IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 16289 of 2010(I)
1. M.C. MOHANAN, S/O. LATE CHELLAPPAN,
... Petitioner
Vs
1. CANARA BANK, BANK ROAD BRANCH,
... Respondent
2. SMT. CHANDRAMATHI,
For Petitioner :SRI.T.B.SHAJIMON
For Respondent : No Appearance
The Hon'ble MR. Justice P.R.RAMACHANDRA MENON
Dated :09/06/2010
O R D E R
P.R.RAMACHANDRA MENON, J
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WP(C) NO. 16289 OF 2010
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Dated this the 9th day of June, 2010
JUDGMENT
The petitioner stood as a guarantor to the loan availed by the 2nd
respondent from the 1st respondent creating security interest over the
property in question but since the repayment was not effected on time, the
Bank declared the account as ‘NPA’ and proceeded with steps under the
SARFAESI Act, which forms the subject matter of challenge in this Writ
Petition.
2. The learned counsel for the petitioner submits that, the
petitioner has approached the Bank seeking for the benefit of ‘OTS’ or to
enable the petitioner to clear the entire amount by way of reasonable
instalments. The learned counsel for the Bank submits on instructions that
the total outstanding liability in respect of loan transaction is about 6.85
lakhs and that the Bank is ready and willing to settle the payment by ‘OTS’
amount of Rs.6.4 lakhs.
3. After considering the facts and circumstances, this Court finds
it fit and proper to permit the petitioner to clear the entire liability in a
phased manner. Accordingly, the petitioner is permitted to clear the entire
loan account by way of ‘six’ equal monthly instalments, the first of which
shall be effected on or before the 30th of this month, to be followed by
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WP(C) No. 16289/2010
similar instalments to be effected on or before the 30th of the succeeding
months. Subject to this, the recovery proceedings stated as being pursued
against the petitioner shall be kept in abeyance. It is also made clear that, if
any default is committed by the petitioner in satisfying the overdue amount
as above, the respondent Bank will be at liberty to proceed with further
steps for realisation of the entire amount in a lump sum, by pursuing such
exercise from the stage where it stands now. The petitioner is also at liberty
to approach the Bank for availing the benefit of settlement as submitted
before this Court by remitting a total sum of Rs.6.2 lakhs in a lump sum.
The Writ Petition is disposed of accordingly.
P.R.RAMACHANDRA MENON
JUDGE
dnc