Allowed

M.K.Soman v. the Authorised Officer, the Kottayam Co-Op. Urban Bank

Kerala HC15 Feb 2016WP(C)/5137/2016

Case brief

AI extract

What is this about?

This High Court disposed of a writ petition challenging recovery proceedings under the SARFAESI Act. The court allowed the petitioners to remit the total overdue amount including interest in four monthly installments. Recovery steps shall be abeyance if installments are paid regularly.

What did the court decide?

Recovery proceedings to be kept in abeyance if petitioners remit total overdue amount of Rs. 1,20,000 plus accrued interest in four equal monthly installments commencing from 29.02.2016.

M.K.Soman Vs the Authorised Officer, the Kottayam Co-Op… — Consumer Protection | 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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MONDAY, THE 15TH DAY OF FEBRUARY 2016/26TH MAGHA, 19372

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WP(C).No. 5137 of 2016 (N)

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PETITIONER(S) :

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1. M.K.SOMAN, AGED 51 YEARS, S/O.THANKAPPAN, PAATHIKKAL HOUSE, AREEPARAMBU P.O., MANARKADU VILLAGE, KOTTAYAM 686 501.

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2. KUMARI SOMAN, AGED 47 YEARS W/O.M.K. SOMAN, PAATHIKKAL HOUSE, AREEPARAMBU P.O., MANARKADU VILLAGE, KOTTAYAM 686 501.

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BY ADV. SRI.MANU RAMACHANDRAN

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RESPONDENT(S) :

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1. THE AUTHORISED OFFICER, THE KOTTAYAM CO-OP. URBAN BANK LTD. NO.421, SARFAESI ACT, KOTTAYAM P.O., KOTTAYAM 686 001.

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2. THE BRANCH MANAGER, THE KOTTAYAM CO OPERATIVE URBANK BANK LTD. NO.421, AYARKUNNAM BRANCH, KOTTAYAM 686564.

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BY SRI.SURIN GEORGE IYPE, SC, CO-OP. URB.BANK,KTM

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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AMV

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: 2 :

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WP(C).No. 5137 of 2016 (N)

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APPENDIX

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PETITIONER(S)' EXHIBITS :

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P1: COPY OF THE LOAN LEDGER REPORT DATED 08.02.2016 ISSUED BY THE 2ND RESPONDENT.

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P2: COPY OF THE NOTICE UNDER SECTION 13 (2) OF SARFESI ACT DATED 09.06.2015 ISSUED BY THE 1ST RESPONDENT.

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P3: COPY OF THE NOTICE NIL DATED FROM THE ADVOCATE COMMISSIONER APPOINTED BY THE CHIEF JUDICIAL MAGISTRATE IN CMP.NO.3058/2015.

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RESPONDENT(S)' EXHIBITS : NIL

/TRUE COPY/

P.A.TO JUDGE

AMV

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No. 5137 of 2016 (N)

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

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JUDGMENT

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The petitioners, who had availed of a loan from the 2^nd respondent Bank, defaulted in repayment of the same. Consequently, the respondent initiated proceedings under the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest Act, 2002, hereinafter referred to as the ‘SARFAESI Act’, against the petitioners. Ext.P2 is the notice issued under Section 13(2) of the SARFAESI Act to the petitioners in that regard. Ext.P3 is the copy of the notice issued by the Advocate Commissioner pursuant to the order of the Chief Judicial Magistrate, to take possession of the immovable property that was offered as security to the respondent Bank, for the loan availed by the petitioners. In the writ petition, the petitioners impugn the steps initiated by the respondent Bank for recovery of the loan amounts.

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Heard Sri.Manu Ramachandran, the learned counsel appearing for the petitioners and Sri.Surin George Iype, the learned Standing counsel appearing for 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

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W.P.(C) No. 5137 of 2016 (N)

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prayer of the petitioners is to permit them to remit the total overdue amount to the respondents 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 loan is stated to be Rs.1,20,000/-, together with accrued interest. Accordingly, if the petitioners remit the said amount of Rs.1,20,000/- together with accrued interest, in four equal and successive monthly installments commencing from 29.02.2016, and continues to pay the regular monthly installments as per the original loan schedule, then, the recovery steps initiated against them by the respondents shall be kept in abeyance.

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ii. It is 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 respondents will be free to continue the recovery proceedings against them from the stage at which they presently stand.

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