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CATHOLIC SYRIAN BANK LIMITED versus P.G.ABHILASH, S/O.P.A.GANESH

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CATHOLIC SYRIAN BANK LIMITED v. P.G.ABHILASH, S/O.P.A.GANESH - WP(C) No. 21500 of 2007(H) [2007] RD-KL 17587 (20 September 2007)

IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C) No. 21500 of 2007(H)

1. CATHOLIC SYRIAN BANK LIMITED,
... Petitioner

Vs

1. P.G.ABHILASH, S/O.P.A.GANESH,
... Respondent

2. SARALA GANESH, W/O.P.A.GANESH,

3. THE RECOVERY OFFICER,

For Petitioner :SRI.R.BINDU (SASTHAMANGALAM)

For Respondent :SRI.K.R.SUNIL

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR

Dated :20/09/2007

O R D E R

C.N.RAMACHANDRAN NAIR, J.

WP(C) No. 21500 of 2007

Dated, this the 20th day of September, 2007



J U D G M E N T

Heard learned counsel for petitioner, learned counsel appearing for respondents 1 & 2 and learned Government Pleader for the State. This writ petition is filed by the Bank alleging delay in sale of property by the Recovery Officer. Debt due to the Bank from the defaulter is Rs. 1.23 crores. However, learned counsel for the Bank submitted that Bank is willing to forego Rs. 16 lakhs and settle liability as Rs. 1.07 crores, if respondents 1 & 2 make payment and settle liability. Learned Government Pleader reported that an amount of above Rs. 7 lakhs is due to the State towards sales tax and State has priority in recovery proceedings. Learned counsel for the respondents 1 & 2 submitted that respondents 1 & 2 have offered reasonable settlement and Bank is blocking it by demanding exorbitant rate of interest including penal interest. Obviously, since loan availed in 1999-2000 was only for Rs. 48 lakhs, the present demand shows that interest charged is exorbitant. Respondents 1 & 2 have offered payment of Rs. 80 lakhs for settlement of liability and they have offered to settle sales WP(C) No. 21500/2007 tax dues separately. I am of the view that it is for the Bank to take a practical approach by estimating the price the property will fetch if sold in auction and if there is risk of the property getting sold below Rs. 87 lakhs, to agree for the reasonable settlement offered by the debtor and allow sale of property by receiving Rs. 80 lakhs. In any case, it is for the Bank to decide and not for this Court to decide, whether the Bank should go for settlement in its own interest. However, if there is no settlement, 3rd respondent should sell the property without any delay and in that event, State dues should be first cleared and balance should be appropriated for arrears due to the petitioner-Bank. This writ petition is disposed of with the above observation.

(C.N.RAMACHANDRAN NAIR, JUDGE)

jg


Copyright

Reproduced in accordance with s52(q) of the Copyright Act 1957 (India) from judis.nic.in, indiacode.nic.in and other Indian High Court Websites

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