Allowed

Abu P.A v. the Authorized Officer

Kerala HC8 Feb 2016WP(C)/3321/2016

Case brief

AI extract

What is this about?

In this writ petition against bank recovery steps under the SARFAESI Act, the petitioner sought installment payment relief for outstanding dues to regularize his loan. The court allowed installment payment subject to ten instalments and warned that future default would lead to resumption of recovery.

What did the court decide?

Payment of total outstanding amount of Rs. 12,56,138/- plus accrued interest in 10 equal monthly instalments commencing from 20.02.2016.

Abu P.A Vs the Authorized Officer — 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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MONDAY, THE 8TH DAY OF FEBRUARY 2016/19TH MAGHA, 1937

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WP(C).No. 3321 of 2016 (M)

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PETITIONER:

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ABU P.A., S/O.ABDULKHADAR, AGED 48 YEARS, PALLATHUKUDY HOUSE, OKKAL P.O., CHELAMATTOM VILLAGE, KUNNATHUNADU TALUK, ERNAKULAM DISTRICT - 683 550.

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BY ADVS.SRIP.S.SUJETH SMT.M.R.REENA

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RESPONDENT(S):

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1. THE AUTHORIZED OFFICER/EXECUTIVE OFFICER, THE ERNAKULAM DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, P.B.NO.4, KAKKANAD P.O., ERNAKULAM DISTRICT, KOCHI - 682 030.

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2. THE BRANCH MANAGER, ERNAKULAM DISTRICT CO-OPERATIVE BANK LTD., PERUMBAVOOR EVENING BRANCH, PERUMBAVOOR P.O., ERNAKULAM DISTRICT, PIN - 683 542.

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BY SMT.I.SHEELA DEVI, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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mbr/

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WP(C).No. 3321 of 2016 (M)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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EXHIBIT P1. THE TRUE COPY OF THE DEMAND NOTICE ISSUED TO THE PETITIONER U/S 13(2) DATED 27.10.2015.

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EXHIBIT P2. TRUE COPY OF THE REPRESENTATION GIVEN TO THE BRANCH MANAGER, DATED 05.11.2015.

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RESPONDENT(S)' EXHIBITS: NIL

//TRUE COPY//

P.S. TO JUDGE

mbr/

A.K.JAYASANKARAN NAMBIAR, J. ............................................................. W.P.(C).No.3321 Of 2016

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............................................................. Dated this the 8^th 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', to recover the loan amounts. Ext.P1 is the notice issued under Section 13(2) of the SARFAESI Act. It is pointed out by learned Standing counsel for the respondent bank that the loan account cannot be regularised since the petitioner was given various opportunities in the past to regularise the loan account, and the petitioner did not avail of the same or comply with the directions with regard to payment of amount in instalments. 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 for the petitioner and the

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W.P.(C). No. 3321 of 2016

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-2-

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learned Standing Counsel appearing on behalf of 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 amounts outstanding to the bank in easy instalments. 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 amount outstanding from the petitioner to the respondent bank, in respect of the loan, is stated to be Rs.12,56,138/- together with accrued interest from 27.10.2015. Accordingly, if the petitioner pays the aforesaid amount of Rs.12,56,138/- together with accrued interest in 10 equal and successive monthly instalments commencing from 20.02.2016, the recovery steps initiated against the petitioner 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

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-3-

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W.P.(C). No. 3321 of 2016

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instalments, 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, 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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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/8.02.16

Abu P.A v. the Authorized Officer

Case brief

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What did the court decide?

Abu P.A v. the Authorized Officer

Case brief

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