Disposed

J.Alexander v. Corporation Bank

Kerala HC31 Aug 2016WP(C)/17291/2016

Case brief

AI extract

What is this about?

The Kerala High Court entertained a writ petition challenging the bank's notice to proceed with the sale of secured assets. The court granted the petitioner an opportunity to repay the outstanding amount in six monthly installments, deferring the confirmation of the sale for six months.

What did the court decide?

Confirmation of sale of secured property deferred for six months; petitioner directed to repay outstanding amount in six equal monthly installments starting 26.09.2016.

J.Alexander Vs Corporation Bank — 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 31ST DAY OF AUGUST 2016/9TH BHADRA, 1938

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WP(C).No. 17291 of 2016 (J)

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PETITIONER(S):

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J.ALEXANDER "THARA",103,THAMPURAN MUKKU, VANCHIYOOR P.O, TRIVANDRUM

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BY ADV. SRI.RAJESH P.NAIR

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RESPONDENT(S):

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CORPORATION BANK REPRESENTED BY ITS AUTHORISED OFFICER, NEW JYOTHI TOWER, T.C25/1506(1) S.S KOVIL ROAD, TRIVANDRUM 695 001

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BY ADV. SRI.S.B.PREMACHANDRA PRABHU

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 31-08-2016,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 17291 of 2016 (J)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1: TRUE COPY OF THE NOTICE DATED 26-08-2015 ISSUED BY THE RESPONDENT P2: TRUE COPY OF THE POSSESSION NOTICE DTD 5/5/16, ISSUED 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. 17291 of 2016

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Dated this the 31^st day of August, 2016

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JUDGMENT

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Petitioner had approached this Court at a stage when the respondent Bank had proceeded to sell the secured assets.

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It is submitted by the learned counsel for the

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petitioner that the petitioner is ready and willing to repay the amount provided sufficient installments are granted. Learned counsel for the petitioner seeks for 20 months' to repay the entire amount.

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Learned counsel for the respondent Bank however objects to the above request of the petitioner and submits that the loan became outstanding on 31.7.2015 and the amount due at the relevant time was about Rs.4.3 Crores and presently, it will come to more than Rs.4.6 Crores. In the meantime, no payment had been effected. Even after issuance of notice under Section 13 (2), no steps had taken to repay any amount and presently, at a stage when the Bank

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W.P.(C) No. 17291 of 2016

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had no other option than to sell the secured assets to recover the huge liability, this writ petition is filed.

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Learned counsel for the petitioner seeks for 20 months' time to pay the amount. I do not think that this Court will be justified in granting such a long time, especially, when secured assets are proclaimed for sale to be held on 30.9.2016.

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Having regard to the aforesaid submission, I am of the view that some time can be granted to the petitioner to redeem the mortgage on the following conditions:

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(i) The Bank shall proceed with the sale of the

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property, but confirmation of sale shall be deferred for a period of six months.

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(ii) Purchaser, if any, shall be informed about the pending proceedings.

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(iii) Petitioner shall remit the entire amount due to the

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Bank in six equal monthly installments starting from 26.09.2016 .

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W.P.(C) No. 17291 of 2016

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-3-

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(iv) If any of the payments are not made as stated

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above, it shall be open for the Bank to proceed further in

accordance with law.

Sd/-

A.M. SHAFFIQUE

JUDGE

Scl/31.08.2016

J.Alexander v. Corporation Bank

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J.Alexander v. Corporation Bank

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