Petitioner challenged bank's demand for new collateral after refusal to accept mortgaged property. Court extended notice period for account continuation pending loan takeover by Federal Bank.
Petitioner permitted to continue operation of bank account till 31/12/2014 within sanctioned limit pending loan takeover.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE
TUESDAY, THE 16TH DAY OF SEPTEMBER 2014/25TH BHADRA, 1936
WP(C).No. 21400 of 2014 (Y)
PETITIONER :
K.V. DAMODARAN NAIR,
S/O. KANNAN NAIR, AGED 59 YEARS, BUSINESS PROPRIETOR M/S.MANOOB AGENCIES, MUNAVEER NAGAR, TRIKARIPUR HOSDURG TALUK, KASARAGOD DISTRICT.
BY SENIOR ADVOCATE SRI.GRASHIOUS KURIAKOSE BY ADVS.SRI.M.M.ANTO
SRI.GEORGE MATHEWS
RESPONDENTS :
1. THE CHIEF MANAGER, STATE BANK OF INDIA, PAYYANNUR BRANCH, P.O.PAYYANNUR - 670 307.
2. THE REGIONAL MANAGER
R1 & R2 BY SENIOR ADVOCATE SRI.K.K.CHANDRAN PILLAI BY ADV. SMT. S. AMBILY
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16-09-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
Mn
...2/-
WP(C).No. 21400 of 2014 (Y)
APPENDIX
PETITIONERS' EXHIBITS :
EXHIBIT P1 : TRUE COPY OF THE STATEMENT OF ACCOUNT DATED 04.08.2014.
EXHIBIT P5 : TRUE COPY OF THE LAWYER NOTICE DATED 04.08.14
RESPONDENT(S)' EXHIBITS : NIL
//TRUE COPY//
P.S. TO JUDGE
Mn
A.MUHAMED MUSTAQUE, J.
Dated this the 16th day of September , 2014
JUDGMENT
The petitioner has obtained cash credit facilities from the respondent Bank by offering the property as security. The petitioner has approached this Court aggrieved by Ext.P2. It is mentioned in Ext.P2 that the secured asset was earlier mortgaged to the State Bank of Travancore for availing credit facilities and the same was settled with the intervention of court. Therefore, the Bank is unable to accept the property as security. The petitioner was, therefore, asked to provide other collateral security for continuing operation of the account. The petitioner was directed to furnish such collateral security on or before 31/3/2014. It is also stated in Ext.P2 that if the petitioner is unable to furnish another collateral security, the petitioner shall close the account by 31/3/2014.
W.P.(c).No.21400 of 2014 : 2 :
is being provided by the Federal Bank, his account will be closed.
submitted that reasonable time can be given to the petitioner to make arrangement for take over of the loan by the Federal Bank.
The writ petition is disposed of as above.
Sd/- A.MUHAMED MUSTAQUE, Judge.
dpk
/True copy/ PS to Judge.
2 issues framed by the court
Whether the petitioner can be permitted to continue operation of his bank account pending takeover of the loan by another bank.
Whether the bank can close the account immediately upon failure to provide collateral security.
K.V. DAMODARAN NAIR
THE CHIEF MANAGER, STATE BANK OF INDIA, PAYYANNUR BRANCH
THE REGIONAL MANAGER, STATE BANK OF INDIA, REGIONAL BUSINESS OFFICE NEAR S.N. PARK, KANNUR
A.MUHAMED MUSTAQUE
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
