Disposed

Asokan v. the Kollam Co-Operative Urban Bank Ltd.

Kerala HC18 Dec 2014WP(C)/27087/2014

Case brief

AI extract

What is this about?

The petitioners, defaulting borrowers, approached the Court under the SARFAESI Act. The High Court allowed them to clear defaulted installments via six monthly instalments, keeping recovery proceedings in abeyance pending compliance.

What did the court decide?

Petitioners directed to satisfy overdue amount via six equal monthly installments; recovery proceedings kept in abeyance.

Asokan Vs the Kollam Co-Operative Urban Bank Ltd. — 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 18TH DAY OF DECEMBER 2014/27TH AGRAHAYANA, 1936

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WP(C).NO. 27087 OF 2014 (I)

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PETITIONER(S):

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1. ASOKAN, AGED 46 YEARS S/O.CHANDRASENAN, KANDIVILA VEEDU, MYLOM VILLAGE KOTTATHALA (PO), KOTTARAKKARA, KOLLAM DISTRICT.

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2. ANANDAN, AGED 48 YEARS S/O.CHANDRASENAN, KANDIVILA VEEDU, MYLOM VILLAGE KOTTATHALA (PO), KOTTARAKKARA, KOLLAM DISTRICT.

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3. OMANA, AGED 68 YEARS W/O.CHANDRASENAN, KANDIVILA VEEDU, MYLOM VILLAGE KOTTATHALA (PO), KOTTARAKKARA, KOLLAM DISTRICT.

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BY ADVS.SRI.M.V.THAMBAN

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SRI.R.REJI SMT.THARA THAMBAN SRI.B.BIPIN SRI.ARUN BOSE

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RESPONDENT(S):

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1. THE KOLLAM CO-OPERATIVE URBAN BANK LTD NO.1909 AT KOTTARAKKARA, KOLLAM DISTRICT, PIN-691 506 REPRESENTED BY ITS SECRETARY.

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2. THE SECRETARY KOLLAM CO-OPERATIVE URBAN BANK LTD. NO.1909 AT KOTTARAKKARA, KOLLAM DISTRICT. PIN-691 506.

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3. ARBITRATOR -CUM-SALES OFFICER KOLLAM CO-OPERATIVE URBAN BANK LTD. NO.1909 AT KOTTARAKKARA KOLLAM DISTRICT. PIN-691 506.

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R1 TO R3 BY SMT.DEEPA.V, SC

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18-12-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).NO. 27087 OF 2014 (I)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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EXT. P1TRUE COPY OF THE CARD ISSUED BY THE BANK ON 27.08.2012. EXT. P2TRUE COPY OF THE DISCHARGE SUMMARY DATED 26.09.2014 ISSUED FROM THE AMRITA INSTITUTE OF MEDICAL SCIENCES AND RESEARCH CENTRE, PONNEKKARA, KOCHI.

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EXT. P3TRUE COPY OF THE NOTICE DATED 29.09.2014 ISSUED BY THE ADVOCATE COMMISSIONER.

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RESPONDENT'S EXHIBITS: NIL

/TRUE COPY/

P.A. TO JUDGE

P.R. RAMACHANDRA MENON, J.

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W.P(C). No. 27087 of 2014

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Dated this the 18^th day of December, 2014

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J U D G M E N T

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The petitioners availed a 'loan' of Rs.3,00,000/- (Rupees three lakhs only) from the respondent Bank in the year 2010, on the strength of security interest created over the property in question. Since the repayment could not be effected as scheduled, the Bank proceeded with steps under the SARFAESI Act, which made the petitioners to approach this Court by filing this writ petition.

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The learned counsel appearing for the respondent Bank submits that the total outstanding liability as on date is about Rs.3,66,790/ (Rupees three lakh sixty six thousand seven hundred and ninety only), out of which a sum of Rs.1,96,710/(Rupees one lakh ninety six thousand seven hundred and ten only) is in respect of the defaulted instalments. Pursuant to the interim order dated 16.10.2014, the petitioners satisfied Rs.40,000/-.

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The learned counsel for the petitioners submits that the default was never wilful, but because of some unforeseen circumstances and that steps are being taken, to have the

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WP(c). No.27087 of 2014 2

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'overdue' amount cleared, for which some breathing time is sought for.

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After hearing both the sides, the petitioners are directed to satisfy the 'overdue' amount in respect of defaulted instalments, by way of 'six' equal monthly instalments, the first of it shall be effected on or before the 31^st of December, 2014, followed by similar installments, to be effected on or before the last working day of the succeeding months. This shall be in addition to the liability of the petitioner to clear the regular EMIs. Subject to this, the recovery proceedings shall be kept in abeyance, for the time being and the loan account will stand regularised. It is made clear that, if any single default is committed with regard to the satisfaction of the 'overdue' as above, or if any two consecutive defaults are made with regard to the regular monthly installments, it will be open for the respondent Bank to proceed with further steps for realization of the entire amount in lump, by pursuing such steps from the stage where it stands now.

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The writ petition is disposed of.

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Sd/-

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P.R. RAMACHANDRA MENON, JUDGE.

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Asokan v. the Kollam Co-Operative Urban Bank Ltd.

Case brief

What is this about?

What did the court decide?

Asokan v. the Kollam Co-Operative Urban Bank Ltd.

Case brief

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What did the court decide?

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