The petitioner Bank has filed the above writ petition challenging Ext.P3 order, passed by the Joint Registrar, the 3rd respondent herein. The 3rd respondent has passed the said order on an application made by the respondents 1 and 2 who are borrowers from the petitioner Bank. The respondents 1 and 2 claimed Time Settlement under Circular No.59/2006 produced herein as Ext.P1. The petitioner Bank submits that as per clause 3 of the Circular, any person who has not settled the loan despite being able to do so and who has deliberately defaulted the installments would not be entitled to such relief. The petitioner Bank would contend that on the petitioner's enquiry, the respondents 1 and 2 are found to be capable of settling the arrears and WPC.No.17697/2007 : 2 : hence the respondents are deemed to have deliberately defaulted the loan amount. Ext.P3 directed the petitioner Bank to grant One Time Settlement Scheme. If the OTS scheme, as per Ext.P3, has been satisfied by the respondents 1 and 2, the petitioner Bank cannot seek for any further recovery from respondents 1 and 2. However, if no settlement is made, the petitioner Bank would be entitled to proceed against the borrowers and sureties for recovery of the amounts as originally agreed upon.
Writ petition is disposed of.
Sd/-
(K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge