Partly allowed

Surendran A.B. v. Federal Bank Ltd.

Kerala HC2 Feb 2016WP(C)/467/2016

Case brief

AI extract

What is this about?

The High Court of Kerala disposed of a writ petition by permitting the petitioner to remit an outstanding loan of Rs.91,50,256/-plus interest in ten monthly installments instead of facing immediate recovery proceedings under the SARFAESI Act.

What did the court decide?

Permission to remit Rs.91,50,256/-plus interest in ten monthly installments commencing 20.02.2016, with recovery proceedings kept in abeyance pending payment; default leads to resumption of proceeding

Surendran A.B. Vs Federal Bank Ltd. — 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 2ND DAY OF FEBRUARY 2016/13TH MAGHA, 1937

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WP(C).No. 467 of 2016

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PETITIONER(S) :

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SURENDRAN A.B., AGED 58 YEARS, S/O.BHASKARAN, RESIDING AT EDAPARAMBATH HOUSE, ADIMALY POST, POLINJAPALAM, MANNNAMKANDOM VILLAGE, IDUKKI DISTRICT- 685 561.

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BY ADV. SRI.S.JIJI

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RESPONDENT(S) :

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1. FEDERAL BANK LTD., ADIMALY BRANCH, MARIYA COMPLEX, OPP. V.T. TOURIST HOME, N.H. ROAD, ADIMALY, IDUKKI - 685 561, REPRESENTED BY ITS MANAGER.

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2. THE AUTHORISED OFFICER,

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UNDER SARFAESI ACT, (CHIEF MANAGER), ADIMALY BRANCH, FEDERAL BANK LIMITED, MARIYA COMPLEX, OPP. V.T. TOURIST HOME, N.H. ROAD, ADIMALY, IDUKKI - 685 561.

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BY ADVS. SRI.MOHAN JACOB GEORGE

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SMT.P.V.PARVATHI SMT.REENA THOMAS SRI.T.K.NAVAS

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

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Msd.

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WP(C).No. 467 of 2016 ()

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APPENDIX

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PETITIONER(S)' EXHIBITS :

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P1: TRUE COPY OF THE NOTICE DATED 29/05/2015 BY THE 1ST RESPONDENT.

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P2: TRUE COPY OF THE NOTICE DATED 29/07/2015 ISSUED BY THE 2ND RESPONDENT.

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P3: TRUE COPY OF THE REPLY NOTICE DATED 29/12/2015 ISSUED ON BEHALF OF THE PETITIONER.

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P4: TRUE COPY OF THE POSSESSION NOTICE DATED 31/12/2015.

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RESPONDENT(S)' EXHIBITS :

NIL

//TRUE COPY//

P.A.TO JUDGE.

Msd.

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C). No. 467 of 2016

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===================================================== Dated this the 2^nd day of February, 2016

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JUDGMENT

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The petitioner, who had availed of a cash credit facility 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.P4 is the possession notice issued to the petitioner under the SARFAESI Act. Apart from that, the bank is also stated to have issued a notice dated 04.01.2016 under Section 13(4) of the Act. 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. 467 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 outstanding amount, in respect of the loan, is stated to be Rs.91,50,256/- together with accrued interest. Accordingly, if the petitioner remits the aforesaid amount of Rs.91,50,256/- together with accrued interest in ten equal and successive monthly installments commencing from 20.02.2016, 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 /02.02.2016

Surendran A.B. v. Federal Bank Ltd.

Case brief

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Surendran A.B. v. Federal Bank Ltd.

Case brief

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