IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 3688 of 2009(L)
1. CHINNATHAI @ CHINNAMMAL
... Petitioner
Vs
1. THE KERALA STATE CO-OPERATIVE BANK LTD
... Respondent
2. THE AUTHORISED OFFICER
3. THE MANAGER
For Petitioner :SRI.B.S.SWATHY KUMAR
For Respondent :SRI.NAGARAJ NARAYANAN,SC,K.S.CO-OP BANK
The Hon'ble MR. Justice THOTTATHIL B.RADHAKRISHNAN
Dated :05/02/2009
O R D E R
THOTTATHIL B.RADHAKRISHNAN, J.
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W.P(C).Nos.3688 & 3689 OF 2009
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Dated this the 5nd day of February, 2009
JUDGMENT
1. The petitioner in W.P(C).3689/09 is the son of the petitioner
in W.P(C).3688/09. Both of them had availed two different
mortgage loans for business purpose from the first respondent
bank. Both loans were defaulted and SARFAESI Act
proceedings were initiated. The petitioner in W.P(C).3688/09
had moved the Minister for Co-operation and obtained an
order deferring distress action till 15.2.2009. On default, the
properties are listed to 17.2.2009 for sale. Admittedly, the
entire amount, even in terms of the direction of the Minister,
has not been paid.
2. Petitioners have remedy by way of Section 17 of the
SARFAESI Act. But it is stated that they give up that right and
would not file any proceedings before the Debts Recovery
Tribunal under Section 17, challenging the proceedings
impugned in these writ petitions. They state, through their
WPC.3688/08 & 3689/09
Page numbers
learned counsel, that they give up all contentions as against
the impugned proceedings and confines the requests to be one
for an opportunity to regulraise the transactions since the
period of the mortgage loan is till February, 2015 and April,
2015 respectively.
3. On the basis of the written instructions available with the
learned counsel for the first respondent, it is seen that the
total defaulted instalments up to 31.1.2009 is Rs.3,85,000/-
and 3,60,000/- respectively. Those amounts carry further
penalties, securitisation charges, including publication
expenditure etc. Taking all the reliefs and submissions into
consideration, it is directed that if the petitioners remit
Rs.1,00,000/- each on or before the date and time fixed for sale
and deposits the remaining amounts covered by defaulted
EMIs, penalty and all such accruals due thereon, by
31.3.2009, the bank will consider regularising the transactions
and permitting the petitioners to continue to enjoy the loans.
The time limits fixed as above shall be treated as peremptory.
WPC.3688/08 & 3689/09
Page numbers
If there is default in remitting any of the instalments as
aforesaid, the benefit of this judgment shall stand recalled
automatically and distress action shall follow. These writ
petitions are ordered accordingly.
Sd/-
THOTTATHIL B.RADHAKRISHNAN,
Judge.
kkb.9/2.