Allowed

Sri.Ahamed Faizy v. the Chief Manager

Kerala HC8 Jan 2016WP(C)/177/2016

Case brief

AI extract

What is this about?

The High Court allowed a saint to remit loan dues in ten equal monthly installments to keep recovery proceedings under the SARFAESI Act in abeyance, conditioned on strict adherence to the schedule.

What did the court decide?

Recovery proceedings stayed; petitioners permitted to remit outstanding amount of Rs.7,26,125 plus accrued interest in ten equal monthly installments commencing 25.01.2016.

Sri.Ahamed Faizy Vs the Chief Manager — 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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FRIDAY, THE 8TH DAY OF JANUARY 2016/18TH POUSHA, 1937

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WP(C).No. 177 of 2016 (V)

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PETITIONERS :

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

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1. SRI. AHAMED FAIZY, AGED 50 YEARS, S/O. SAINULBDEEN, THAHALEEL, K P V/14, KOTTOOR P. O., THIRUVANANTHAPURAM PIN 695575

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2. SMT. FASEELA BEEGUM, W/O. AHAMED FAIZY, THAHALEEL, K P V/14, KOTTOOR P. O., THIRUVANANTHAPURAM PIN 695575

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BY ADVS.SRI.T.S.RADHAKRISHNA PILLAI SRI.T.R.RAJEEV SRI.T.P.RAJENDRAN NAIR

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RESPONDENT :

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

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THE CHIEF MANAGER (AUTHORIZED OFFICER)STATE BANK OF TRAVANCORE, POOVACHAL K. P. BRANCH, THIRUVANANTHAPURAM PIN 695575

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BY SRI.SANTHOSH MATHEW BY SRI.SATHISH NINAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 177 of 2016 (V)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1:TRUE COPY OF THE NOTICE DTD 15/3/2014 ISSUED BY THE RESPONDENT TO THE PETITIONERS.

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P2:TRUE COPY OF THE LOAN PASS BOOK. P3:TRUE COPY OF THE CASH RECEIPT DTD 20/3/2014 REMITTED BY THE PETITIONER.

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P4:TRUE COPY OF THE INTIMATION SERVED TO THE PETITIONER BY THE RESPONDENT DTD 22/3/2014.

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P5:TRUE COPY OF THE CASH RECEIPT DTD 27/3/2014 AND 26/3/2015 REMITTED BY THE PETITIONER

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RESPONDENT(S)' EXHIBITS : NIL.

//TRUE COPY//

P.A. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.177 of 2016

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- - - - Dated this the 8^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 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 respondent.

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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.177 of 2016s

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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 outstanding amount, in respect of the loan, is stated to be Rs.7,26,125/- together with accrued interest as on 07.01.2016. Accordingly, if the petitioner remits the aforesaid amount of Rs.7,26,125 together with accrued interest in ten equal and successive monthly installments commencing from 25.01.2016, 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 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/

Sri.Ahamed Faizy v. the Chief Manager

Case brief

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Sri.Ahamed Faizy v. the Chief Manager

Case brief

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