Prince Ignasious Polekkattu House Near Amrutha Hospital, Edappally (N), Kochi-24 vs Peoples Urban Co-op. Bank Ltd No. 51, Head Office, Thripunithura, Ernakulam District and The Assistant General Manager, Peoples Urban Co-Operative Bank Ltd. No. 51, Head Office, Thripunithura, Ernakulam District

P.R. Ramachandra Menon, J.—The petitioner is a guarantor to the loan transaction availed by one Baiju John, who has not been impleaded in the party array. The case of the petitioner is that the borrower availed a loan of Rs. 60 lakhs from the first respondent Bank creating security interest over the property to an extent of 32.300 cents of land belonging to the petitioner. After availing the loan, the borrower turned to be a defaulter, under which circumstance, the Bank proceeded with steps under the SARFAESI Act, which made the petitioner to approach this Court by filing the present writ petition. The petitioner is ready to satisfy the liability by way of installments at the rate of Rs. Two lakhs per month and the petitioner has already filed Ext.P2 representation before the Bank in this regard. The respondent Bank has filed a statement pointing out that the borrower had earlier approached this Court by filing which was disposed of by this Court as per Ext. R1(c) judgment dated 12.03.2012 in the following terms:

Within ten days from today the petitioner shall remit Rs. 10 lakhs to the Bank. If deposit is made as above, physical possession of the property taken over will be returned. If payment is made as above, the balance amount due from the petitioner also be permitted to be paid in monthly installments of 5 lakhs each. First installment shall be paid on or before 15.04.2012 and the subsequent installments shall be paid on or before 15th of every succeeding month. Subject to payment as above, coercive action be deferred and in case default is committed Bank will be free to continue the proceedings already initiated.

The learned Counsel submits that the borrower did not choose to implead the present petitioner/guarantor in the party array and exactly similar course has been pursued by the present petitioner as well in this case filed without impleading the borrower as a respondent. It is stated that the petitioner and the borrower are going hand in hand, seeking to avoid the liability under one pretext or other. It is also stated that the borrower has not satisfied the demand in tune with Ext.R1(c) judgment passed by this Court.

After hearing both the sides, this Court finds that the borrower having been given an opportunity to clear the loan account vide Ext.R1(c) judgment, similar benefit can be given to the present petitioner as well. Accordingly, the writ petition is disposed of, in the following manner. Within ten days from today, the petitioner shall remit Rs. 10 lakhs to the Bank. If deposit is made as above, physical possession of the property taken over will be returned. If payment is made as above, the balance amount due from the petitioner also be permitted to be paid in monthly installments of Rs. 5 lakhs each. First installment shall be paid on or before 30.08.2012 and the subsequent installments shall be paid on or before 30th of every succeeding month. Subject to payment as above, coercive action be deferred and in case default is committed, the Bank will be free to continue the proceedings already initiated for realisation of the amount in a lump, from the stage where it stands now.

The writ petition is disposed of.