Dismissed

K.M.Rajan v. Chief Manager, Federal Bank

Kerala HC1 Apr 2013WP(C)/5822/2013

Case brief

AI extract

What is this about?

This court addressed a writ petition filed by a borrower facing SARFAESI proceedings due to loan default. The court held that loan regularisation is contingent upon clearing defaulted dues via specified instalments, allowing recovery action to be stayed pending payment.

What did the court decide?

Petitioner directed to clear defaulted dues in two monthly instalments; loan to be regularised upon compliance and recovery action stayed during payment.

K.M.Rajan Vs Chief Manager, Federal Bank — Banking and Recovery | Kerala HC (2013)

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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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MONDAY, THE 1ST DAY OF APRIL 2013/11TH CHAITHRA 1935

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WP(C).No. 5822 of 2013 (C)

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PETITIONER(S):

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

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K.M.RAJAN AGED 42 YEARS S/O. ACHUTHAN NAIR, KORAMANGALAM KUNNIL HOUSE MATTANODE.P.O., ATHIYODI, KOZHIKODE DISTRICT.

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BY ADVS.SRI.M.B.PRAJITH SRI.M.T.THOMAS

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RESPONDENT(S):

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

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1. CHIEF MANAGER, FEDERAL BANK AUTHORISED OFFICER) FEDERAL BANK LTD. KOZHIKODE REGIONAL OFFICE PIN-673525.

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2. FEDERAL BANK, MUTTANTHARA BRANCH, KAYANNA BAZAAR .P.O., PERAMBRA KOZHIKODE DISTRICT PIN-673525. REPRESENTED BY ITS MANAGER.

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R2 BY ADV. SRI.V.J.JOSEPH R2 BY ADV. SMT.M.V.LIGI

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01-04-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WPC NO.5822/13

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APPENDIX

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PETITIONER'S EXHIBITS

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EXT.P1 A TRUE COPY OF THE SAID NOTICE DATED 4-7-2011

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EXT.P2 A TRUE COPY OF THE PASSBOOK OF THE PETITIONER.

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EXT.P3 A TRUE COPY OF THE NOTICE GIVEN BY THE ADVOCATE

COMMISSIONER.

//True Copy//

PA to Judge

ANTONY DOMINIC, J. ================ W.P.(C) NO. 5822 OF 2013

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

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Dated this the 1^st day of April, 2013

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J U D G M E N T

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Heard the learned counsel for the petitioner and the learned counsel for the respondent Bank.

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Petitioner availed of a housing loan from the respondent Bank. Default was committed and therefore SARFAESI proceedings are initiated. Finally the Bank obtained an order from the Chief Judicial Magistrate Court, Kozhikode and the Advocate Commissioner appointed has issued Ext.P3 notice. It is at that stage this writ petition is filed with a prayer to allow the petitioner to get the loan regularised.

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Although the learned counsel for the respondent Bank sought to justify the impugned action, I do not think it necessary for this Court to go into that issue for the reason that the petitioner is also not seeking to get the proceedings invalidated, but is only seeking to get the loan regularised. Such a request of the petitioner can be considered only if the petitioner clears the defaulted dues.

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Therefore, I direct the petitioner to clear the defaulted

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WPC.No.5822/13

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:2 :

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dues in two equal monthly instalments. The first instalment shall be paid on or before 12/4/13 and the second instalment shall be paid on or before 12/5/13. Along with the aforesaid instalments, the petitioner should also pay the current EMI. If payments are made as above, the loan will be regularised and the petitioner will be allowed to pay the balance liability as per the loan agreement. Subject to payment as above, coercive action initiated will stand stayed and in case default is committed, Bank will be free to continue with the recovery action already initiated.

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Writ petition is disposed of as above.

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Sd/-

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ANTONY DOMINIC, JUDGE

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K.M.Rajan v. Chief Manager, Federal Bank

Case brief

What is this about?

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K.M.Rajan v. Chief Manager, Federal Bank

Case brief

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