Disposed

Rajeev Babu C v. Federal Bank

Kerala HC5 Apr 2016WP(C)/4647/2016

Case brief

AI extract

What is this about?

High Court allowed a writ petition filed by a loan defaulting petitioner seeking relief from recovery proceedings under SARFAESI Act. Court directed the bank to stay recovery steps if petitioner pays overdue amounts in installments and reiterated consequences of future default.

What did the court decide?

Stay of recovery proceedings upon payment of total overdue amount in eleven equal monthly installments commencing from 20.04.2016, along with accrued interest.

Rajeev Babu C Vs Federal Bank — 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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TUESDAY, THE 5TH DAY OF APRIL 2016/16TH CHAITHRA, 1938

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WP(C).No. 4647 of 2016 (E)

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PETITIONER:

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RAJEEV BABU C, S/O NARAYANAN,VRINDAVAN FARM, PANAYUR P.O., POLPULLY, PALAKKAD-678522.

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BY ADV. SRI.A.R.GANGADAS

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RESPONDENT(S):

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1. FEDERAL BANK, CHITTUR BRANCH, REPRESENTED BY MANAGER, GOVT.HOSPITAL JUNCTION, COURT ROAD, CHITTUR, PALAKKAD DISTRICT-678101.

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2. THE REGIONAL HEAD, FEDERAL BANK, OFFICE OF THE REGIONAL HEAD, SAI KRISHNA RESDENCY COIMBATORE ROAD, PALAKKAD DISTRICT, 678013.

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3. THE CHIEF MANAGER, FEDERAL BANK ASSET RECOVERY BRNACH, 4TH FLOOR, M SON'S ARCADE, CHEROOTY ROAD, KOZHIKKODE-673001.

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BY ADV. SRI.K.MADHUSOODANAN, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05-04-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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p.t.o

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WP(C).No. 4647 of 2016 (E)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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EXHIBIT P1: TRUE COPY OF THE NEWS REPORT IN MATHRUBHUMI DAILY DATED 17.8.2013.

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EXHIBIT P2: TRUE COPY OF THE NOTICE ISSUED BY THE THIRD RESPONDENT TO THE PETITIONER AND HIS WIFE DATED 05.10.2015.

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EXHIBIT P3: TRUE COPY OF THE NOTICE ISSUED BY THE THIRD RESPONDENT TO THE PETITIONER AND OTHERS DATED 5.10.2015.

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EXHIBIT P4: TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER TO THIRD RESPONDENT DATED 28.12.2015.

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EXHIBIT P5: TRUE COPY OF THE REPLAY ISSUED BY THE THIRD RESPONDENT TO THE PETITIONER DATED 31.12.2015.

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RESPONDENT(S)' EXHIBITS: NIL

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/TRUE COPY/

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P.S. TO JUDGE

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A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.4647 of 2016

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- - - - Dated this the 5^th day of April 2016

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JUDGMENT

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The petitioner, who had availed a housing loan, an over draft facility and an agricultural term 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. Exts.P2 and P3 are the notices issued petitioner. 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

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W.P.(c).No.4647 of 2016

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: 2 :

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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 overdue amount, in respect of the housing loan, is stated to be Rs.2,53,018/-. Similarly, the total outstanding amount in respect of the other loans is stated to be Rs.42,03,654/-. Accordingly, if the petitioner remits the total amount of Rs.44,56,672/- together with accrued interest in eleven equal and successive monthly installments commencing from 20.04.2016, and continues to keep up the regular installment payments as per the original loan schedule in the housing loan accounts, 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 furnish the petitioner with an up-to-date statement of the dues position, within 10 days from today, so as to enable the petitioner to effect repayment as per the directions in this judgment.

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Sd/-

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sm/

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A.K.JAYASANKARAN NAMBIAR JUDGE

Rajeev Babu C v. Federal Bank

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Rajeev Babu C v. Federal Bank

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