Partly allowed

Shajahan M S v. State Bank of Travancore

Kerala HC12 Jan 2016WP(C)/1016/2016

Case brief

AI extract

What is this about?

The High Court of Kerala addressed a writ petition by a loan defaulter challenging recovery actions initiated by a bank under the SARFAESI Act. Relying on the petitioner's plea of financial hardship, the court allowed the petition and directed the bank to stay recovery proceedings if the petitioner remits the outstanding dues in twelve monthly installments commencing from a specified date.

What did the court decide?

Bank shall keep recovery steps in abeyance if petitioner remits outstanding Rs.15,08,735/- plus interest in 12 installments commencing 05.02.2016. Bank must furnish updated dues statement within 10 da

Shajahan M S 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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TUESDAY, THE 12TH DAY OF JANUARY 2016/22ND POUSHA, 1937

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WP(C).No. 1016 of 2016 (B)

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PETITIONER :

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SHAJAHAN M.S., AGED 42 YEARS S/O.SHAJUDEEN, MUTHUKAL HOUSE, VEEYAPURAM KARTHIKAPPALLY, ALAPPUZHA.

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BY ADVS.SRI.R.SUNIL KUMAR SMT.A.SALINI LAL

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RESPONDENTS :

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1. THE MANAGER STATE BANK OF TRAVANCORE,

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MANNAR BRANCH, MANNAR ALAPPUZHA, PIN - 688 001.

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2. THE AUTHORIZED OFFICER STATE BANK OF TRAVANCORE,

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MANNAR BRANCH, MANNAR ALAPPUZHA, PIN - 688 001.

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R1 & R2 BY ADV. SRI.R.S.KALKURA, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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...2/-

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WP(C).No. 1016 of 2016 (B)

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APPENDIX

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PETITIONERS' EXHIBITS :

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EXHIBIT P1. COPY OF THE NOTICE ISSUED U/S 13(2) SARFACIE ACT DATED 15.10.2015.

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RESPONDENT(S)' EXHIBITS : NIL

//TRUE COPY//

P.A. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.1016 of 2016

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- - - - Dated this the 12^th day of January 2016

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JUDGMENT

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The petitioner, who had availed a 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 notice issued to the petitioner under Section 13(2) of the SARFAESI Act. It is submitted by the learned standing counsel for the respondent bank that Ext.P1 notice was issued, after the petitioner defaulted in payment of amounts that had been rescheduled at the instance of the respondent bank, pursuant to an earlier default. It is stated that, subsequent to the rescheduling, the petitioner did not effect payment of 31 instalments and it is under those circumstances, that the respondent bank was constrained to issue Ext.P1 notice to recover the balance amounts outstanding from the petitioner. In the writ petition, the petitioner impugns the steps initiated by the respondent bank for recovery of the loan amounts.

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W.P.(c).No.1016 of 2015

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: 2 :

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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 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 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 outstanding amount, in respect of the loan as on today, is stated to be Rs.15,08,735/- together with accrued interest. Accordingly, if the petitioner remits the aforesaid amount of Rs.15,08,735/- together with accrued interest and other charges in twelve equal and successive monthly installments commencing from 05.02.2016, 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

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W.P.(c).No.1016 of 2015

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: 3 :

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from the stage at which they presently stand.

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(iii) The respondent bank shall furnish the petitioner with an up-to-date statement of the dues position, within 10 days from today, so as to enable the petitioner to effect repayment as per the directions in this judgment.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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sm/

Shajahan M S v. State Bank of Travancore

Case brief

What is this about?

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Shajahan M S v. State Bank of Travancore

Case brief

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