Partly allowed

Aboobacker P v. Federal Bank Ltd.

Kerala HC26 Feb 2016WP(C)/5227/2016

Case brief

AI extract

What is this about?

Petitioner, a defaulting borrower facing harassment after asset possession under SARFAESI Act, sought installment relief. High Court accepted plea of financial hardship and allowed installment payment of outstanding dues to stay recovery, while permitting limited use of the secured asset.

What did the court decide?

Stay of recovery against payment of Rs.45,52,483 plus interest in ten monthly installments; bank to provide updated account statement; permission to operate sawmill on secured asset during stay.

Aboobacker P 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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FRIDAY, THE 26TH DAY OF FEBRUARY 2016/7TH PHALGUNA, 1937

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WP(C).No. 5227 of 2016 (C)

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PETITIONER(S):

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ABOOBACKER P, SON OF KUNHIMOIDEEN, PARAMBADAN HOUSE, CHENGOTTOR PO, KOTTAKKAL, MALAPPURAM.

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BY ADV. SRI.JACOB SEBASTIAN

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RESPONDENT(S):

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FEDERAL BANK LTD, BAVAS ARCADE, DOWNHILL PO, MALAPPURAM 676 519, REP. BY ITS AUTHORISED OFFICE, PIN 678 519.

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BY ADVS. SRI.LAWRENCE D'CUNHA

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SRI.K.MADHUSOODANAN SRI.T.G.PAUL SRI.MATHEW JACOB (KUNNATHU) SRI.RATHANKUMAR RAJARAM KAMATH

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 5227 of 2016 (C)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1A TRUE COPY OF THE MEDICAL RECORDS OBTAINED FROM THE DEPARTMENT OF PEDIATRIC CARDIOLOGY, MALABAR INSTITUTE OF MEDICAL SCIENCES

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P2A TRUE COPY OF THE POSSESSION NOTICE DATED OCTOBER 13, 2015 ISSUED BY THE RESPONDENT

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P3A TRUE COPY OF THE CMP NO.405/2016 OF THE COURT OF THE CHIEF JUDICIAL MAGISTRATE, PALAKKAD

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P4A TRUE COPY OF THE ORDER DATED JANUARY 20, 2016 IN CMP 405/2016 OF THE COURT OF HTE CHIEF JUDICIAL MAGISTRATE, PALAKKAD.

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RESPONDENT(S)' EXHIBITS

NIL.

/ TRUE COPY /

P.S. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C). No. 5227 of 2016

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Dated this the 26^rd 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. It is stated that the physical possession of the secured asset has already been taken by the respondent bank.

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

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W.P.(C). No. 5227 of 2016

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(i) The total outstanding amount, in respect of the loan, is stated to be Rs.45,52,483/- together with accrued interest. Accordingly, if the petitioner remits the aforesaid amount of Rs.45,52,483/- together with accrued interest in ten equal and successive monthly installments commencing from 03.03.2016, 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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(iv) Taking note of the submission of counsel for the petitioner that prior to the bank taking possession of the secured asset, there was a working sawmill in the said land, it is made clear that while the respondent bank can continue to have possession of the secured

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W.P.(C). No. 5227 of 2016

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asset, the petitioner will be permitted to operate the sawmill using his workers, during the period when the stay granted in this judgment continues to operate.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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das /26.02.2016

Aboobacker P v. Federal Bank Ltd.

Case brief

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What did the court decide?

Aboobacker P v. Federal Bank Ltd.

Case brief

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