Allowed

Rukiya U.K. v. the State Bank of India

Kerala HC28 Jan 2016WP(C)/1369/2016

Case brief

AI extract

What is this about?

High Court disposed of a writ petition challenging recovery proceedings under the SARFAESI Act. Granting relief for financial hardship, it directed the petitioners to pay overdue amounts via monthly installments to suspend bank action.

What did the court decide?

The writ petition is disposed of with directions keeping bank recovery proceedings in abeyance for eight monthly installments covering the overdue amount.

Rukiya U.K. Vs the State Bank of India — 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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THURSDAY, THE 28TH DAY OF JANUARY 2016/8TH MAGHA, 1937

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WP(C).No. 1369 of 2016 (U)

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PETITIONER(S):

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1. RUKIYA U.K., AGED 59 YEARS, D/O.U.K. ABOOBACKER AND W/O. K.P.ABOOBACKER, R/AT BADRIYA MANZIL, BANGRA MANJESHWAR, BANGRA MANJESHWAR VILLAGE, P.O.MANJESHWAR, MANJESHWAR TALUK, KASARAGOD DISTRICT, PIN -671 323.

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2. MOHAMMED SHAMEER.K., AGED 41 YEARS, S/O.K.P.ABOOBACKER K.P AND RUKIYA U.K., R/AT BADRIYA MANZIL, BANGRA MANJESHWAR, BANGRA MANJESHWAR VILLAGE, P.O.MANJESHWAR, MANJESHWAR TALUK, KASARAGOD DISTRICT, PIN -671 323

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BY ADV. SRI.K.P.HARISH

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RESPONDENT(S):

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1. THE STATE BANK OF INDIA, KASARAGOD BRANCH,

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REPRESENTED BY ITS BRANCH MANAGER, KALLARACKAL'S BUILDING, NEAR PRESS CLUB JUNCTION, M.G.ROAD, KASARAGOD TOWN, KASARAGOD KASBA VILLAGE, KASARAGOD POST, PIN-671 121, KASARAGOD TLAUK AND DISTRICT.

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2. THE AUTHORIZED OFFICER UNDER SARFAESI ACT, (CHIEF MANAGER), STATE BANK OF INDIA, KASARAGOD BRANCH, KALLARACKAL'S BUILDING, NEAR PRESS CLUB JUNCTION, M.G.ROAD, KASARAGOD TOWN, KASARAGOD KASBA VILLAGE, KASARAGOD POST, PIN-671 121, KASARAGOD TLAUK AND DISTRICT.

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BY SRI.R.S.KALKURA, SC, SBI

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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sts

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WP(C).No. 1369 of 2016 (U)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1TRUE OCPY OF THE APPLICATION FILED BEFORE THE CHIEF JUDICIAL MAGISTRATE COURT, KASARAGOD

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P2THE TRUE COPY OF THE ACCOUNT STATEMENT FROM 1.1.2013 TO 31.12.2015

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RESPONDENT(S)' EXHIBITS AND ANNEXURES:

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ANNEX R1(A)- COPY OF THE DEMAND NOTICE, DATED 26/06/2014 ISSUED TO THE PETITIONERS.

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ANNEX R1(B)- COPY OF THE ACKNOWLEDGMENT CARD SIGNED BY THE 1ST PETITIONER.

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ANNEX R1(C)- COPY OF THE ACKNOWLEDGMENT CARD SIGNED BY THE 2ND PETITIONER.

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ANNEX R1(D)- COPY OF THE POSSESSION NOTICE DATED 20/09/2014 ISSUED BY THE RESPONDENT BANK.

/TRUE COPY/

P.A.TO JUDGE

sts

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.1369 of 2016

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- - - - Dated this the 28^th day of January 2016

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JUDGMENT

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The petitioners, 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 application filed by the respondent bank before the Chief Judicial Magistrate. In the writ petition, the petitioners impugn 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 petitioners 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 petitioners is to permit them to remit the balance amounts outstanding to the bank in easy installments. Taking into

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W.P.(c).No.1369 of 2016

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: 2 :

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

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(i) The total overdue amount, in respect of the loan as on 19.01.2016 is stated to be Rs.1,44,200/- together with accrued interest. Accordingly, if the petitioners remit the aforesaid amount of Rs.1,44,200/- together with accrued interest from 19.01.2016 in eight equal and successive monthly installments commencing from 10.02.2016, and continues to keep up the regular installment payments as per the original loan schedule, then the recovery steps initiated against them by the respondent bank shall be kept in abeyance.

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(ii) It is made clear that if the petitioners commit a default in respect of any of the installments, they will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against them from the stage at which they presently stand.

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(iii)The respondent bank shall furnish the petitioners with an up-to-date statement of the dues position, within 10 days from today, so as to enable the petitioners 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/

Rukiya U.K. v. the State Bank of India

Case brief

What is this about?

What did the court decide?

Rukiya U.K. v. the State Bank of India

Case brief

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