Partly allowed

Unnikrishnan Nair v. Vs Trivandrum Co-Operative Urban Bank Ltd.

Kerala HC21 Jan 2016WP(C)/1598/2016

Case brief

AI extract

What is this about?

Petitioners challenged recovery steps taken by the respondent bank under the SARFAESI Act for a defaulted loan. The Court allowed remission in equal installments within ten days, keeping recovery proceedings in abeyance. Default jeopardizes this relief. The bank must provide an updated account statement.

What did the court decide?

Recovery proceedings kept in abeyance if total outstanding sum with interest is paid in five equal monthly installments starting 10.02.2016. Bank to provide updated account statement within ten days.

Unnikrishnan Nair v. Vs Trivandrum… — Contract and Commercial Disputes | 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 21ST DAY OF JANUARY 2016/1ST MAGHA, 1937

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WP(C).No. 1598 of 2016 (Y)

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PETITIONER(S):

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1. UNNIKRISHNAN NAIR V., CHELAMMA NIVAS, KADAYAKONATH LANE, VATTIYOORKAVU P.O., THIRUVANANTHAPURAM.

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2. THANKAMMA .B, CHELAMMA NIVAS, KADAYAKONATH LANE, VATTIYOORKAVU P.O., THIRUVANANTHAPURAM.

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BY ADV. SRI.JINU JOSEPH

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RESPONDENT(S):

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1. THE TRIVANDRUM CO-OPERATIVE URBAN BANK LTD., POST BOX NO.115, M.G.ROAD, THIRUVANANTHAPURAM 695 001, REPRESENTED BY ITS AUTHORISED OFFICER.

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2. THE TRIVANDRUM CO-OPERATIVE URBAN BANK LTD. NO1959, VATTIYOORKAVU BRANCH, VATTIYOORKAVU-695013, THIRUVANANTHAPURAM REPRESENTED BY ITS BRANCH MANAGER.

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BY SRI.GEORGE POONTHOTTAM,SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 1598 of 2016 (Y)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1: TRUE COPY OF THE NOTICE DATED 14/10/2016 ISSUED BY THE 1ST RESPONDENT

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RESPONDENT(S)' EXHIBITS

NIL.

/ TRUE COPY /

P.S. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C). No. 1598 of 2016

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===================================================== Dated this the 21^st 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 notice issued to the petitioners under Section 13(2) of the SARFAESI Act. 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 him to remit the balance amounts outstanding to the bank in easy installments. Taking into account the plea of financial hardship raised by the petitioners, I dispose the writ petition with the following directions:-

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-2-

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W.P.(C). No. 1598 of 2016

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(i) The total outstanding amount, in respect of the loan, is stated to be Rs.3,10,104/- together with accrued interest. Accordingly, if the petitioners remit the aforesaid amount of Rs.3,10,104/- together with accrued interest in five equal and successive monthly installments commencing from 10.02.2016, 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, within ten days from today, provide the petitioners with an upto-date 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 /21.01.2016

Unnikrishnan Nair v. Vs Trivandrum Co-Operative Urban Bank Ltd.

Case brief

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What did the court decide?

Unnikrishnan Nair v. Vs Trivandrum Co-Operative Urban Bank Ltd.

Case brief

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