Partly allowed

Sudheesh Kumar M.L v. Chief Manager/Authorised Officer

Kerala HC1 Mar 2016WP(C)/2967/2016

Case brief

AI extract

What is this about?

Petitioner challenging SARFAESI Act recovery steps for defaulted housing loan. Court allowed staying recovery proceedings upon full payment of overdue amount via six monthly installments. Bank directed to provide updated dues statement.

What did the court decide?

Stay of recovery proceedings if petitioner remits Rs.1,20,000+ interest in 6 monthly installments starting 15.03.2016. Bank to furnish updated dues statement within 10 days.

Sudheesh Kumar M.L Vs Chief… — 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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TUESDAY, THE 1ST DAY OF MARCH 2016/11TH PHALGUNA, 1937

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WP(C).No. 2967 of 2016 (U)

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PETITIONER :

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SUDHEESH KUMAR M.L., AGED 36 YEARS, S/O.MADHAVAN PILLAI, RESIDING AT LEELA BHAVAN, PARUTHIPPALLY (P.O), VIA - KUTTICHAL, THIRUVANANTHAPURAM DISTRICT, PIN - 695 574.

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BY ADVS.SRI.GOPAKUMAR R.THALIYAL SRI.R.B.RAJESH

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RESPONDENT :

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THE CHIEF MANAGER/AUTHORISED OFFICER, ANDHRA BANK, THIRUVANANTHAPURAM BRANCH, P.B.NO.3, PAN AFRICAN PLAZA, M.G.ROAD, THIRUVANANTHAPURAM, PIN - 695 001.

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BY ADV. SRI.ABRAHAM MATHEW (VETTOOR)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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sts

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WP(C).No. 2967 of 2016 (U)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXT.P1: TRUE COPY OF THE NOTICE ISSUED BY THE RESPONDENT DATED 1.8.2015

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EXT.P2: TRUE COPY OF THE POSSESSION NOTICE ISSUED BY THE RESPONDENT DATED 8.10.2015

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EXT.P3, P3(A) & P3(B): TRUE COPIES OF THE RECEIPTS ISSUED TO THE PETITIONER DATED 10.12.2015, 19.12.2015 & 28.12.2015

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EXT.P4: TRUE COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DATED 7.1.2016

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RESPONDENT(S)' EXHIBITS:

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EXT.R1(A): COPY OF THE JUDGMENT IN WPC.NO.21307/2015 DATED 15/07/2015.

/TRUE COPY/

P.A.TO JUDGE

sts

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.2967 of 2016

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- - - - Dated this the 1^st day of March 2016

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JUDGMENT

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The petitioner, who had availed a housing 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 and Ext.P4 is the notice issued to the petitioner by the Advocate Commissioner. 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 and the learned Standing Counsel appearing on behalf of the respondent.

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It is vehemently opposed by the learned Standing Counsel for the respondents, who would point out that, the petitioner's firm is a defaulter in another loan, availed from the

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W.P.(c).No.2967 of 2016

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: 2 :

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respondent bank and the said loan account has not been regularised. 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 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 overdue amount, in respect of the loan, is stated to be Rs.1,20,000/- together with accrued interest. Accordingly, if the petitioner remits the aforesaid amount of Rs.1,20,000/- together with accrued interest in six equal and successive monthly installments commencing from 15.03.2016, and continues to keep up the regular installment payments as per the original loan schedule, 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,

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W.P.(c).No.2967 of 2016

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: 3 :

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within 10 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/