Disposed

Sajid P.A v. the Authorized Officer,the Federal Bank Ltd.

Kerala HC9 Oct 2012WP(C)/22868/2012

Case brief

AI extract

What is this about?

In this housing loan recovery matter, the High Court held that interest disputes are not maintainable in writ petitions. Instead, the court directed the bank to entertain the petitioners' representation and directed the petitioners to discharge the liability in 12 equal monthly installments to avoid coercive action regarding mortgage properties.

What did the court decide?

Petitioners shall discharge entire liability in 12 equal monthly installments starting 30.10.2012; coercive action deferred.

Sajid P.A Vs the Authorized Officer,the Federal Bank Ltd. — Banking and Recovery | Kerala HC (2012)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE ANTONY DOMINIC

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TUESDAY, THE 9TH DAY OF OCTOBER 2012/17TH ASWINA 1934

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WP(C).No. 22868 of 2012 (G)

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PETITIONER(S):

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1. SAJID P.A., PADIYATH HOUSE, KUNNEPARAMBU ROAD, TRIKKAKARA KOCHI-30.

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2. HAZEENA SAJID,

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W/O. SAJID P.A., PADIYATH HOUSE, KUNNEPARAMBU ROAD

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TRIKKAKARA, KOCHI-30.

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BY ADVS.SRI.R.LAKSHMI NARAYAN SMT.R.RANJINI

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RESPONDENT(S):

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1. THE AUTHORIZED OFFICER,

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THE FEDERAL BANK LIMITED,

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REGD. OFFICE AT ALUVA,

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KERALA BRACH KOCHI, PARAVANA JUNCTION

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KOCHI-682002.

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2. THE FEDERAL BANK LIMITED,

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REGD OFFICE AT ALUVA, KERALA BRANCH KOCHI

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PARAVANA JUNCTION

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KOCHI-682002

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REPRESENTED BY ITS DEPUTY GENERAL MANAGER.

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3. THE CHIEF MANAGER,

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THE FEDERAL BANK LIMITED, BRANCH KOCHI

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PARAVANA JUNCTION, KOCHI-682 002.

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R1 TO R3 BY ADVS. SRI.K.C.ELDHO

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SRI.JIJO THOMAS

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION

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ON 09-10-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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...2/-

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WP(C).No. 22868 of 2012 (G)

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APPENDIX

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PETITIONERS' EXHIBITS :

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EXHIBIT P1: THE PHOTOCOPY OF THE PRINT OUT OF STATEMENT OF ACCOUNTS. EXHIBIT P2: THE PHOTOCOPY OF THE PRINT OUT OF STATEMENT OF ACCOUNTS. EXHIBIT P3: THE PHOTOCOPY OF THE ENOTICE DATED 4.7.2012. EXHIBIT P4: THE PHOTOCOPY OF THE REPRESENTATION DATED 27.8.2012. EXHIBIT P5: THE PHOTOCOPY OF THE POSSESSION NOTICE DATED 27.9.2012. RESPONDENTS' EXHIBITS : NIL

//TRUE COPY//

P.S. TO JUDGE

ANTONY DOMINIC, J.

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--------------------------------------------------

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W.P.(C) NO.22868 OF 2012(G)

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--------------------------------------------------

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Dated this the 9^th day of October, 2012

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J U D G M E N T

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Heard the counsel for the petitioners and the Standing Counsel appearing for the respondents.

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Petitioners availed of 3 housing loans from the respondent Bank. On account of the default committed SARFAESI proceedings were initiated and Ex.P3 notice under Section 13(2) was issued. The proceedings continued and have reached the stage of Ext.P5 possession notice issued by the Bank. It is at that stage, the writ petition has been filed.

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One of the objections raised by the counsel for the petitioners is that as against contractual rate of interest of 10.5% what is now demanded is 18.5% and 20.5% respectively. It is stated that the interest now charged is illegal. However, the stand taken by the Bank is that under the terms of the agreement between the parties they are entitled to revise the interest and that the interest demanded is in accordance with the agreement.

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WPC.No. 22868/2012

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:2 :

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In my view, this is a matter which is incapable of resolution in a writ petition and therefore if the petitioners are aggrieved by the rate of interest now demanded, it is open to the petitioners to make a representation to the 3^rd respondent, who on receipt thereof shall deal with it in accordance with law and orders thereon shall be passed without delay.

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In the meantime, in order to avoid further coercive action against the properties mortgaged by the petitioners, I direct that the petitioners shall discharge the entire liability due to the Bank in 12 equal monthly installments. The first installment shall be paid on or before 30.10.2012 and the subsequent installments shall be paid on or before the last working day of every succeeding month. Subject to payment as above without default, coercive action shall be deferred and in case of default Bank will be free to continue the proceedings already initiated.

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Writ petition is disposed of as above.

(ANTONY DOMINIC)

JUDGE

vi/

WPC.No. 22868/2012

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:3 :

Sajid P.A v. the Authorized Officer,the Federal Bank Ltd.

Case brief

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Sajid P.A v. the Authorized Officer,the Federal Bank Ltd.

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