The court allowed the writ petition by allowing the petitioner to remit the loan amount in ten equal monthly installments subject to no further default, pending which recovery proceedings are stayed.
Stay on recovery proceedings if petitioner pays the outstanding amount of Rs.2,77,000 plus interest in ten equal monthly installments commencing 20.2.2016.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR
MONDAY, THE 8TH DAY OF FEBRUARY 2016/19TH MAGHA, 1937
WP(C).No. 1172 of 2016 (V)
PETITIONER(S):
ANIL KUMAR, MELOOTTU PUTHEN VEEDU, PADINJATTINKARA, KOTTARAKKARA, KOLLAM DISTRICT.
BY ADV. SRI.SYAM J SAM
RESPONDENT(S):
AUTHORISED OFFICER, DEPUTY GENERAL MANAGER, KOLLAM DISTRICT CO-OPERATIVE BANK, KOLLAM. PIN - 691 502.
BY SRI.T.R.HARIKUMAR, SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
PJ
WP(C).No. 1172 of 2016 (V)
APPENDIX
PETITIONER(S)' EXHIBITS
EXT.P-1: THE TRUE COPY OF THE POSSESSION CERTIFICATE ISSUED BY THE RESPONDENT
RESPONDENT(S)' EXHIBITS --------------------------------------NIL. / TRUE COPY /
P.S. TO JUDGE
PJ
A.K.JAYASANKARAN NAMBIAR, J.
W.P.(C).NO.1172 OF 2016 (V) ----------------------------------Dated this the 8th day of February, 2016
J U D G M E N T
The petitioner, who had availed of 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 possession 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.
On a consideration of the facts and circumstances of the case and the submissions made across the bar, I note that the sole prayer
W.P.(C).No.1172/2016
2
of the petitioner is to permit him to remit the balance amounts outstanding to the respondent 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:-
(i) The overdue amount, in respect of the loan availed by the petitioner, is stated to be Rs.2,77,000/- together with accrued interest. Accordingly, if the petitioner pays the said amount of Rs.2,77,000/- together with accrued interest in ten equal and successive monthly installments commencing from 20.2.2016, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against him by the respondent bank shall be kept in abeyance.
(ii) It is further 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.
(iii) The respondent bank shall furnish the petitioner with an up-to-date statement of the dues position together with interest within ten days from
W.P.(C).No.1172/2016
3
today so as to enable the petitioner to discharge his liability in accordance with the directions in this judgment.
A.K.JAYASANKARAN NAMBIAR JUDGE
prp/8/2/16
2 issues framed by the court
Whether a defaulting borrower can be allowed to remit loan dues in installment payments by way of a stay on recovery proceedings.
Whether the court can impose conditions precedent for granting a stay on actions initiated under the SARFAESI Act.
1 provisions across 1 enactments
Anil Kumar
Authorised Officer, Deputy General Manager, Kollam District Co-operative Bank
A.K.Jayasankaran Nambiar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
