Disposed

Ramnath S. v. the Manager, Corporation Bank

Kerala HC4 Mar 2016WP(C)/2277/2016

Case brief

AI extract

What is this about?

Petitioners aggrieved by recovery proceedings under the SARFAESI Act sought relief based on financial hardship. The single judge, instead of quashing the proceedings or declaring them illegal, permitted the petitioners to remit the overdue amount and accrued interest in six equal monthly installments. If payments continue regularly, further proceedings are stayed; default restores bank's recovery

What did the court decide?

Petitioners directed to pay total overdue loan and accrued interest in six equal monthly installments to stay bank recovery proceedings; further proceedings kept in abeyance.

Ramnath S. Vs the Manager, Corporation Bank — 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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FRIDAY, THE 4TH DAY OF MARCH 2016/14TH PHALGUNA, 1937

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WP(C).No. 2277 of 2016 (H)

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PETITIONER(S):

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1. RAMNATH S., AGED 40 YEARS, S/O.LATE SIVAN PILLAI, RESIDING AT ANNAVI HOUSE, CHANDANAKAVU, PAZHAVEEDU P.O., ALAPPUZHA-9.

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2. ARCHANA RENGANATH, AGED 33 YEARS, W/O.RENGANATH. S, RESIDING AT ANNAVI HOUSE, CHANDANAKAVU, PAZHAVEEDU P.O., ALAPPUZHA-9.

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BY ADV. SMT.S.SUJINI.

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RESPONDENT(S):

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1. THE MANAGER, CORPORATION BANK, 1ST FLOOR, A.A.T.T.D BUILDING, OPP. GENERAL HOSPITAL, ALAPPUZHA-688 011.

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2. THE AUTHORISED OFFICER, CORPORATION BANK, 1ST FLOOR, A.A.T.T.D. BUILDING, OPP. GENERAL HOSPITAL, ALAPPUZHA-688 011.

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BY ADV. SRI.S.B.PREMACHANDRA PRABHU

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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rs.

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WP(C).No. 2277 of 2016 (H)

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APPENDIX

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PETITIONER'S EXHIBITS:-

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EXHIBIT-P1: TRUE COPY OF THE LETTER DATED 03.07.2015 ISSUED BY THE RESPONDENT BANK.

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EXHIBIT-P2: TRUE COPY OF THE REQUEST LETTER BY THE 1ST PETITIONER HEREIN DATED 03.12.2015.

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EXHIBIT-P3: TRUE COPY OF THE POSSESSION NOTICE ISSUED BY THE RESPONDENT BANK DATED 12/01/2016.

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RESPONDENT'S EXHIBITS:- NIL.

//TRUE COPY//

P.S. TO JUDGE

rs.

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.2277 of 2016

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............................................................. Dated this the 4^th day of March, 2016

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J U D G M E N T

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The petitioners, who had availed of 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.P3 is the possession notice. 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 for the petitioners as also the learned Standing counsel appearing for the respondent bank.

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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

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W.P.(C). No.2277 of 2016

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prayer of the petitioners is to permit them to remit the balance amounts outstanding to the respondent 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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(i) The total overdue amount, in respect of the loan availed by the petitioners as on today is stated to be Rs.1,46,000/-. Accordingly, if the petitioners pay the said amount of Rs.1,46,000/- together with accrued interest in six equal and successive monthly installments commencing from 21.03.2016, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against them by the respondent bank shall be kept in abeyance.

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(ii) It is further 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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-3-

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W.P.(C). No.2277 of 2016

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(iii) The respondent bank shall furnish the petitioners with an up-to-date statement of dues within ten days from today, so as to enable the petitioners to comply with the directions in this judgment.

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/4.3.16

Ramnath S. v. the Manager, Corporation Bank

Case brief

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Ramnath S. v. the Manager, Corporation Bank

Case brief

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