing counsel appearing for the respondents. 2. The petitioners who are husband and wife, along with the brother of the first petitioner had availed three loans from the first respondent bank. When the loan was not repaid, the bank initiated arbitration proceedings. In the arbitration cases, awards were passed holding the petitioners and their deceased brother jointly and severally liable to pay the sum of Rs.23,96,542/-. The awards have become final. When the bank initiated execution proceedings, the petitioners moved the Hon'ble Minister for Co-operation seeking his interference in the matter. The Hon'ble Minister forwarded the said representation to the Registrar of Co-operative Societies who ins turn forwarded it to the Assistant Registrar of Co-operative Societies, Kollam. Acting on the said representation, by Ext.P1 W.P.(C) No.34659/2009 2 letter dated 18.7.2009, the Assistant Registrar of Co- operative Societies, Kollam informed the petitioners that the Secretary of the bank has informed the Assistant Registrar that in the event of the petitioners closing the loan account forthwith by remitting the entire dues, the rate of interest will be scaled down from 18% to the current rate of interest. The petitioners did not even thereafter remit the entire loan amount. Their claim was again considered in the Adalat held on 22.10.2009. In the Adalat, the bank agreed to reduce the rate of interest from 18% to 14% in the event of the petitioners remitting the amount due applying the reduced rate of interest in lump. The petitioners did not remit the amount in lump. Instead, they sent Ext.P2 representation to the Secretary of the first respondent bank requesting for a reasonable opportunity to pay the amount in instalments. This writ petition was thereafter filed on 1.12.2009 seeking the following reliefs: “(a) direct the 1st respondent to refix the liability of the petitioners as well as the deceased Sri.Anilkumar in W.P.(C) No.34659/2009 3 accordance with the principle laid down by the Apex Court; (b) consider Ext.P2 within a time frame and pass appropriate orders in accordance with law enabling the petitioners to pay of the entire dues by 10 equal instalments; (c)stay the entire coercive steps on the basis of the settlement arrived at the Adalath on 22.10.2009.” 3. When the writ petition came up for admission on 8.12.2009, taking note of the submission made by the learned counsel for the petitioners that the petitioners are seeking only an opportunity to pay the amount due in instalments, this Court passed the following interim order: “4. However, taking a lenient view, I am inclined to consider the question of permitting the petitioners to pay the amounts in instalments provided, the petitioners pay Rs.5 lakhs before 31.12.2009. Accordingly, there would be a stay for one month on condition that the petitioners pay Rs.5 lakhs before 31.12.2009. The question of permitting the petitioners to pay the balance amount in instalments would be considered after the petitioners deposit the above amount.” W.P.(C) No.34659/2009 4 4. It is conceded at the Bar that pursuant to the interim order passed by this Court on 8.12.2009, the petitioners have remitted the sum of Rs.5 lakhs on 30.12.2009. When the writ petition came up for hearing today, Sri.G.Bhagavat Singh, the learned counsel appearing for the petitioners submitted that the petitioners may be permitted to pay the balance amount due in ten monthly instalments and that the writ petition may be disposed of giving them an opportunity to pay the balance amount due in ten instalments. Sri.B.Suresh Kumar, the learned standing counsel for the respondents opposed the said request. He submitted that the rate of interest was scaled down from 18% to 14% in the Adalat on the understanding that the petitioners will clear the amount due in lump and not in instalments. The learned counsel for the respondents submitted that in such circumstances, the petitioners are not entitled to any indulgence in the matter of repayment of the loan. 5. I have considered the submissions made at the Bar by the learned counsel appearing on either side. In my opinion, W.P.(C) No.34659/2009 5 the learned counsel for the respondents is well founded in his submission that the petitioners had an obligation to pay the entire amount due in lump and that it was on the understanding that they will pay the amount due in lump the rate of interest was scaled down from 18% to 14%. After having derived that benefit, the petitioners are instead of paying the amount in lump, seeking an opportunity to pay the amount in ten monthly instalments. In my opinion, the conduct of the petitioners disentitles them to any such relief. However, in view of the fact that the writ petition has already been admitted and the petitioners have remitted the sum of Rs.5 lakhs, I am of the opinion that the petitioners can be given an opportunity to pay the balance amount due from them in five equal monthly instalments. I accordingly dispose of the writ petition with the following directions: (i) Respondents 1 and 2 shall within one week from today furnish to the petitioners a statement of accounts informing the petitioners of the amount due W.P.(C) No.34659/2009 6 from them towards full and final settlement of the loans availed by them and the first petitioner's elder brother; (ii) The petitioners shall pay the said amount in five equal monthly instalments. The first instalment shall be paid on or before 15.2.2010 and the balance instalments shall be paid on 15th of every month. If 15th day of any English Calendar month is a holiday, payment shall be made on the next working day. It is clarified that in the event of the petitioners committing default in payment of any two consecutive instalments, it will be open to the respondents to realise the balance amount due from the petitioners in lump by initiating appropriate proceedings. P.N.RAVINDRAN Judge vaa