Partly allowed

Santhosh D.Menon v. the Authorized Officer

Kerala HC21 Jan 2016WP(C)/2434/2016

Case brief

AI extract

What is this about?

In a writ petition challenging recovery steps under the SARFAESI Act, the High Court of Kerala, noting petitioners' financial hardship, directed the bankers to keep recovery proceedings in abeyance if the petitioner pays the outstanding amount in 10 equal monthly installments commencing 05.02.2016, with strict consequences for default.

What did the court decide?

Recovery proceedings kept in abeyance if the petitioner pays Rs.20,20,628 plus accrued interest in ten equal monthly instalments commencing 05.02.2016. Default leads to resumption of recovery.

Santhosh D.Menon Vs the Authorized Officer — Contract and Commercial Disputes | Kerala HC (2016)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

¶4

THURSDAY, THE 21ST DAY OF JANUARY 2016/1ST MAGHA, 1937

¶5

WP(C).No. 2434 of 2016 (D)

¶6

PETITIONER(S):

¶7

1. SANTHOSH D.MENON, AGED 42 YEARS, S/O.DAMODHARA MENON, SANTHOSH BHAVAN, MEENKATTU P.O., CHITHIRAPURAM, IDUKKI DISTRICT.

¶8

2. SANTHOSH KUMARI, AGED 38 YEARS, W/O.SANTHOSH D EMNON, SANTHOSH BHAVAN, MEENKATTU P.O. CHITHIRAPURAM, IDUKKI DISTRICT.

¶9

BY ADVS.SRI.GEORGE SEBASTIAN SRI.RAJESH RAJAN

¶10

RESPONDENT(S):

¶11

1. THE AUTHORIZED OFFICER (UNDER SARFAESI ACT), THE IDUKKI DISTRICT CO-OPERATIVE BANK, POST BOX NO.2, IDUKKI COLONY P.O., PIN 685602.

¶12

2. THE IDUKKI DISTRICT CO-OPERATIVE BANK, ADIMALY MAIN BRANCH, REPRESENTED BY ITS MANAGER.

¶13

BY ADV. SRI.P.C.CHACKO, SC

¶14

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶15

¶16

WP(C).No. 2434 of 2016 (D)

¶17

APPENDIX

¶18

PETITIONER(S)' EXHIBITS

¶19

EXHIBIT-P1: A TRUE COPY OF THE NOTICE DATED 27.11.2013 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 13(2) OF THE SARFAESI ACT.

¶20

EXHIBIT-P2: A TRUE COPY OF THE SALE NOTICE DATED 15.1.2016 PUBLISHED IN THE MANGALAM DAILY ON 15.1.2016.

¶21

RESPONDENT(S)' EXHIBITS

NIL.

/ TRUE COPY /

P.S. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

¶27

............................................................. W.P.(C).No.2434 of 2016

¶28

............................................................. Dated this the 21^th day of January, 2016

¶29

J U D G M E N T

¶30

The petitioners who had availed of a business 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 by the 1^st respondent 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.

¶31

I have heard the learned counsel for the petitioners and the learned Standing Counsel appearing on behalf of the respondent bank.

¶32

On a consideration of the facts and circumstances of the

¶33

-2-

¶34

W.P.(C). No. 2434 of 2016

¶35

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 instalments. Taking into account the plea of financial hardship raised by the petitioners, I dispose the writ petition with the following directions:-

¶36

(i) The total amount outstanding from the petitioners to the respondent bank, in respect of the loan, is stated to be Rs.20,20,628/together with accrued interest. Accordingly, if the petitioners pay the aforesaid amount of Rs.20,20,628/- together with accrued interest in 10 equal and successive monthly instalments commencing from 05.02.2016, the recovery steps initiated against the petitioners by the respondent bank shall be kept in abeyance.

¶37

(ii) It is made clear that, if the petitioners commit a default in respect of any of the instalments, 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.

¶38

(iii) The respondent bank shall furnish the

¶39

-3-

¶40

W.P.(C). No. 2434 of 2016

¶41

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.

¶42

A.K.JAYASANKARAN NAMBIAR JUDGE

¶43

mns/21.01.16

Santhosh D.Menon v. the Authorized Officer

Case brief

What is this about?

What did the court decide?

Santhosh D.Menon v. the Authorized Officer

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Prakashini Gangadharan Vs South Indian Bank

M/S. Manuel Sons Hotels (P) Limited Vs the Asssitant Commissioner

Geroge Joseph Vs Kerala State Electricity Board

Unnikrishnan Nair v. Vs Trivandrum Co-Operative Urban Bank Ltd.

M/S. Rainbow Traders Vs the Commercial Tax Officer, Kunnamkulam

Dasan T.D Vs the Authorised Officer