Partly allowed

A.Q.Muslim v. the Vijaya Bank

Kerala HC17 Mar 2016WP(C)/2222/2016

Case brief

AI extract

What is this about?

The court disposed of a writ petition impugning SARFAESI proceedings initiated by a bank due to loan default. Raising financial hardship, the petitioners sought to repay amounts in installments. The court granted suspension of recovery steps conditional upon payment of the overdue amount within ten months.

What did the court decide?

Grant of stay on recovery proceedings contingent upon payment of Rs.4,22,223 and accrued interest in 10 monthly installments starting from 28.03.2016.

A.Q.Muslim Vs the Vijaya 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.K.JAYASANKARAN NAMBIAR

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THURSDAY, THE 17TH DAY OF MARCH 2016/27TH PHALGUNA, 1937

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WP(C).No. 2222 of 2016 (C)

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PETITIONER(S):

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1. A.Q.MUSLIM, AGED 73 YEARS, S/O.KHAHAR, BARKATH, ARAKURISSI, MANNARKKAD, PALAKKAD DISTRICT.

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2. FATHIMA MUSLIM, AGED 68 YEARS, W/O.A.Q.MUSLIM, BARKATH, ARAKURISSI, MANNARKKAD, PALAKKAD DISTRICT.

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BY ADVS.SRI.K.S.ARUN KUMAR SRI.M.S.DILEEP SMT.RESMI THOMAS

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RESPONDENT(S):

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1. THE VIJAYA BANK, MANNARKKAD BRANCH, PALAKKAD DISTRICT, REPRESENTED BY ITS CHIEF MANAGER-678582.

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2. THE GENERAL MANAGER, VIJAYA BANK, HEAD OFFICE, M.G.ROAD, BANGALORE-560001.

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BY ADV. SMT.LATHA ANAND, SC

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 17-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 2222 of 2016 (C)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXHIBIT P1 COPY OF THE NOTICE ISSUED BY THE RESPONDENTS DATED 6/3/15 UNDER SECTION 13(2) OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002.

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EXHIBIT P2 COPY OF THE NOTICE DATED 18/12/15 ISSUED BY THE NOTICE DATED 18/12/15 ISSUED BY THE ADVOCATE COMMISSIONER TO THE PETITIONERS IN CMP.5143/15 PENDING BEFORE THE CJM COURT, PALAKKADU.

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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.2222 of 2016

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- - - - Dated this the 17^th day of March 2016

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JUDGMENT

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The petitioners, who had availed three loans 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.P2 is the notice issued to the petitioners by the Advocate Commissioner. 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.2222 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 three loans is stated to be Rs.4,22,223/- together with accrued interest. Accordingly, if the petitioners pay the aforesaid amount of Rs.4,22,223/- together with accrued interest, in ten equal and successive monthly installments commencing from 28.03.2016, and continues to keep up the regular installment payments as per the original loan schedule in the three loan accounts, 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/

A.Q.Muslim v. the Vijaya Bank

Case brief

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A.Q.Muslim v. the Vijaya Bank

Case brief

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