Allowed

Kamalasanan Pillai v. the Authorized Officer

Kerala HC22 Feb 2016WP(C)/3128/2016

Case brief

AI extract

What is this about?

Petitioner sought writ relief against recovery proceedings under SARFAESI Act and RR Act initiated by Respondent Bank due to loan default. Court allowed petitioner to pay outstanding dues in ten monthly installments starting 3.3.2016. If full payment is made, bank must keep recovery proceedings in abeyance. Default restores bank's right to proceed.

What did the court decide?

Petitioner allowed to pay outstanding dues of Rs.7,49,105 plus interest in ten monthly installments starting 3.3.2016; if paid, bank to keep recovery proceedings in abeyance.

Kamalasanan Pillai Vs the Authorized Officer — 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 22ND DAY OF FEBRUARY 2016/3RD PHALGUNA, 1937

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WP(C).No. 3128 of 2016 (M)

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PETITIONER(S):

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KAMALASANAN PILLAI, SON OF PARAMESWARA KURUP, 223 (18/81), KRISHNA MANDIRAM, 5, KALLUVATHUKKAL PANCHAYAT, KOLLAM -691 578.

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BY ADVS.SRI.JOHNSON GOMEZ, SRI.S.BIJU (KIZHAKKANELA).

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RESPONDENT(S):

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1. THE AUTHORIZED OFFICER, HDFC BANK LTD, REMEDIAL (RETAIL AGRI), FIRST FLOOR CHOICE TOWERS, MANORAMA JUNCTION, ERNAKULAM-682 016.

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2. THE MANAGER, HDFC BANK LTD, REMEDIAL (RETAIL AGRI), FIRST FLOOR, CHOICE TOWERS, MANORAMA JUNCTION, ERNAKULAM=682 016.

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3. THE DEPUTY TAHSILDAR, (REVENUE RECOVERY), KOLLAM-691 001.

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R1 & R2 BY ADV. SRI.T.RAJESH, SC. R3 BY GOVT. PLEADER SMT.LILLY K.T.

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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rs.

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WP(C).No. 3128 of 2016 (M)

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APPENDIX

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PETITIONER'S EXHIBITS:-

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EXT.P1: TRUE COPY OF THE MERITORIOUS INVENTION AWARD ISSUED BY THE NATIONAL RESEARCH DEVELOPMENT CORPORATION ISSUED TO THE PETITIONER.

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EXT.P2: TRUE COPY OF THE DEMAND NOTICE NO. HDFC/20150108 DT. 08/01/2015 ISSUED BY THE 1ST RESPONDENT.

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EXT.P3: TRUE COPY OF THE REPLY DT. 26/02/2015 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT.

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EXT.P4: TRUE COPY OF THE OBJECTION DT. 30/05/2015 IN CMP NO. 2743/15 BEFORE THE CHIEF JUDICIAL MAGISTRATE COURT, KOLLAM.

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EXT.P5: TRUE COPY OF THE NOTICE DT. 11/01/2016 ISSUED BY THE ADVOCATE COMMISSIONER TO THE PETITIONER.

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EXT.P6: TRUE COPY OF THE DEMAND NOTICE NO. DT. 01/09/2015 ISSUED BY THE 3RD RESPONDENT.

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EXT.P7: TRUE COPY OF THE OBJECTION DT. 10/12/2015 SUBMITTED BY 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.3128 OF 2016 (M)

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Dated this the 22^nd day of February, 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', as well as the Kerala Revenue Recovery Act, hereinafter referred to as the 'RR Act', to recover the loan amounts. Ext.P5 is the notice issued 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 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 and also taking into account the plea of financial hardship raised by the petitioner, I dispose the

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W.P.(C).No.3128/2016

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writ petition with the following directions:-

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(i) The total amount outstanding from the petitioner to the respondent bank, as on 9.2.2016, is stated to be Rs.7,49,105/- together with accrued interest. Accordingly, if the petitioner pays the said amount of Rs.7,49,105/- together with accrued interest from 9.2.2016 in ten equal and successive monthly installments commencing from 3.3.2016, then the further proceedings initiated against him by the respondent bank under the SARFAESI Act as also the RR Act 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 petitioner with an up-to-date statement of the dues position together with interest within ten days from today so as to enable the petitioner to discharge his liability in accordance with the directions in this judgment.

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A.K.JAYASANKARAN NAMBIAR JUDGE

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prp/22/2/16

Kamalasanan Pillai v. the Authorized Officer

Case brief

What is this about?

What did the court decide?

Kamalasanan Pillai v. the Authorized Officer

Case brief

What is this about?

What did the court decide?

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