The Bank of India vs Baby Ranjit

P.R. Ramachandra Menon, J.—This contempt case takes its origin from the verdict passed by a Division Bench of this Court in. The Respondent herein along with his wife had availed a cash credit facility of Rs. 30 lakhs and a home loan of Rs. 16 lakhs from the Petitioner Bank creating security interest over the property. On committing default in repayment of the amount, the account was declared as ''NPA'' and notice u/s 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 was issued to the Respondent.

Subsequently the matter was settled by the parties concerned in the Lok Adalat held at Thrissur in respect of the cash credit facility while the default in respect of the other account was Cont. Case (C) No. 1306 of 2010 - 2 subsisting. When further proceedings were taken by the Bank because of the default on the part of the borrower, the Respondent filed W.P. (C) No. 19984 of 2010 before this Court wherein interference was declined which led to. After hearing both the sides, the said writ appeal was disposed of by judgment dated 29th July, 2010 whereby the Writ Petitioner/Appellant was given further time of two months from the date of the verdict so as to clear the balance amount ''in terms of the award'' failing which it was ordered that the Respondent should vacate the premises and hand over possession to the Bank. Rights and liberties were reserved in favor of the Bank to proceed with contempt against the Writ Petitioner/Appellant for violation of the directions which forms the basis of this contempt case.

During the course of hearing, learned Counsel appearing for the Respondent submits that the Respondent has already remitted a sum of Rs. 40 lakhs out of the total liability in respect of both the loans as per letter dated 12.9.2010. It is also stated that the balance amount will be cleared by the Respondent and that the Bank has been requested to extend the benefit of One Time Settlement or such other eligible concessions, which is still pending consideration before the Bank. According to the Respondent, the balance liability is only to an extent of Rs. 6 lakhs, which is disputed by the Bank and according to whom, the balance liability is nearly Rs. 9 lakhs. Learned Counsel for the Respondent submits that the Respondent, so as to prove his bona fides, would deposit a further sum of Rupees two lakhs within two weeks and that the balance amount, subject to finalization of the liability by the Bank, will be cleared within one month thereafter.

In the above circumstances, we do not find it necessary to proceed further with this contempt matter, but for recording the submissions as above. It is open for the Respondent to deposit a sum of Rupees two lakhs within two weeks as undertaken and to avail the One Time Settlement or such other benefit, if any, to be extended from the part of the Bank. The Bank shall intimate the outstanding liability to be cleared as above immediately, and it is for the Respondent to satisfy such amount within one month thereafter, as agreed. If there is any default on the part of the Respondent in clearing the liability as above, it will be open for the Bank to proceed with further steps under the relevant provisions of law.

The contempt case is closed accordingly.