Allowed

Smt.Suma Mohan v. Bank of Maharashtra

Kerala HC11 Sept 2012WP(C)/5337/2012

Case brief

AI extract

What is this about?

In a writ petition regarding defaulted housing and other loan accounts under SARFAESI proceedings, the Court directed the petitioner to clear liabilities. Upon compliance, the Court ordered the bank to regularize loans and return deposited sale proceeds, while awarding compensation to the property purchaser.

What did the court decide?

Petitioner to clear defaulted liabilities; bank to regularize loans and return deposited sale proceeds; bank to pay Rs.15,000 as compensation to purchaser to extinguish his claims.

Smt.Suma Mohan Vs Bank of Maharashtra — 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 11TH DAY OF SEPTEMBER 2012/20TH BHADRA 1934

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WP(C).No. 5337 of 2012 (N)

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PETITIONER(S):

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SMT.SUMA MOHAN, AGED 45 YEARS W/O. K.K.MOHAN, KONIKKARA HOUSE, THALAVANIKKARA THALORE, THRISSUR.

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BY ADV. SRI.DILIP J. AKKARA

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RESPONDENT(S):

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1. BANK OF MAHARASHTRA

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REPRESENTED BY CHIEF MANAGER & AUTHORISED OFFIFER

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CHENNAI REGIONAL OFFICE, NO.4 SIVAGNANAM ROAD

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T. NAGAR, CHENNAI 600017

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2. MANAGER, THE BANK OF MAHARASHTRA

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THRISSUR BRANCH, T.C.6/4427

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OPP.SACRED HEART CONVENT GIRLS H.S. CONVENT ROAD

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THRISSUR 680001

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3. K.K.MOHANN, KANIKKARA HOUSE,

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THALAVANIKKARA, THALORE, THRISSUR 680306

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ADDL.R4. IMPLEADED

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V.P.THOMAS

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VELIATH HOUSE, KORATY.P.O., THRISSUR -680 308. ADDL. R4 IS IMPLEADED AS PER ORDER DATED 17/07/2012 IN IA 9762/2012.

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BY ADVS. SRI.S.B.PREMACHANDRA PRABHU SRI.BINOY VASUDEVAN SMT.P.G.BABITHA

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11-09-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WPC NO. 5337 OF 2012

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APPENDIX

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PETITIONER'S EXHIBITS

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P1: COPY OF THE COMPUTERISED STATEMENT OF ACCOUNTS OF PETITIONER DT. 11.02.2012

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P2: COPY OF THE SECTION 13(2) NOTICE PUBLISHED IN THE MALAYALA MANORAMA NEWS PAPER DT. 6.2.2012.

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RESPONDENT'S EXHIBITS: NIL

\ TRUE COPY \

PA TO JUDGE

ANTONY DOMINIC,J

W.P.(C)No.5337 of 2012

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Dated this the 11^th day of September, 2012

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JUDGMENT

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Petitioner has availed of two loans from the respondent bank. The housing loan was in default. Therefore, SARFAESI proceedings were initiated. It was at that stage, he approached this Court and this Court passed an interim order dated 05.03.2012 staying further proceedings pursuant to Ext.P2 subject to the petitioner remitting Rs.1.5 lakhs. Although, belatedly this order has been complied with, in the meantime, on 18.06.2012, the mortgaged property was sold to Rs.22.5 lakhs and was purchased by additional fourth respondent. Thereupon, the additional fourth respondent deposited ¼^th of the sale consideration with the bank.

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Subsequently, pursuant to the order dated 20.06.2012, petitioner remitted another sum of Rs.1 lakh in the housing loan account. Now what the petitioner request is that the bank may be directed to regularise the loan on his clearing the defaulted amounts, if any.

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W.P.(C).No.5337/2012

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: 2 :

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However, counsel appearing for the bank submits that both the accounts maintained by the petitioner are in default

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and according to him, in view of the guidelines issued by the Reserve Bank of India unless the other account is also regularised, the housing loan account cannot be reclassified. Insofar as the additional 4^th respondent is concerned, he is willing to give up his claims, provided he is suitably compensated.

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Petitioner is willing to regularise both the accounts. In such circumstances, I pass the following orders:

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That within one month from today, the petitioner shall clear the defaulted liabilities in both the loan accounts.

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Once payments are made, the bank will regularise the loan accounts and permit the petitioner to pay the future instalments as per the schedule already fixed.

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Once the accounts are regularised, the amount deposited by the fourth respondent will be returned.

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W.P.(C).No.5337/2012

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: 3 :

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It is directed that along with the remittances to be made to the bank for regularization of the accounts, petitioner shall make an additional deposit of Rs.15,000/- which the bank shall pay to the fourth respondent, as compensation for the loss caused to him.

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On such payment, the fourth respondent will cease to have any claim over either against the bank or against the petitioner pursuant to the sale that was conducted on 18.06.2012.

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Needless to say that in the event, the petitioner commits default in paying the amount as above, the bank will accept the balance sale consideration on the fourth respondent and conclude sale in his favour.

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Writ Petition is disposed of as above.

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ANTONY DOMINIC, JUDGE

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Smt.Suma Mohan v. Bank of Maharashtra

Case brief

What is this about?

What did the court decide?

Smt.Suma Mohan v. Bank of Maharashtra

Case brief

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