High Court Kerala High Court

Meena Ajithkumar vs The Federal Bank Ltd. on 7 September, 2010

Kerala High Court
Meena Ajithkumar vs The Federal Bank Ltd. on 7 September, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WA.No. 1524 of 2010()


1. MEENA AJITHKUMAR,W/O.LATE AJITHKUMAR.K.S
                      ...  Petitioner

                        Vs



1. THE FEDERAL BANK LTD., REGISTERED OFFICE
                       ...       Respondent

2. AUTHORIZED OFFICER CUM CHIEF MANAGER

                For Petitioner  :SRI.SHOBY K.FRANCIS

                For Respondent  : No Appearance

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice K.SURENDRA MOHAN

 Dated :07/09/2010

 O R D E R
                 C .N. RAMACHANDRAN NAIR, &
                     K. SURENDRA MOHAN, JJ.
                 --------------------------------------------
                       W. A. No. 1524 of 2010
                 --------------------------------------------
              Dated this the 7th day of September, 2010

                               JUDGMENT

Ramachandran Nair, J.

Heard counsel for the appellant and counsel appearing for the

Bank who took notice on admission. Loan was availed by the late

husband of the appellant. Appellant’s case is that business collapsed

and that led to default by her late husband in payment of arrears of the

loan. It is seen that after the Award by the Lok Adalat in 2005,

defaulter has paid Rs. 1 lakh and the appellant, the widow, paid another

Rs. 2 lakhs. Appellant’s case is that relatives of her late husband are

helping her to clear the arrears and business in petrol bunk is currently

run by them. In any case appellant’s counsel has given a suggestion in

Court that monthly instalment of substantial amount of Rs. 1 lakh

together with interest will be paid by the appellant. We feel the

suggestion given by the appellant’s counsel is quite reasonable because

after the death of the borrower, widow is certainly entitled to

WA 1524/2010 2

compassionate treatment by the Bank. However, we are inclined to

grant relief to the appellant only if the appellant accepts her counsel’s

suggestion and gives an undertaking in Bank that she will discharge the

balance liability in monthly instalment of Rs. 1 lakh together with

interest thereon and any default will entitle the Bank to proceed with

record. We therefore allow the Writ Appeal by vacating the judgment

of the learned single Judge and dispose of the WPC by directing the

respondents to withhold all recovery proceedings against the appellant

on condition that appellant clears the entire arrears in monthly

instalment of Rs. 1 lakh and along with it running interest which will

be computed and given by the Bank to the appellant within one week

prior to the date of payment. The Bank Manager will communicate to

the appellant the interest payable along with Rs. 1 lakh, giving the

details of the rate applied. The first instalment will be paid on or

before 20th of this month and balance on or before 20th of every

succeeding month. Bank will work out the actual liability and give a

statement to the appellant as stated above to clear the arrears.

However, if the appellant violates the undertaking given to the Bank,

WA 1524/2010 3

the instalment facility granted by us will automatically stand vacated on

first default, and thereafter the Bank will be free to proceed with

recovery.

(C.N.RAMACHANDRAN NAIR)
Judge.



                                            (K. SURENDRA MOHAN)
kk                                                        Judge.

WA 1524/2010    4