Allowed

Iqbal K.A v. Authorised Officer

Kerala HC14 Dec 2015WP(C)/37736/2015

Case brief

AI extract

What is this about?

This writ petition concerned a borrower defaulting on a loan and facing proceedings under the SARFAESI Act. The court allowed the petitioner to repay the balance amount in fifteen monthly installments, directing the bank to stay further proceedings pending full payment.

What did the court decide?

Petitioner permitted to pay outstanding amount of Rs.15,85,590/ with interest in 15 monthly installments; further recovery proceedings stayed.

Iqbal K.A Vs Authorised Officer — Contract and Commercial Disputes | Kerala HC (2015)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN

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MONDAY, THE 14TH DAY OF DECEMBER 2015/23RD AGRAHAYANA, 1937

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WP(C).No. 37736 of 2015 (N)

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PETITIONER:

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IQBAL K.A AGED 48 YEARS, S/O.ABDUL HAKKIM, KALARIPARAMBIL HOUSE, VANIYAKKAD MANNAM.P.O., ERNAKULAM-683 520.

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BY ADV. SRI.KISHOR B.

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RESPONDENT:

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AUTHORISED OFFICER

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FEDERAL BANK LTD., STRESSED ASSET MANAGEMENT CELL, FEDERAL TOWERS, MARINE DRIVE, COCHIN-682 031.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14-12-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 37736 of 2015 (N)

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APPENDIX

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PETITIONER'S EXHIBITS

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P1- TRUE COPY OF THE NOTICE ISSUED BY THE AUTHORISED OFFICER, FEDERAL BANK DATED 26.4.2015 TO PETITIONER.

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RESPONDENT'S EXHIBITS: NIL

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TRUE COPY

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P.A.TO JUDGE

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ANU SIVARAMAN, J.

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= = = = = = = = = = = = = W.P.(C).No.37736 of 2015 = = = = = = = = = = = = = = Dated this the 14^th day of December, 2015

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JUDGMENT

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The petitioner, who had availed of a loan from the respondent bank, defaulted in repayment of the same. Consequently, the respondent bank initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, hereinafter referred to as the 'SARFAESI Act', to recover the loan amounts. Ext.P1 is the copy of the notice issued to the petitioner under Section 13(2) of the SARFAESI Act. The learned counsel for the petitioner submits that he may given a chance to pay off the entire amounts in arrears in installments.

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I have heard the learned counsel appearing for the petitioner as also the learned Standing counsel appearing for the respondent. It is submitted that the total amount due under the loan is Rs.15,85,590/-.

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On a consideration of the facts and circumstances of the case and the submissions made across the bar, I am of the opinion that this is a fit case where the petitioner is to be permitted to remit the balance amounts outstanding to the respondent bank in installments.

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W.P.(C).No.37736 of 2015

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Therefore, this writ petition is disposed of with the following directions:-

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(i) The total amount outstanding from the petitioner to the respondent bank, as of today, is stated to be Rs.15,85,590/-. Accordingly, if the petitioner pays the said amount together with accrued interest in fifteen equal and successive monthly installments commencing from 15.01.2016, then the further proceedings initiated against him by the respondent bank shall be kept in abeyance.

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(ii) It is further made clear that if the petitioner commits two consecutive defaults in respect of payment of the installments, he will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against him from the stage at which they presently stand.

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The respondent shall furnish to the petitioner an upto-date statement so as to enable the petitioner to discharge the liability.

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Anu Sivaraman, Judge

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sj15/12

Iqbal K.A v. Authorised Officer

Case brief

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Iqbal K.A v. Authorised Officer

Case brief

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