Allowed

Pushpa R. v. the Chief Manafger.the Authorised Officer, the Federal Bank Ltd.

Kerala HC10 Nov 2014WP(C)/21552/2014

Case brief

AI extract

What is this about?

In this writ petition, the court permitted the petitioner, a defaulter in a cash credit loan facility, to clear the entire outstanding liability via equal monthly installments. Consequently, the court kept recovery proceedings initiated under the SARFAESI Act in abeyance, with a warning that any further default would revoke this stay.

What did the court decide?

Permitted the petitioner to clear the entire outstanding liability via ten equal monthly installments; kept recovery proceedings under SARFAESI Act in abeyance pending compliance.

Pushpa R. Vs the Chief Manafger.the… — Contract and Commercial Disputes | Kerala HC (2014)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON

¶4

MONDAY, THE 10TH DAY OF NOVEMBER 2014/19TH KARTHIKA, 1936

¶5

WP(C).No. 21552 of 2014 (T)

¶6

PETITIONER(S) :

¶7

PUSHPA R., AGED 43 YEARS, W/O.JAYALAL.D, THADASSERIL HOUSE, KOZHIMALA (P.O), THIRUVALLA, PATHANAMTHITTA DISTRICT.

¶8

BY ADV. SRI.C.B.SREEKUMAR

¶9

RESPONDENT(S) :

¶10

THE CHIEF MANAFGER / AUTHORISED OFFICER, THE FEDERAL BANK LTD., THOTTABHAGOM BRANCH, GROUND FLOOR, MELEKAYIL BUILDING, THOTTABHAGOM (P.O), KAVIYOOR, THIRUVALLA, PATHANAMTHITTA DISTRICT, PIN-689 541.

¶11

BY ADVS. SRI.A.ANTONY SMT.LEELAMMA ANTONY

¶12

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10-11-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶13

Msd.

¶14

WP(C).No. 21552 of 2014 (T)

¶15

APPENDIX

¶16

PETITIONER(S)' EXHIBITS

¶17

EXT.P1 : TRUE COPY OF THE NOTICE UNDER SECTION 13(2) OF THE SECURITISATION RECONSTRUCTION OF FINANCIAL ASSETS & ENFORCEMENT OF SECURITY INTEREST ACT, 2002 DATED 17-04-2014

¶18

EXT.P2 : TRUE COPY OF THE POSSESSION NOTICE UNDER SECTION 13(4) OF THE SECURITISATION RECONSTRUCTION OF FINANCIAL ASSETS & ENFORCEMENT OF SECURITY INTEREST ACT, 2002 DATED 04-07-2014

¶19

EXT.P3 : TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE RESPONDENT DATED 05-08-2014.

¶20

RESPONDENT(S)' EXHIBITS

NIL

//TRUE COPY//

P.A.TO JUDGE.

Msd.

P.R. RAMACHANDRA MENON J.

¶26

¶27

W.P.(C) No. 21552 of 2014

¶28

¶29

Dated, this the 10^th day of November, 2014

¶30

JUDGMENT

¶31

The petitioner availed a cash credit facility loan of Rupees One Crore Fourty Lakhs under the CC-PRIORITY BLAPS SME Scheme from the respondent Bank on 28.08.2013, creating security interest over the property in question. Because of the adverse circumstances, the repayment could not be effected on time, as scheduled, which made the petitioner a defaulter and the Bank proceeded with steps under the SARFAESI Act, after declaring the account as 'NPA', which made the petitioner to approach this Court by filing this writ petition.

¶32

The learned counsel for the petitioner submits that the default was never wilful and that earnest efforts are being taken to clear the entire overdue amount. It is stated that the petitioner shall continue to effect the payment without fail, simultaneously pointing out that, there is absolutely no dispute whatsoever with regard to the rights and liberties of the Bank.

¶33

The learned counsel appearing for the respondent Bank submits that as on date a sum of Rs. 1.68 Crores is outstanding

¶34

W.P.(C) No. 21552 of 2014

¶35

: 2 :

¶36

towards the loan account. The learned counsel for the petitioner submits that the petitioner is ready and willing to clear the entire outstanding amount towards the loan account, if some breathing time is provided in this regard by way of reasonable installments.

¶37

After hearing both the sides and considering the particular facts and circumstances, the petitioner is permitted to clear the ' entire outstanding liability ' amount by way of 'ten' equal monthly installments, the first of which shall be effected on or before the 15^th of December 2014, followed by similar installments to be effected on or before the 15^th of the succeeding months. Subject to this, the recovery proceedings initiated against the petitioner shall be kept in abeyance. It is made clear that, if the petitioner commits any default in remitting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump from the stage where it stands now.

¶38

The Writ Petition is disposed of.

¶39

Sd/-

¶40

P. R. RAMACHANDRA MENON, (JUDGE)

¶41

kmd

Pushpa R. v. the Chief Manafger.the Authorised Officer, the Federal Bank Ltd.

Case brief

What is this about?

What did the court decide?

Pushpa R. v. the Chief Manafger.the Authorised Officer, 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

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Antony K.R Vs N.a.Kripa

P.K.Ashraf Vs Thangavelu

Rajagopalan T.N. Vs State of Kerala

Sangeetha Vijoy Arora Vs K.Ramachandran

Musafar Ahammed Vs University of Calicut

Ashok A.M. Vs Transport Commissioner