Allowed

Tomy A.C v. State Bank of Travancore

Kerala HC18 Jan 2016WP(C)/101/2016

Case brief

AI extract

What is this about?

In a writ petition regarding loan default recovery under the SARFAESI Act, the High Court of Kerala allowed an application for installment repayment, stayed enforcement actions, and directed the bank to provide an updated account statement.

What did the court decide?

Petitioner ordered to pay ₹1,00,000 by 31.01.2016 and balance in eight monthly installments; recovery proceedings stayed.

Tomy A.C Vs State Bank of Travancore — Banking and Recovery | Kerala HC (2016)

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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 A.K.JAYASANKARAN NAMBIAR

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MONDAY, THE 18TH DAY OF JANUARY 2016/28TH POUSHA, 1937

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WP(C).No. 101 of 2016 (K)

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PETITIONER(S):

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1. TOMY A.C, ATHIKALATHIL HOUSE, UDAYAPURAM P.O., KODOTH, ANANDASRAM - 671 531.

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2. SALY TOMY, W/O. TOMY A.C., DO.

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BY ADV. SRI.K.I.SAGEER

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RESPONDENT:

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STATE BANK OF TRAVANCORE, HOSDURG BRANCH, REP. BY ITS AUTHORIZED OFFICER, PIN - 673 001.

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BY SRI.T.SETHUMADHAVAN (SENIOR ADVOCATE) ADV. SRI.K.JAYESH MOHANKUMAR,SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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mbr/

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WP(C).No. 101 of 2016 (K)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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P1 - A TRUE COPY OF THE NOTICE ALONG WITH E-AUCTION SALE NOTICE DT. 03.12.2015 ISSUED BY THE RESPONDENT BANK TO THE 2ND PETITIONER.

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P2 - A TRUE COPY OF THE ADVERTISEMENT PUBLISHED IN MATHRUBHUMI DAILY DT 14.12.2015.

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RESPONDENT(S)' EXHIBITS: NIL

//TRUE COPY//

P.S. TO JUDGE

mbr/

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C). No. 101 of 2016

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===================================================== Dated this the 18^th day of January, 2016

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JUDGMENT

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The petitioner, who had availed of a cash credit facility as also a housing loan from the respondent bank, defaulted in repayment of the same. Consequently, the respondent bank initiated proceedings under the Securitisation and Reconstructions 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 sale notice issued to the petitioner under the SARFAESI Act. In the writ petition, the petitioner impugns the steps initiated by the respondent bank for recovery of the loan amounts.

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I have heard the learned counsel appearing on behalf of the petitioner as also the learned Standing Counsel appearing on behalf of the respondents.

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On a consideration of the facts and circumstances of the

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case and the submissions made across the bar, I note that the sole prayer of the petitioner is to permit him to remit the balance amounts outstanding to the bank in easy installments. Taking into

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W.P.(C). No. 101 of 2016

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-2-

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account the plea of financial hardship raised by the petitioner, I dispose the writ petition with the following directions:-

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(i) The total amount outstanding in respect of the cash credit facility is stated to be Rs.5,65,214/-. Similarly, the total overdue amount, in respect of the housing loan, is stated to be Rs.1,25,500/- together with accrued interest. Accordingly, if the petitioner pays an amount of Rs.1,00,000/- on or before 31.01.2016 and the balance amount of Rs.5,90,714/together with accrued interest in eight equal and successive monthly installments commencing from 01.03.2016, and continues to keep up the regular installments as per the original loan schedule in the housing loan account, then the recovery steps initiated against him by the respondent bank shall be kept in abeyance.

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(ii) It is made clear that if the petitioner commits a default in respect of any 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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(iii) The respondent bank shall, within ten days from today, provide the petitioner with an upto-date

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-3-

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W.P.(C). No. 101 of 2016

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statement of accounts so as to enable the petitioner to discharge the liability in accordance with the directions of this judgment.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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das /18.01.2016

Tomy A.C v. State Bank of Travancore

Case brief

What is this about?

What did the court decide?

Tomy A.C v. State Bank of Travancore

Case brief

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