Allowed

V.D.Joseph v. the Kerala State Co-Operative Bank Ltd.

Kerala HC1 Apr 2016WP(C)/4087/2016

Case brief

AI extract

What is this about?

The court disposed of a writ petition where the petitioner impugned bank recovery steps. Acknowledging financial hardship, the court allowed remission of the balance loan amount in monthly instalments, staying recovery steps pending payment.

What did the court decide?

Permission to remit outstanding balance of Rs.6,29,300/- plus interest in 10 equal monthly instalments from 20.04.2016, subject to which recovery steps are stayed.

V.D.Joseph Vs the Kerala State Co-Operative Bank Ltd. — 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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FRIDAY, THE 1ST DAY OF APRIL 2016/12TH CHAITHRA, 1938

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WP(C).No. 4087 of 2016 (I)

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PETITIONER(S):

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V.D. JOSEPH, AGED 58 YEARS, S/O. DEVASSIA, VALLANATTU HOUSE, KALKKANDY P.O., ATTAPPADY, PALAKKAD.

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BY ADVS. SRI.K.T.SHYAMKUMAR, SRI.HARISH R. MENON.

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RESPONDENT(S):

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THE KERALA STATE CO-OPERATIVE BANK LTD., REPRESENTED BY ITS AUTHORISED OFFICER, PALAKKAD BRANCH, NURANI JUNCTION, PALAKKAD -4.

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BY ADV. SRI.GEORGE POONTHOTTAM, SC.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01-04-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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rs.

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WP(C).No. 4087 of 2016 (I)

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APPENDIX

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PETITIONER'S EXHIBITS:-

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P1: TRUE COPY OF THE SALE NOTICE DATED 04/12/2014 ISSUED BY THE RESPONDENT.

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P2: TRUE COPY OF THE INTERIM ORDER DATED 15/01/2015 IN SA NO.27/2015 OF THE DRT, ERNAKULAM.

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P3: TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT OF RS.1,00,000/-.

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P4: TRUE COPY OF THE NOTICE DATED 07/01/2016 ISSUED BY THE BRANCH MANAGER OF THE RESPONDENT BANK.

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P5: TRUE COPY OF THE NOTICES DATED 16/01/2016 ISSUED BY THE RESPONDENT.

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P6: TRUE COPY OF THE SALE NOTICE PUBLISHED IN NEWSPAPER.

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RESPONDENT'S EXHIBITS:- NIL.

//TRUE COPY//

P.S. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.4087 of 2016

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............................................................. Dated this the 1^st day of April, 2016

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J U D G M E N T

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The petitioner who, along with his wife, had availed of two loans 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. 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 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

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W.P.(C). No. 4087 of 2016

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-2-

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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) During the pendency of the writ petition, the petitioner had approached the respondent bank and settled the loan liability of the wife, covered by Ext.P4 notice in the writ petition, by paying an amount of Rs.9,06,000/in full and final settlement of the said liability. The remaining amount outstanding from the petitioner to the respondent bank, pursuant to Ext.P5 notice, is Rs.6,29,300/-. Accordingly, if the petitioner pays the aforesaid amount of Rs.6,29,300/- together with accrued interest in 10 equal and successive monthly instalments commencing from 20.04.2016, 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 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

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-3-

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W.P.(C). No. 4087 of 2016

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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/1.4.16

V.D.Joseph v. the Kerala State Co-Operative Bank Ltd.

Case brief

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V.D.Joseph v. the Kerala State Co-Operative Bank Ltd.

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