Partly allowed

Mohanan.T v. the District Collector, Pathanamthitta

Kerala HC12 Feb 2016WP(C)/2335/2016

Case brief

AI extract

What is this about?

This judgment grants a stay on recovery proceedings against a petitioner who defaulted on bank loans. The High Court directed the bank to allow the petitioner to remit the outstanding balance of Rs.19,34,561/- in twelve monthly installments. Recovery actions remain suspended only if the petitioner strictly adheres to this repayment schedule and maintains default-free payments in other loan account

What did the court decide?

Stay on recovery proceedings granted conditioned upon the petitioner remitting Rs.19,34,561/- in 12 monthly installments.

Mohanan.T Vs the District Collector… — 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 12TH DAY OF FEBRUARY 2016/23RD MAGHA, 1937

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WP(C).No. 2335 of 2016 (N)

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PETITIONER(S):

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MOHANAN. T., AGED 44 YEARS, S/O LATE THANKAPPAN, ERAPPANPARA HOUSE, ERUMAKKADU POST, VALLANA MURI, KIDAGANOOR VILLAGE, KOZHENCHERRY TALUK, PATHANAMTHITTA DISTRICT.

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BY ADV. SRI.AJITH MURALI.

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RESPONDENT(S):

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1. THE DISTRICT COLLECTOR, PATHANAMTHITTA, PATHANAMTHITTA DISTRICT-689 645.

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2. THE DEPUTY TAHSILDAR (REVENUE RECOVERY), KOZHENCHERRY TALUK, PATHANAMTHITTA DISTRICT-689 645.

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3. THE VILLAGE OFFICER, KIDAGANOOR VILLAGE, KOZHENCHERRY TALUK, PATHANAMTHITTA DISTRICT-689 641.

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4. THE AUTHORISED OFFICER, INDIAN OVERSEAS BANK, EDAYARANMULA BRANCH, KOLLAMPADICAL, COMMERCIAL CENTRE, EDAYARANMULA, PATHANAMTHITTA, PIN:689 532.

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5. BRANCH MANAGER, INDIAN OVERSEAS BANK, EDAYARANMULA BRANCH, KOLLAMPADICAL, COMMERCIAL CENTRE, EDAYARANMULA, PATHANAMTHITTA, PIN:689 532.

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R1 TO R3 BY GOVT. PLEADER SMT.LILLY K.T. R4 & R5 BY ADVS. SRI.SUNIL SHANKER, SC, SMT.ARCHANA S. KUMAR.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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rs.

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WP(C).No. 2335 of 2016 (N)

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APPENDIX

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PETITIONER'S EXHIBITS:-

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EXHIBIT P1: A TRUE COPY OF THE NOTICE ISSUED BY THE 4TH RESPONDENT DATED 08.10.2015 TO THE PETITIONER.

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EXHIBIT P2: THE TRUE COPY OF THE STATEMENT OF THE LOAN TRANSACTION WITH THE PETITIONER AND 5TH RESPONDENT BANK.

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EXHIBIT P3: TRUE COPY OF THE NOTICE DATED 18.11.2015 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

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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.2335 of 2016

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- - - - Dated this the 12^th day of February 2016

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JUDGMENT

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The petitioner, who had availed four 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.P1 is the notice issued to the petitioner under Section 13(2) of the SARFAESI Act. Ext.P3 is the notice issued under the Revenue Recovery Act. In the writ petition, the petitioner impugns 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 petitioner 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 petitioner is to permit him to remit the balance

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W.P.(c).No.2335 of 2016

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: 2 :

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amounts outstanding to the bank in easy installments. Taking into account the plea of financial hardship raised by the petitioner, I dispose the writ petition with the following directions:-

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(i) The total outstanding amount from the petitioner, as on 22.01.2016, under the term loan and cash credit facility are stated to be Rs.5,79,711/- and Rs.5,03,262/respectively. Similarly the total overdue amount in the vehicle loan account and the housing loan Account are stated to be Rs.6,37,677/- and Rs.2,13,911/- respectively. Accordingly, if the petitioner remits the total amount of Rs.19,34,561/- together with accrued interest and other charges, in twelve equal and successive monthly installments commencing from 24.02.2016, and continues to keep up the regular installment payments as per the original loan schedule in the vehicle loan account and housing loan account, then the recovery steps initiated against him by the respondent bank shall be kept in abeyance.

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(ii) It is made clear that if the petitioner commits a default in respect of any of the installments, he will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against him from the stage at which they presently stand.

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(iii)The respondent bank shall furnish the petitioner with an up-to-date statement of the dues position, within 10

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W.P.(c).No.2335 of 2016

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: 3 :

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days from today, so as to enable the petitioner to effect repayment as per the directions in this judgment.

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Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE

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sm/

Mohanan.T v. the District Collector, Pathanamthitta

Case brief

What is this about?

What did the court decide?

Mohanan.T v. the District Collector, Pathanamthitta

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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