JOSE JOSEPH v. THE JOINT REGISTRAR

K. PADMANABHAN NAIR, J.= = = = = = = = = = = = = = = = = = = = = = = = =W.P(C). NO. 1485 OF 2007= = = = = = = = = = = = = = = = = = = = = = = = =Dated this the 14th day of February, 2007J U D G M E N T ---------------------------- Petitioners had availed a loan of Rs.2,00,000/- from the thirdrespondent Bank. They committed default in repayment of theloan amount. Bank initiated action for realisation of the amountby sale of properties of petitioners. Bank filed ARC No.436 of2002 and an award was passed in the said proceedings on20.10.2004. Bank also filed Execution Petition No.185 of 2006. Itis at that stage, this Writ Petition is filed. At the time of admissionthis Court stayed the sale of the properties on condition thatpetitioners remit a sum of Rs.25,000/-.2.Learned counsel appearing for the petitionerssubmitted that they are entitled to get the benefit of One TimeSettlement Scheme and substantial amounts are to be written off. Learned Standing Counsel for the Bank had submitted that loanwas availed not for agricultural purposes but for commercialpurposes and since loanees committed default, proceedings wereinitiated and an award was passed as early as on 20.10.2004. It W.P(C) NO. 1485 OF 2007-: 2 :-is also argued that in case petitioners are ready to repay theamount, it will waive the penal interest and petitioners need onlypay interest at the rate of 14% from the date of award. It is alsosubmitted that in spite of such a specific offer, petitioners did notrepay any amount, but approached this Court. It is furthersubmitted that petitioners are wilful defaulters and in such casethis Court may not interfere with the matter. It is also submittedthat principal debtors, utilising the loan taken, have purchasedproperties in the name of their son so as to defeat the rights ofthe Bank.3.I do not think it necessary to consider the rivalcontentions. After hearing both sides, I am of the view that onemore opportunity can be given to the petitioners to get someconcession in repaying the loan amount. In case petitionersdeposit a sum of Rs.1,50,000/- within one month from today andmake an application seeking time to clear the arrears, the Bankshall honour it and shall not realise any penal interest and onlycharge interest at the rate of 14% from the date of award. TheBank shall also consider whether it is possible to give six W.P(C) NO. 1485 OF 2007-: 3 :-instalments to the petitioner to pay off the balance of arrears.In the result, Writ Petition is disposed of in the followingmanner: Petitioners are directed to deposit Rs.1,50,000/- beforethe third respondent within one month from today and make anapplication seeking time to clear the arrears. On such depositand receipt of the application, the Bank shall waive the penalinterest and charge interest only at the rate of 14% from the dateof award. Bank shall also consider whether the petitioners can beallowed to deposit the arrears in six equal monthly instalments.In case petitioners fail to comply with the conditions orderedabove, Bank is free to proceed with the proceedings alreadyinitiated by it.K. PADMANABHAN NAIR, JUDGE.vsv K. PADMANABHAN NAIR, J.================================. R.P. NO.================================O R D E R -------------------------------------------------------4TH JANUARY, 2007