Allowed

Surendran v. Kerala Mercantile Co-Operative Bank Ltd.

Kerala HC15 Mar 2016WP(C)/4888/2016

Case brief

AI extract

What is this about?

In a writ petition by loan defaulters challenging SARFAESI Act proceedings, the High Court of Kerala allowed the petition on the plea of financial hardship. The court granted permission to pay the outstanding principal and interest in six equal monthly installments. Recovery proceedings were kept in abeyance upon compliance.

What did the court decide?

Permission granted to pay the total outstanding loan amount with interest in six equal monthly installments starting March 28, 2016; recovery proceedings kept in abeyance upon compliance.

Surendran Vs Kerala Mercantile Co-Operative… — 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 15TH DAY OF MARCH 2016/25TH PHALGUNA, 1937

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WP(C).No. 4888 of 2016 (I)

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PETITIONER(S):

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1. SURENDRAN A.K., AGED 60 YEARS, S/O.KUTTAPPAN, 8/706, SREYAS, CHERUVANNUR, KOLATHARA P.O., KOZHIKODE - 673 655.

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2. VIJAYAN A., AGED 60 YEARS, S/O.SANKUNNI, ALAPRATH HOUSE, PALACE ROAD, MANKAVU P.O., KOZHIKODE - 673 007.

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BY ADV. SRI.S.K.SAJU.

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RESPONDENT(S):

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KERALA MERCANTILE CO-OPERATIVE BANK LTD., VYAPARA BHAVAN, BANK ROAD, KOZHIKODE - 673 001, REPRESENTED BY ITS MANAGER / AUTHORIZED OFFICER.

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BY ADV. SRI.A.KRISHNAN.

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 15-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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rs.

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WP(C).No. 4888 of 2016 (I)

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APPENDIX

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PETITIONER'S EXHIBITS:-

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P1 : TRUE COPY OF THE NOTICE DT 28-11-2014 ISSUED BY THE RESPONDENT TO THE PETITIONERS.

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P2 : TRUE COPY OF THE NOTICE DT 22-08-2015 ISSUED BY THE RESPONDENT TO THE PETITIONERS.

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P3 : TRUE COPY OF THE NOTICE DT 04-02-2015 ISSUED BY THE RESPONDENT TO THE PETITIONER.

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P4 : TRUE COPY OF THE ASWAS PROPOSAL GIVEN TO THE 1ST PETITIONER.

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P5 : TRUE COPY OF THE ASWAS PROPOSAL GIVEN TO THE 2ND PETITIONER.

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P6 : TRUE COPY OF THE NOTICE DT 28-01-2016 ISSUED BY THE ADVOCATE COMMISSIONER, TO THE PETITIONERS.

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RESPONDENT'S EXHIBITS:- NIL.

//TRUE COPY//

P.S. TO JUDGE

rs.

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.4888 of 2016

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............................................................. Dated this the 15^th day of March, 2016

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J U D G M E N T

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The petitioners, who had availed of 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. Ext.P6 is the notice of the Advocate commissioner. In the writ petition, the petitioners impugn the steps initiated by the respondent bank for recovery of the loan amounts.

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I have heard the learned counsel appearing for the petitioners as also the learned Standing counsel appearing for 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

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W.P.(C). No.4888 of 2016

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-2-

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prayer of the petitioners is to permit them to remit the balance amounts outstanding to the respondent bank in easy installments. Taking into account the plea of financial hardship raised by the petitioners, I dispose the writ petition with the following directions:-

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(i) The total overdue amount, in respect of the loans availed by the petitioners is stated to be Rs.2,49,116/- + Rs.1,52,970/- together with accrued interest. Accordingly, if the petitioners pay the said amount of Rs.4,02,086/- together with accrued interest in six equal and successive monthly installments commencing from 28.03.2016, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against them by the respondent bank shall be kept in abeyance.

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(ii) It is further made clear that if the petitioners commit a default in respect of any of the installments, they will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against them from the stage at which they presently stand.

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-3-

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W.P.(C). No.4888 of 2016

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(iii) The respondent bank shall, within ten days from today, provide the petitioners with an upto-date statement of accounts so as to enable the petitioners 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/15.3.16

Surendran v. Kerala Mercantile Co-Operative Bank Ltd.

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Surendran v. Kerala Mercantile Co-Operative Bank Ltd.

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