Partly allowed

R.S. Sunilkumar v. the Neyyatinkara Co-Operative

Kerala HC16 Feb 2016WP(C)/4279/2016

Case brief

AI extract

What is this about?

The petitioner owed a loan to the respondent bank and non-participated in repayment. Recovery proceedings under the SARFAESI Act were initiated. The High Court, observing the petitioner's financial hardship, allowed remission of the debt in monthly installments and stayed the bank's recovery steps conditioned on timely payment.

What did the court decide?

Recovery steps stayed pending repayment of Rs.2,38,409 plus interest in eight monthly installments commencing 29.02.2016.

R.S. Sunilkumar Vs the Neyyatinkara Co-Operative — Execution and Attachment | 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 16TH DAY OF FEBRUARY 2016/27TH MAGHA, 1937

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WP(C).No. 4279 of 2016 (H)

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PETITIONER:

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R.S. SUNILKUMAR, PUNNAKKATTIL HOUSE, POOKAITHA, RUSSELPURAM P.O., BALARAMAPURAM, THIRUVANANTHAPURAM.

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BY ADVS. SRI.BIJU BALAKRISHNAN

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SMT.V.S.RAAKHEE SMT.PRINCY XAVIER

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RESPONDENTS:

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1. THE NEYYATINKARA CO-OPERATIVE URBAN BANK LTD.NO.931, BALARAMAPURAM (M & E) BRANCH, BALARAMAPURAM P.O., THIRUVANANTHAPURAM , PIN - 695 501, REPRESENTED BY ITS MANAGER.

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2. THE AUTHORIZED OFFICER, THE NEYYATTINKARA CO-OPERATIVE URBAN BANK LTD.NO.931, HEAD OFFICE, NEYYATTINKARA, THIRUVANANTHAPURAM, PIN - 695 121.

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BY ADV. SRI.R.T.PRADEEP, SC.

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 4279 of 2016 (H)

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APPENDIX

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PETITIONER'S EXHIBITS:

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EXHIBIT P1 : TRUE COPY OF THE LETTER DATED 31-08-2015 OF THE 2ND RESPONDENT.

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EXHIBIT P2 : TRUE COPY OF THE ORDER DATED 30-10-2015 IN MC NO.997 OF 2015 OF THE CHIEF JUDICIAL MAGISTGRATE COURT,THIRUVANANTHAPURAM.

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RESPONDENTS' EXHIBITS: NIL

//TRUE COPY//

P. A. TO JUDGE

SKK

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C). No. 4279 of 2016

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===================================================== Dated this the 16^th day of February, 2016

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JUDGMENT

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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 order of the Chief Judicial Magistrate. 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 as also the learned Standing Counsel appearing on behalf of the respondents.

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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 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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-2-

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W.P.(C). No. 4279 of 2016

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(i) The total overdue amount, in respect of the loan, is stated to be Rs.2,38,409/- together with accrued interest. Accordingly, if the petitioner remits the aforesaid amount of Rs.2,38,409/- together with accrued interest in eight equal and successive monthly installments commencing from 29.02.2016, and continues to keep up the regular installments 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, 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 of this judgment.

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Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE

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das /16.02.2016

R.S. Sunilkumar v. the Neyyatinkara Co-Operative

Case brief

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R.S. Sunilkumar v. the Neyyatinkara Co-Operative

Case brief

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