Allowed

Mathew Arackal Cleetus v. State Bank of Travancore

Kerala HC28 Mar 2016WP(C)/2551/2016

Case brief

AI extract

What is this about?

In a writ petition challenging bank recovery proceedings under the SARFAESI Act, the Kerala High Court condoned the petitioner's default by directing him to pay the overdue amount and accrued interest in 10 equal monthly installments, keeping further proceedings in abeyance pending compliance.

What did the court decide?

Petitioner directed to pay total overdue amount of Rs185897 with accrued interest in 10 equal monthly installments commencing 04.04.2016 to keep recovery proceedings in abeyance.

Mathew Arackal Cleetus Vs State Bank of Travancore — 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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MONDAY, THE 28TH DAY OF MARCH 2016/8TH CHAITHRA, 1938

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WP(C).No. 2551 of 2016 (T)

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PETITIONER:

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MATHEW ARACKAL CLEETUS, S/O. A.T. CLEETUS, ARACKAL HOUSE, THUMPOLY P.O., ALAPPUZHA DISTRICT, THROUGH HIS FATHER AND POWER OF ATTORNEY HOLDER A.T. CLEETUS.

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BY ADV. SRI.R.MURALIDHARAN (AROOR)

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RESPONDENT(S):

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1. STATE BANK OF TRAVANCORE, DISTRICT COURT ROAD BRANCH, THATHAMPALLY P.O., ALAPPUZHA - 688 013, REPRESENTED BY ITS BRANCH MANAGER.

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2. CHIEF MANAGER AND AUTHORISED OFFICER, STATE BANK OF TRAVANCORE, REG.III (KLM), REGIONAL OFFICE, KALARCODE, ALAPPUZHA, PIN - 688 003.

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BY ADV. SRI.R.S.KALKURA, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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mbr/

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WP(C).No. 2551 of 2016 (T)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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P1TRUE COPY OF THE POWER OF ATTORNEY EXECUTED BY THE PETITIONER IN FAVOUR OF HIS FATHER DATED 27/01/2009.

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P2TRUE COPY OF THE APPLICATION FILED BY THE PETITIONER TO THE IST RESPONDENT TO ISSUE A CERTIFIED TRUE COPY OF THE POWER OF ATTORNEY, DATED 08/01/2016

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P3TRUE COPY OF THE STATEMENT OF ACCOUNTS ISSUED BY THE IST RESPONDENT DATED 04/01/206

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P4TRUE COPY OF THE NOTICE ISSUED UNDER S. 13(2) BY THE 2ND RESPONDENT DATED 18/11/2015.

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P5TRUE COPY OF THE OBJECTION FILED BY THE PETITIONER TO EXHIBIT-P4 NOTICE, TO THE 2ND RESPONDENT, DATEC 15/01/2016.

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RESPONDENT(S)' EXHIBITS:

NIL

//TRUE COPY//

P.S. TO JUDGE

mbr/

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.2551 of 2016

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............................................................. Dated this the 28^th day of March, 2016

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J U D G M E N T

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The petitioner, 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.P4 is the notice issued under Section 13 (2) of the SARFAESI 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 for the petitioner 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.2551 of 2016

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-2-

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prayer of the petitioner is to permit him to remit the balance amounts outstanding to the respondent 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 overdue amount, in respect of the loan availed by the petitioner as on today is stated to be Rs.1,85,897/-. Accordingly, if the petitioner pays the said amount of Rs.1,85,897/- together with accrued interest in 10 equal and successive monthly installments commencing from 04.04.2016, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against him by the respondent bank shall be kept in abeyance.

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(ii) It is further 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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-3-

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W.P.(C). No.2551 of 2016

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(iii) The respondent bank shall, within ten days from today, provide the petitioner with an upto-date statement of accounts so as to enable the petitioner to discharge the liability in accordance with the directions in this judgment.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/28.3.16

Mathew Arackal Cleetus v. State Bank of Travancore

Case brief

What is this about?

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Mathew Arackal Cleetus v. State Bank of Travancore

Case brief

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