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Saji.D v. Alappuzha District Co-Operative Bank Limited

Kerala HC13 Jan 2016WP(C)/261/2016

Case brief

AI extract

What is this about?

A loan defaulting petitioner approached the High Court of Kerala seeking to remit outstanding dues in installments due to financial hardship. The Court granted relief, staying bank proceedings contingent on payment of the overdue amount in eight monthly installments and regular adherence to the original loan schedule.

What did the court decide?

Recovery proceedings stayed if petitioner pays Rs. 1,23,000 + interest in 8 monthly installments starting 05.01.2016 and maintains regular payments per original schedule; bank to furnish updated dues

Saji.D Vs Alappuzha District Co-Operative Bank Limited — 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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WEDNESDAY, THE 13TH DAY OF JANUARY 2016/23RD POUSHA, 1937

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WP(C).No. 261 of 2016 (G)

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PETITIONER(S):

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----------------------

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SAJI D., AGED 42 YEARS, S/O. DAMODARAN, THUNDIL VEEDU, CHIRAKKADAVOM, KAYAMKULAM P.O.

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BY ADVS.SRI.B.RENJITHKUMAR SRI.D.THILAKAN

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RESPONDENT(S):

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-------------------------

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1. THE ALAPPUZHA DISTRICT CO-OPERATIVE BANK LIMITED, REPRESENTED BY ITS CHIEF EXECUTIVE, ALAPPUZHA, PIN 682 511.

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2. THE BRANCH MANAGER, ALAPPUZHA DISTRICT CO-OPERATIVE BANK, KAYAMKULAM, PIN - 690 502.

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3. THE AUTHORISED OFFICER, THE ALAPPUZHA DISTRICT CO-OPERATIVE BANK, ALAPPUZHA, PIN - 682 511.

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BY ADV. SMT.K.N.RAJANI, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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msv/

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WP(C).No. 261 of 2016 (G)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGE OF THE PASS BOOK. EXHIBIT P2 TRUE COPY OF THE POSSESSION NOTICE DATED 21/12/15

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RESPONDENT(S)' EXHIBITS: -----------------------------------------

NIL

//TRUE COPY//

P.S.TO JUDGE

Ms v/

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.261 of 2016

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............................................................. Dated this the 13^th day of January, 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.P2 is the possession notice. 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 prayer of the petitioner is to permit him to remit the balance

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-2-

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W.P.(C). No.261 of 2016

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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.1,23,000/- together with accrued interest. Accordingly, if the petitioner pays the said amount of Rs.1,23,000/-, together with accrued interest, in eight equal and successive monthly installments commencing from 05.01.2016, 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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(iii) The respondent bank shall furnish the

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-3-

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W.P.(C). No.261 of 2016

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petitioner with an up-to-date statement of dues within ten days from today, so as to enable the petitioner to comply with the directions in this judgment.

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/13.01.16

Saji.D v. Alappuzha District Co-Operative Bank Limited

Case brief

What is this about?

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Saji.D v. Alappuzha District Co-Operative Bank Limited

Case brief

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