Partly allowed

Mohankumar.S v. H.D.F.C. Bank Ltd.

Kerala HC9 Mar 2016WP(C)/4612/2016

Case brief

AI extract

What is this about?

In a writ petition challenging proceedings under the SARFAESI Act regarding vehicle seizure for loan default, the Court granted relief by staying further recovery actions pending repayment of dues. The petitioner was allowed to clear the specific overdue sum in ten monthly installments, with a condition that failure to do so would reinstate the bank's recovery proceedings and forfeiture of possess

What did the court decide?

Stayed further recovery proceedings conditioned upon the petitioner paying Rs.1,73,373+interest in ten monthly installments; directed bank to return vehicle possession upon clearance of dues.

Mohankumar.S Vs H.D.F.C. Bank Ltd. — Banking and Recovery | Kerala HC (2016)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

¶4

WEDNESDAY, THE 9TH DAY OF MARCH 2016/19TH PHALGUNA, 1937

¶5

WP(C).No. 4612 of 2016 (B)

¶6

PETITIONER :

¶7

------------------

¶8

MOHANKUMAR.S., AGED 47 YEARS, ANJILMOOTTIL HOUSE, PONGAMTHANAM P.O., VAKATHANAM, KOTTAYAM.

¶9

BY ADVS.SRI.E.D.GEORGE SRI.P.R.MADHUSUDANAN

¶10

SMT.K.HASEENA

¶11

RESPONDENT :

¶12

--------------------

¶13

H.D.F.C. BANK LTD

¶14

S.L.PLAZA. PALARIVATTOM, KOCHI-682025.

¶15

BY ADV. SRI.T.RAJESH, SC,

¶16

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶17

¶18

WP(C).No. 4612 of 2016 (B)

¶19

APPENDIX

¶20

PETITIONER(S)' EXHIBITS

¶21

EXHIBIT P1: TRUE COPY OF BANK STATEMENT ISSUED BY THE RESPONDENT BANK.

¶22

EXHIBIT P2: TRUE COPY OF THE APPENDIX II (SEE RULE 4(2)) INVENTORY ISSUED BY THE RESPONDENT BANK DATED 18.1.2016. EXHIBIT P3: TRUE COPY OF THE POSSESSION NOTICE DATED 19.1.2016 ISSUED BY THE BANK.

¶23

RESPONDENT(S)' EXHIBITS : NIL.

//TRUE COPY//

P.S. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

¶28

W.P.(C).NO.4612 OF 2016 (B)

¶29

----------------------------------Dated this the 9^th day of March, 2016

¶30

J U D G M E N T

¶31

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.P3 is the possession notice issued to the petitioner by the respondent bank. It is stated that pursuant to Ext.P3 notice, the physical possession of the vehicle was also taken by the respondent bank.

¶32

I have heard the learned counsel appearing for the petitioner as also the learned Standing counsel appearing for the respondent bank.

¶33

On a consideration of the facts and circumstances of the case and the submissions made across the bar and also taking into account

¶34

W.P.(C).No.4612/2016

¶35

¶36

the plea of financial hardship raised by the petitioner, I dispose the writ petition with the following directions:-

¶37

(i) The overdue amount, in respect of the loan availed by the petitioner, is stated to be Rs.1,73,373/- together with accrued interest. Accordingly, if the petitioner pays the said amount of Rs.1,73,373/- together with accrued interest in ten equal and successive monthly installments commencing from 23.03.2016, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against him by the respondent bank shall be kept in abeyance.

¶38

(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.

¶39

(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.

¶40

W.P.(C).No.4612/2016

¶41

¶42

(iv) It is made clear that on the petitioner making the payment of Rs.1,73,373/- together with accrued interest either within the time granted in this judgment or earlier, the respondent bank shall handover physical possession of the vehicle to the petitioner.

¶43

A.K.JAYASANKARAN NAMBIAR JUDGE

¶44

prp/9/3/16

Mohankumar.S v. H.D.F.C. Bank Ltd.

Case brief

What is this about?

What did the court decide?

Mohankumar.S v. H.D.F.C. Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Vincent T.D Vs the Authorised Officer

Sunil Kumar T Vs Authorised Officer

Shaju Vs Kollam District Co-Operative Bank

Jenin Daniel Vs Catholic Syrian Bank

Abdul Gafoor Vs State of Kerala

Thomas Vs the Authorised Officer, Kollam District Co-Op. Bank Ltd.