HAMSA HAJI K. S/O. MOHAMMED HAJI Vs. THE MALAPPURAM DISTRICT CO-OP. BANK LTD. AND THE AUTHORISED OFFICER (GENERAL MANAGER)

JUDGEMENT

(1.) APPEAL is filed against judgment of the learned Single Judge granting ten equal monthly instalments to the appellant to clear the arrears of loan taken from the first respondent -Bank which was Rs. 2,84,106/ - as on 7.11.2009. We have heard counsel appearing for the appellant and Standing Counsel appearing for the first respondent. The loan of Rs. 2 lakhs was taken by the appellant on 22.10.2005. However, appellant did not make any payment and consequently recovery was initiated. Under interim orders of this Court, appellant paid Rs. 50,000/ - and the liability shown above is after reckoning the payment of the said amount. Counsel for the appellant submitted that the first respondent is charging fleecing rate of interest at 18% and on account of default, additional penal charges are levied, that too at compounded rate. We feel interest charged at 18% itself is a fairly high rate and therefore, appellant can be exempted from payment of penal rates, if appellant makes payment within a reasonable time which we fix at 30th March, 2010. It is stated that petitioner has already paid one instalment pursuant to judgment of the learned Single Judge. The average monthly instalment under the impugned judgment is around Rs. 30,000/ - which a defaulter can pay only if he has substantial regular income. Appellant admittedly is not a regular income earner and therefore, he has to necessarily make some sacrifice by way of liquidation of some asset to clear the arrears is his case. Counsel submitted that if reasonable time is granted, appellant will clear the entire arrears. Standing Counsel appearing for the first respondent submitted that any relief granted by this Court should be on strict conditions. Considering the contention of both sides, we dispose of the Writ Appeal by modifying the judgment as follows:

(2.) SINCE the learned Single Judge has directed the Bank to consider reduction of interest and for the sake of finality, alternately we direct the Bank to settle liability with simple interest at 15% p.a. after adjusting payment already made as stated above, if appellant remits the entire liability with interest at the above rate on or before 10th February, 2010.