Allowed

Jefrin Cruzo v. Axis Bank Ltd.

Kerala HC20 Jul 2016WP(C)/10629/2016

Case brief

AI extract

What is this about?

This court disposed of a writ petition challenging possession proceedings under Section 14 of the SARFAESI Act. The petitioner, a housing loan defaulting, sought time to regularize payments. The court directed the petitioner to pay overdue dues in installments and remit regular monthly payments. On compliance, possession by the Advocate Commissioner was deferred.

What did the court decide?

Directing the petitioner to pay overdue amount in installments and regular monthly payments; deferring possession if paid.

Jefrin Cruzo Vs Axis Bank Ltd. — 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.M.SHAFFIQUE

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WEDNESDAY, THE 20TH DAY OF JULY 2016/29TH ASHADHA, 1938

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WP(C).No. 10629 of 2016 (C)

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PETITIONER :

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JEFRIN CRUZO S/O.JAMES, CRUZO FAMILY, CHELLOTTE ESTATE, CHUNDALE PO, WAYANAD

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BY ADV. SRI.M.R.SASITH PANICKER

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RESPONDENTS :

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AXIS BANK LTD REPREPSENTED BY ITS AUTHORIZED OFFICER, BRANCH OFFICE, RETAIL ASSETS CENTRE, YMCA CROSS ROAD, KOZHIKODE PIN 673 001.

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AUTHORISED OFFICER AXIS BANK LTD., RETAIL ASSETS CENTRE , YMCA CROSS ROAD, KOZHIKODE - PIN 673 001.

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R1-R2 BY ADV. SMT.SREEKALA KRISHNADAS

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20-07-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 10629 of 2016 (C)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXHIBIT P1 COPY OF THE POSSESSION NOTICE BY THE RESPONDENT

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EXHIBIT P2 COPY OF NOTICE ISSUED BY THE ADVOCATE COMMISSIONER TO THE PETITIONER

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RESPONDENT(S)' EXHIBITS : NIL

/TRUE COPY/

P.A TO JUDGE

A.M.SHAFFIQUE, J.

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W.P.(C).No.10629 of 2016

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-----------------------------------

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Dated this the 20^th day of July, 2016

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J U D G M E N T

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The petitioner has approached this Court being faced with proceedings under the SARFAESI Act by which the respondent Bank had taken steps under Section 14 of the Act and the Advocate Commissioner appointed by the Chief Judicial Magistrate has called upon the petitioner to surrender possession of the premises.

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It is submitted that the petitioner had taken a housing loan for 39,79,511/- on 01.01.2013. The period of loan was 227 months₹ to be paid in monthly instalments of 40,000/-. The petitioner was₹ unable to pay the instalments as agreed, which prompted the respondent Bank to initiate proceedings under the SARFAESI Act. The petitioner seeks for time to regularise the loan account and also to pay the monthly instalments in time.

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The respondent Bank having filed a counter affidavit submits that petitioner himself had sent a letter dated 30.05.2016 intimating the Bank that he is unable to remit the amount and therefore, the Bank may proceed to effect sale of property. Ext.R1 (a) is the said letter.

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Learned counsel for the petitioner would however submit that the letter was issued by the petitioner at the instance of the Bank.

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Be that as it may, when the contract between the parties was to repay the amount in 227 months starting from February

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W.P.(C).No.10629 of 2016

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2013, I am of the view that some indulgence can be shown to the petitioner, if he is in a position to regularise the defaulted payments and pay the regular instalments as per agreed terms, which would save his property. If the payments are made in accordance with the directions issued by this Court, the Advocate Commissioner can be directed to defer taking possession of the premises. In the result, this writ petition is disposed of as under :

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That the petitioner shall pay the overdue amount of ₹8,07,205/- in ten equal monthly instalments starting from 19.08.2016.

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In addition to the payment of aforesaid amount, the petitioner shall also remit the monthly instalments as per the agreed terms.

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If payments are made as stated above, the Advocate Commissioner shall defer taking possession of the premises.

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If any default is committed by the petitioner in repaying the amounts as stated above, it shall be open for the Advocate Commissioner to take possession of the premises without any further notice, in which event, the Bank shall be entitled to take further proceedings in accordance with law.

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Sd/-

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A.M.SHAFFIQUE, JUDGE.

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Jefrin Cruzo v. Axis Bank Ltd.

Case brief

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Jefrin Cruzo v. Axis Bank Ltd.

Case brief

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