High Court Kerala High Court

K.Sreekanth vs Andhra Bank on 21 August, 2008

Kerala High Court
K.Sreekanth vs Andhra Bank on 21 August, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 21723 of 2008(J)


1. K.SREEKANTH, PROPRIETOR, M/S MAYOORA
                      ...  Petitioner

                        Vs



1. ANDHRA BANK,
                       ...       Respondent

2. S.MOHANKUMAR,

3. SREEJAMOL K.S.,

4. VIJU KRISHNAN, K.KRISHNAN,

                For Petitioner  :SRI.S.M.PREM

                For Respondent  :SRI.ABRAHAM MATHEW (VETTOOR)

The Hon'ble MR. Justice S.SIRI JAGAN

 Dated :21/08/2008

 O R D E R
                        S. SIRI JAGAN, J.
                 ------------------------------------
                   W.P.(C)No.21723 OF 2008
               ----------------------------------------
               Dated this the 21st day of August, 2008

                            JUDGMENT

The petitioner challenges proceedings under the

Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, initiated by the 1st

respondent for recovery of loan amounts due from the petitioner

under a loan, which the petitioner has defaulted repayment of.

However, the petitioner does not dispute the liability to pay or

the quantum. The petitioner confines his prayer for a permission

to pay off the amounts due in instalments. He would also pray

for a direction to the 1st respondent to consider the petitioner’s

claim for settling the loan under the One Time Settlement

Scheme.

2. The learned counsel appearing for the bank would

submit that the petitioner has been given sufficient opportunity to

pay off the amount and the petitioner has not cared to pay the

amount, in spite of several opportunities given. He also submits

that the petitioner has not yet submitted a proposal for One Time

W.P.(c)No.21723/08 2

Settlement also.

3. I have considered the rival contentions in detail.

Despite the objections raised by the 1st respondent, I am of

opinion that the petitioner can be given some time to pay off

the amounts in instalments. Accordingly, the writ petition is

disposed of with the following directions:

The petitioner shall pay an amount of Rs.5 lakhs within

one month from today. The balance amount shall be paid in

six equal monthly instalments starting from 1.11.2008. Every

subsequent instalment shall be paid on the first working day of

every succeeding month. If the petitioner pays the initial

amount of Rs.5 lakhs and the instalments in time without

default, further proceedings under the Act shall be kept in

abeyance. However, if the petitioner commits default in

payment of either the Rs.5 lakhs or any of the subsequent

instalments, it would be open to the respondents to continue

proceedings as now initiated without having to issue any fresh

notice of proceedings in that regard. If the petitioner submits

a proposal for One Time Settlement, the bank shall consider

the same in accordance with the policy and the guidelines

applicable to the bank.

S. SIRI JAGAN, JUDGE
Acd

W.P.(c)No.21723/08 3