The 1st petitioner availed an educational loan of ₹2 lakhs from the 2nd respondent Bank in the year 2006. 2nd petitioner is the father of the 1st petitioner. As the 1st petitioner could not secure the desired job in the specified time and due to the crop failure in the agricultural activities pursued by the 2nd petitioner, the repayment could not be effected promptly, when the respondent Bank proceeded against the petitioners by resorting to the remedy under the Revenue Recovery Act, which in turn is under challenge in this writ petition.
2. The learned counsel for the petitioners submits that, the liability now sought to be cleared by invoking the machinery under the RR Act is barred by limitation and under the said circumstance, the same is not liable to be recovered from the petitioners now, as per the decision rendered by the Apex Court in State of Kerala v. Y.R. Kalliyanikutty (1999 (2) KLT 146 SC).
3. The learned counsel for the respondent Bank submits on instructions that, the idea and understanding of the petitioners is quite wrong and misconceived. The loan for educational purpose was availed in the year 2006 and the course was completed in the year W.P.C. No. 30293 of 2014 -2-
2011. Now the concerned borrower has obtained an employment and earning substantially as a 'Nurse'. The learned counsel also points out that, absolutely no payment has been effected under the loan account and when demand was placed by the respondent Bank two years ago, the petitioners executed a revival letter on 15.2.2012. Still, no amount was paid, which made the respondent Bank to make request to the revenue authorities for immediate steps.
4. With regard to the dispute as to the total outstanding liability, the learned counsel submits that, figures given in Exts. P1/P2 do not include interest for the entire period, simultaneously adding that, the Bank was prevented from proceeding with further steps by virtue of the 'Moratorium' declared by the Government in respect of Education Loan and the petitioner is liable to pay interest for the entire period. The total outstanding amount to clear the liability, is nearly ₹ 3,89,059/-. The learned counsel for the petitioners seeks for some breathing time to clear the liability in a phased manner.
5. After hearing both the sides, the petitioners are set at liberty to clear the entire outstanding liability by way of 'eight' equal monthly instalments, the first of which shall be effected on or before the 30th day of November, 2014; followed by similar instalments to be effected on or before the 30th of succeeding months. Subject to this, the W.P.C. No. 30293 of 2014 -3-
coercive proceedings being pursued against the petitioners shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to repayment of the entire liability as above, it will be open for the respondent Bank to proceed against the petitioners for realization of the entire amount in a lump, from the stage where it stands now. The respondent Bank shall give a statement of accounts, showing all the relevant figures with regard to the liability towards the principal amount, interest and under such other heads, if any, to the petitioners within two weeks from the date of remittance of the 1st instalment as aforesaid.
The petitioners shall produce a copy of the judgment along with a copy of the writ petition before the concerned respondent for further steps. The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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