IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 16755 of 2008(T)
1. M/S. DALE VIEW CHARITABLE SOCIETY,
... Petitioner
Vs
1. CENTRAL BANK OF INDIA, REP. BY ITS
... Respondent
2. THE SENIOR MANAGER, CENTRAL BANK
For Petitioner :SRI.D.KISHORE
For Respondent :SRI.DEVAN RAMACHANDRAN
The Hon'ble MR. Justice S.SIRI JAGAN
Dated :17/07/2008
O R D E R
S. SIRI JAGAN, J.
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W.P.(C)No.16755 OF 2008
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Dated this the 17th day of July, 2008
JUDGMENT
The petitioner challenges proceedings under the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act 2002. The petitioner
submits that they are prepared to pay the entire defaulted
instalments with interest and costs and they are prepared to
undertake to pay the future instalments as per the loan
agreement without default on the due dates.
2. This is stoutly opposed by the learned Standing
Counsel for the respondents. He would point out that once
account is declared as NPA, the entire amount becomes due as a
whole and the bank cannot permit the petitioner to pay the
instalments as per original loan agreement, by regularising the
account on payment of defaulted instalments.
3. I have considered the rival contentions in detail. At
the time of admission, I had directed the petitioner to pay an
amount of Rs.25 lakhs within one month. The petitioner has
W.P.(c)No.16755/08 2
promptly paid the same.
In the above circumstances, I am inclined to direct the
respondents to grant some indulgence to the petitioner in the
matter of regularisation of their loan account and payment of
future instalments as per the loan agreement. Accordingly,
this writ petition is disposed of with the following directions.
If the petitioner pays the balance amounts, if any due
after adjusting the Rs.25 lakhs for paying off the defaulted
instalments with interest and costs within one month, the
respondents shall regulrise the loan accounts of the petitioner.
The petitioner shall thereafter pay the future instalments as
per the loan agreement on the due dates mentioned in the
loan agreement without fail. If the petitioner complies with
the above direction, further proceedings shall be kept in
abeyance. However, if the petitioner fails to pay the amount,
if any, required to regularise the loan account or any of the
future instalments on the due date, it would be open to the
respondents to continue proceedings as now initiated without
having to issue any fresh notice or proceedings in that regard.
I further make it clear that if the Rs.25 lakhs paid by the
petitioner is more than the amounts required to regularise the
W.P.(c)No.16755/08 3
loan account as directed above, the balance shall be adjusted
against the future instalments.
S. SIRI JAGAN, JUDGE
Acd