IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 23894 of 2009(F)
1. RAMANI GOPALAN, W/O. GOPALAN,
... Petitioner
Vs
1. THE AUTHORISED OFFICER UNDER THE
... Respondent
2. ERNAKULAM DISTRICT CO-OPERATIVE
3. BRANCH MANAGER, ERNAKULAM DISTRICT
For Petitioner :SRI.V.M.KRISHNAKUMAR
For Respondent :SRI.P.V.SURENDRANATH, S.C.
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :08/09/2009
O R D E R
C.K.ABDUL REHIM, J.
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W.P.(C).No.23894 OF 2009
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Dated this the 8th day of September, 2009
J U D G M E N T
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1. Petitioner had availed a loan from the 2nd respondent
Bank to the tune of Rs.14,50,000/- for establishing a printing
press. Repayment of the loan was defaulted after payment of
some of the installments, allegedly due to loss suffered in the
business. The 2nd respondent Bank issued Ext.P1 demand notice
requesting to pay the entire arrears amounting to Rs.23,79,095/-.
Through Exts.P2 and P3, the petitioner had requested the Bank
to consider settlement under the ‘One time settlement Scheme’
and also requested to drop all further coercive steps facilitating
the petitioner to pay off the liability within a reasonable period.
It is evident from Ext.P4 that the Bank had initiated proceedings
under the provisions of the SARFAESI Act and symbolic
possession of the property mortgaged for securing the loan had
already been taken over under Section 13(4) of the said Act. On
receipt of Ext.P4 the petitioner further submitted Ext.P5 seeking
time for payment of the balance amount.
2. Heard the learned counsel for petitioner and Standing
Counsel appearing for the respondent Bank. It is submitted that
W.P.(C).23894/09-F 2
the arrears due in the loan account as on 24.8.2009 is
Rs.38,36,628/- along with future interest. It is further submitted
that eventhough there is no existing scheme for One time
settlement, the matter can be considered for settlement, on
allowing possible waiver of interest, provided the petitioner
makes a considerable payment immediately. Having considered
the entire facts and circumstances of the case I am inclined to
direct consideration of settlement of the arrears, on condition of
the petitioner making a substantial payment.
3. Accordingly the writ petition is disposed of directing
the petitioner to make payment of an amount of Rs.7 lakhs on or
before 15.10.2009, and to submit a representation to the 2nd
respondent Bank seeking settlement of the balance on allowing
waiver of interest to the extent possible. The respondent Bank
shall thereupon take a final decision in the matter permitting
waiver of interest to the allowable extent and providing
reasonable installment facility for payment of the balance
amount. The decision taken in this regard shall be
communicated to the petitioner providing reasonable time for
effecting payment of such installments. All further proceedings
pursuant to Ext.P4 notice shall be kept in abeyance till such
decision is taken by the Bank. It is made clear that on failure to
make payment of the amount as stipulated above, or on payment
W.P.(C).23894/09-F 3
of any further installments allowed by the Bank, the Bank will be
at liberty to take all further proceedings permissible under law
for realising the arrears.
C.K.ABDUL REHIM, JUDGE.
okb