High Court Kerala High Court

M.K.Kunju Kanoth vs Punjab National Bank on 12 March, 2008

Kerala High Court
M.K.Kunju Kanoth vs Punjab National Bank on 12 March, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C) No. 33241 of 2007(G)


1. M.K.KUNJU KANOTH, AGED 75 YEARS,
                      ...  Petitioner
2. LILLY KUNJU, AGED 74 YEARS, W/O.

                        Vs



1. PUNJAB NATIONAL BANK, REP. BY
                       ...       Respondent

2. REGIONAL MANAGER,

3. SENIOR MANAGER,

                For Petitioner  :SRI.GEORGE ABRAHAM

                For Respondent  :SRI.P.K.SURESH KUMAR

The Hon'ble MR. Justice ANTONY DOMINIC

 Dated :12/03/2008

 O R D E R
                          ANTONY DOMINIC, J.

                         ===============

                    W.P.(C) NO. 33241 OF 2007 G

                    ====================


              Dated this the 12th day of March, 2008


                               J U D G M E N T

The challenge in this writ petition is against the

Securitisation proceedings initiated by the Bank.

2. It is stated that benefit of One Time Settlement

Scheme was applied for by the petitioners and that was granted,

but however, as the petitioners did not make payment of the full

amount in terms of the scheme, the benefit was recalled.

Thereupon the Bank proceeded with the Securitisation

proceedings and possession of the mortgaged property was also

taken over. It is at that stage this writ petition has been filed

mainly contending that in the matter of extending the benefit of

One Time Settlement Scheme, the Bank has violated the terms of

Ext.P13 guidelines on OTS scheme issued by the Reserve Bank of

India.

3. This contention of the petitioners is answered by the

WPC 33241/07

:2 :

respondent stating that the benefit that was extended to the

petitioners is not in terms of Ext.P13. The correctness of the

contention so raised by the Bank is evident from the terms of

Ext.P13 itself. A reading of Ext.P13 shows that the last date for

receipt of application in terms of Ext.P13 was specified as 31st of

March, 2006. Admittedly, in this case the benefit applied for and

granted was in 2007. If that be so, the benefit that is extended

is not the one that is provided for in Ext.P13 and that the

conditions of the OTS that were extended. Therefore, there is

nothing wrong with the action of the Bank in fixing the terms of

the OTS.

4. Though there is nothing on the merits of the

contentions raised, it is now pointed out that since coercive

action has been initiated against the property mortgaged by the

petitioners, if the petitioners are desirous of liquidating the

liability by paying the instalments, the petitioners may do so. In

order to enable the petitioners to clear the amount as above, I

feel the petitioners should be granted an instalment facility.

5. Accordingly, I direct that the petitioners shall clear the

WPC 33241/07

:3 :

amount that is due to the Bank in five equal monthly instalments,

first of which will be payable in the first week of April, 2008 and

the subsequent instalments will be payable in the first week of

every succeeding month. It is directed that subject to payment

as above, the Bank will defer proceedings initiated against them

and in case default is committed, it will be free to continue the

action that it has initiated.

Writ petition is disposed of as above.

ANTONY DOMINIC,JUDGE.

Rp