Partly allowed

Ajumma v. Chief Manager, Federal Bank

Kerala HC21 Mar 2014WP(C)/4119/2014

Case brief

AI extract

What is this about?

Bank petitioned for intervention in SARFAESI Act proceedings against borrowers defaulting on an IDR.5 lakh loan. Court granted a one-time opportunity to clear arrears in four equal monthly installments to save the property, placing revenue recovery proceedings in abeyance subject to strict compliance.

What did the court decide?

Petitioners directed to clear overdue amount in four equal monthly installments by 15.04.2014; revenue recovery proceedings stayed pending compliance.

Ajumma Vs Chief Manager, Federal Bank — Banking and Recovery | Kerala HC (2014)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON

¶4

FRIDAY, THE 21ST DAY OF MARCH 2014/30TH PHALGUNA, 1935

¶5

WP(C).No. 4119 of 2014 (L)

¶6

PETITIONER(S) :

¶7

1. AJUMMA, AGED 59 YEARS, W/O.AHAMED SHAH, PANIKAVEETIL TIRUNELLIL, KUNDALIYUR P.O. THRISSUR DISTRICT.

¶8

2. AHAMED SHAH, AGED 65 YEARS, S/O. SULAIMAN MUSALIYAR KULANGARAKATTU KURUPATHU HOUSE KUNDALIYUR P.O., THRISSUR DISTRICT.

¶9

3. SHAJEEL, S/O.AHAMED SHAH, AGED 33 YEARS, KULANGARAKATTU KURUPATHU HOUSE KUNDALIYUR P.O., THRISSUR DISTRICT.

¶10

BY ADV. SRI.K.A.HASSAN

¶11

RESPONDENT(S) :

¶12

1. MURALI KUMAR K.V. (AUTHORIZED OFFICER) CHIEF MANAGER, FEDERAL BANK,

¶13

ERNAKULAM ZONAL OFFICE- 682031.

¶14

2. THE BRANCH MANAGER, FEDERAL BANK, POKKULANGARA BRANCH, THRISSUR DISTRICT- 680001.

¶15

R1 & R2 BY ADVS. SRI.A.ANTONY, SC SMT.LEELAMMA ANTONY

¶16

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21-03-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶17

¶18

...2/-

¶19

WP(C).No. 4119 of 2014 (L)

¶20

APPENDIX

¶21

PETITIONERS' EXHIBITS :

¶22

EXHIBIT-P1TRUE COPY OF THE NOTICE DATED 03/02/2014 FROM THE ADVOCATE COMMISSIOINER IN C.M.P 183/2014 BEFORE THE CJM COURT AT THRISSUR.

¶23

EXHIBIT-P2TRUE COPY OF THE STATEMENT OF PAYMENT IN THE LOAN ACCOUNT NO.12527600556565 OF THE FEDERAL BANK, POKKULANGARA BRANCH, THRISSUR.

¶24

EXHIBIT-P3THE ORIGINAL MEDICAL CERTIFICATE DATED 17.2.14.

¶25

EXHIBIT-P4THE TRUE COPY OF THE RECEIPT DATED 17.2.14.

¶26

RESPONDENT(S)' EXHIBITS : NIL

//TRUE COPY//

P.S. TO JUDGE

P.R. RAMACHANDRA MENON, J.

¶31

W.P.(C)No.4119 OF 2014

¶32

Dated this the 21^st March, 2014

¶33

J U D G M E N T

¶34

The petitioners had availed a loan of Rs. 5 lakhs from

¶35

the respondent Bank/Federal Bank in the year 2009 by creating security interest over the property in question. By virtue of the default on the part of the petitioners, the Bank proceeded with steps under the SARFAESI Act, which is sought to be intercepted in this writ petition.

¶36

The learned Counsel for the petitioners submits that the default occurred was not because of any wilful laches or deliberate negligence, but because of some unforeseen circumstances. Despite this, the learned Counsel for the petitioners submits that, the petitioners are ready and willing to clear the entire outstanding liability within a reasonable time, for which some breathing time is sought for.

¶37

The learned Standing Counsel for the respondent Bank submits that an amount of Rs.2.69 lakhs is overdue in respect of defaulted monthly installments and that an amount of more than Rs.4 lakhs is necessary to clear the entire liability. It is brought to the notice of this Court that, pursuant to the interim

¶38

W.P.(C)No.4119 OF 2014 2

¶39

order dated 11.02.2014, an amount of Rs.50000/- has been deposited to the Bank, which has been given credit to the account of the petitioners and that unless the overdue amount is cleared forthwith, the claim for regularisation is not liable to be entertained.

¶40

After hearing both the sides and also considering the particular facts and circumstances, this Court finds it fit and proper to give one more opportunity to the petitioners to save their property, In the said circumstances, the petitioners are directed to clear the overdue amount in respect of defaulted installments by way of ' four' equal monthly installments, the first of which shall be effected on or before 1 5.04.2014 , followed by similar three more installments to be effected on or before the 15^th of the succeeding months. This will be in addition to the liability of the petitioner to remit the regular monthly installments as well. Subject to the above, the revenue recovery proceedings now stated as being pursued against the petitioners shall be kept in abeyance. It is made clear that, if any default is committed by the petitioners in remitting any of the four installments towards the overdue amount, as above or if

¶41

W.P.(C)No.4119 OF 2014

¶42

¶43

any two consecutive defaults are made in respect of the regular monthly installments, the respondent bank will be at liberty to proceed with coercive steps from the stage where it stands now for realisation of the amount in a lump

¶44

The Writ Petition is disposed of as above.

¶45

P.R.RAMACHANDRA MENON JUDGE

¶46

Ajumma v. Chief Manager, Federal Bank

Case brief

What is this about?

What did the court decide?

Ajumma v. Chief Manager, Federal Bank

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

Afsal.K.H Vs the South Indian Bank Ltd.

Vilakkudy Grama Panchayat Vs M.Geevarghese

Vimal Chittilappally Vs the Regional Transport Officer

M/S Larsen & Toubro Ltd. Vs the State of Kerala

Prasanth Vs the Authorised Officer

T.B Swamidasan Vs Kerala Water Authority