Allowed

Reghunathan Nair v. the Authorised Officer

Kerala HC6 Nov 2014WP(C)/22395/2014

Case brief

AI extract

What is this about?

This petitioner filed a writ petition challenging coercive proceedings under the SARFAESI Act initiated by a co-operative bank due to loan default. The court permitted the petitioner to regularize the account by clearing overdue dues in four installments, suspending coercive measures pending compliance.

What did the court decide?

The loan account was regularised upon clear payment of the overdue amount in equal monthly installments by 30.11.2014 and 30th of succeeding months; coercive proceedings were kept in abeyance.

Reghunathan Nair Vs the Authorised Officer — Banking and Recovery | Kerala HC (2014)

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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 P.R.RAMACHANDRA MENON

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THURSDAY, THE 6TH DAY OF NOVEMBER 2014/15TH KARTHIKA, 1936

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WP(C).No. 22395 of 2014 (Y)

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PETITIONER :

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

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REGHUNATHAN NAIR ARYA BHAAN, KURUVIKONAM, IRINCHAYAM P.O., NEDUMANGAD, THIRUVANATHAPURAM.

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BY ADVS.SRI.P.SREEKUMAR SRI.SOORAJ T.ELENJICKAL SRI.B.PRASANTH

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RESPONDENTS :

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

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1. THE AUTHORISED OFFICER, NEDMANGAD CO-OPERATIVE URBAN BANK LTD, NO.3193 NEDUMANGADU P.O, THIRUVANANTHAPURAM 695 541.

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2. THE BRANCH MANAGER, NEDMANGAD CO-OPERATIVE URBAN BANK LTD, NO.3193 NEDUMANGADU P.O, THIRUVANANTHAPURAM 695 541.

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R1&R2 BY ADVS. SRI.R.S.KALKURA

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SRI.M.S.KALESH SRI.HARISH GOPINATH SMT.R.BINDU

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06-11-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 22395 of 2014 (Y)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXHIBIT P1: COPY OF THE ORDER IN MC 578/14 ON THE CHIEF JUDICIAL MAGISTRATE.

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EXHIBIT P2: COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER TO THE PETITIONER.

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EXHIBIT P3: COPY OF THE MEDICAL REPORT OF THE PETITIONER.

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EXHIBIT P4: COPY OF THE APPLICATION SUBMITTED BY THE PETITIONER FOR FINANCIAL ASSISTANCE.

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RESPONDENT(S)' EXHIBITS :

//TRUE COPY//

P.S. TO JUDGE

P.R. RAMACHANDRA MENON, J.

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W.P.(C)No. 22395 OF 2014

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Dated this the 6^th November, 2014

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J U D G M E N T

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The petitioner availed a term loan of Rs. 4 lakhs from the

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second respondent/Nedumangad Co-operative Bank in the year 2012 by creating security interest over the property in question. By virtue of the default on the part of the petitioner, the Bank proceeded with steps under the SARFAESI Act, which is sought to be intercepted in this writ petition.

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The learned Counsel for the petitioner submits that the default occurred was not because of any wilful laches or deliberate negligence, but because of some unforeseen circumstances. The learned Counsel for the petitioner submits that the petitioner does not intend to dispute the liability or to avail the statutory remedy by approaching the DRT.. It is however assured that the entire 'overdue' amount as well as regular E.M.Is will be cleared, without fail, if some breathing time is given.

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The learned Standing Counsel for the respondent Bank, on instruction, submits that a sum of Rs.1,86,482/ - is 'overdue' towards defaulted installments out of the total liability of Rs.

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W.P.(C)No. 22395 OF 2014 2

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4,39,830/-.

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After taking note of the particular facts and

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circumstances, this Court finds it fit and proper to permit the petitioner to clear the liability towards the ' overdue ' amount by way of 'four' equal monthly installments, the first of which shall be effected on or before 30.11.2014 to be followed by similar installments to be effected on or before 30^th of the succeeding months. Subject to this, the loan account will stand regularised and all coercive proceedings shall be kept in abeyance. This will be in addition to the liability to clear the regular monthly installments as well. It is further made clear that, if the petitioner commits any default in remitting the overdue amount/arrears as above or in the event of committing two consecutive defaults in respect of the regular E.M.Is payable, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire outstanding liability in a lump, pursuing such steps, from the stage where it stands now.

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The writ petition is disposed of as above.

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P.R.RAMACHANDRA MENON JUDGE

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Reghunathan Nair v. the Authorised Officer

Case brief

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Reghunathan Nair v. the Authorised Officer

Case brief

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