Disposed

Janasakthi Educational Cultural and Charitable Trust v. the Federal Bank Ltd.

Kerala HC9 Feb 2012WP(C)/2259/2012

Case brief

AI extract

What is this about?

The court disposed of a writ petition filed by a trust society liable for a loan default. After hearing both sides, the court permitted the petitioner to discharge the liability in 12 equal monthly instalments, deferring coercive action while noting stricter terms than sought to protect the bank's interests.

What did the court decide?

Permission granted to discharge liability in 12 equal monthly instalments; first due on 28/2/12; subsequent instalments by last working day of succeeding month. Coercive action deferred.

Janasakthi Educational Cultural and Charitable Trust Vs… — Banking and Recovery | Kerala HC (2012)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR.JUSTICE ANTONY DOMINIC

¶4

THURSDAY, THE 9TH DAY OF FEBRUARY 2012/20TH MAGHA 1933

¶5

WPC.No. 2259 of 2012 (F)

¶6

PETITIONER :

¶7

JANASAKTHI EDUCATIONAL CULTURAL AND CHARITABLE TRUST PATTOTIL MARKET P.O., VELANCHIRA REPRESENTED BY JOINT SECRETARY PODIYAN V. S/O.VELAYUDHAN, KOIPPALLISSERIL, PUTHIYAVILA PATTOLI MARKET P.O.

¶8

BY ADVS.SRI.S.MOHANAN SRI.C.P.RAVIKUMAR

¶9

RESPONDENT(S):

¶10

1. THE FEDERAL BANK LTD., COLLEGE JUNCTION BRANCH, KAYAMKULAM ALAPPUZHA DISTRICT, KERALA. 2. RECOVERY OFFICER DEBT RECOVERY TRIBUNAL, 8TH FLOOR, KERALA STATE HOUSING BOARD (K.S.H.B.) BUILDING, PANAMPALLY NAGAR, COCHIN- 682036.

¶11

R1 BY ADVS. SRI.GEORGE VARGHESE (MANACHIRACKEL) SMT.LIZA P.CHERIAN R2 BY SR.GOVT. PLEADER SMT. SBOBA ANNAMMA EAPEN

¶12

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09-02-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶13

¶14

...2/-

¶15

WPC.No. 2259 of 2012 (F)

¶16

APPENDIX

¶17

PETITIONERS' EXHIBITS : EXHIBIT-P1. TRUE COPY OF THE TRUST DEED OF THE PETITIONER TRUST. EXHIBIT-P2. TRUE COPY OF THE ORDER DATED 11/10/2011 OF THE HONOURABLE DEBT RECOVERY TRIBUNAL, ERNAKULAM. EXHIBIT-P3. TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. RESPONDENTS' EXHIBITS : NIL //TRUE COPY//

¶18

P.S. TO JUDGE

¶19

¶20

ANTONY DOMINIC, J. ================ W.P.(C) NO. 2259 OF 2012

¶21

===================

¶22

Dated this the 9^th day of February, 2012

¶23

J U D G M E N T

¶24

Petitioner is a society which has established a school. Society has availed of loans from the 1^st respondent Bank. Default was committed and the Bank filed OA No.158/10 before the Debts Recovery Tribunal, Ernakulam. That application was disposed of by Ext.P2 order allowing the Bank to realise 25,54,257.42 with interest from the petitioner. Thereafter the petitioner made Ext.P3 application to the Bank requesting it to permit them to discharge the liability by paying monthly instalment of 1 lakh each. Order were not passed. It is in these circumstances the writ petition has been filed.

¶25

When the case was taken up, learned counsel for the petitioner reiterated its plea for an instalment facility as sought for in Ext.P3. It was also undertaken that an amount of `10 lakhs will be paid in July 2012. Pointing out the liability that is due, on behalf of the respondent Bank, the prayer was opposed.

¶26

Having heard both sides and also taking note of the fact that the society is running a school, I am inclined to think that

¶27

:2 :

¶28

WPC.No.2259/12

¶29

the petitioner should be given an instalment facility for discharging the liability. However, such instalments cannot be granted as sought for by the petitioner, which will be prejudicial to the Bank.

¶30

Taking note of the equities of both sides, I direct that the petitioner will be permitted to discharge the liability due to the Bank in 12 equal monthly instalments. The first instalment shall be paid on or before 28/2/12 and the subsequent instalment will be paid on or before the last working day of every succeeding month. If payment is made as above, coercive action will be deferred and in case default is committed in paying any of the instalments, Bank will be free to continue the action it has already initiated.

¶31

Writ petition is disposed of as above.

¶32

ANTONY DOMINIC, JUDGE

¶33

Janasakthi Educational Cultural and Charitable Trust v. the Federal Bank Ltd.

Case brief

What is this about?

What did the court decide?

Janasakthi Educational Cultural and Charitable Trust v. the Federal Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Kesavan Vs the Ponnani Municipality

Binu.P.N. Vs State of Kerala

Vinod Thomas Vs the Recovery Officer, Debt Recovery Trib

Sanooj Salam Vs Thecommercial Tax Officer

P.K.Shanavaz Vs the Assistant Secretary

M/S.Wipro Limited (Consumer Care & Lighting) Vs Commercial Tax Inspector