Allowed

M/S Dots Represented by Its Partner v. the Authorised Officer, the Federal Bank Limited

Kerala HC7 Apr 2016WP(C)/5304/2016

Case brief

AI extract

What is this about?

The High Court of Kerala, in this civil writ petition, addressed the petitioner's default on a bank loan and subsequent recovery proceedings under the SARFAESI Act. Accepting the plea of financial hardship, the Court stayed further recovery steps conditioned upon the petitioner repaying the total overdue amount plus interest in ten equal monthly installments.

What did the court decide?

Writ petition allowed with directions to pay Rs.4,11,412/- plus interest in ten monthly installments to stay recovery proceedings; bank must provide updated statement.

M/S Dots Represented by Its Partner Vs the… — 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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THURSDAY, THE 7TH DAY OF APRIL 2016/18TH CHAITHRA, 1938

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WP(C).NO. 5304 OF 2016 (K)

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PETITIONER(S):

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M/S DOTS NO.XXVII/417C, 2ND FLOOR, VELLAKKAL BUILDING, V.P.MARAKKAR ROAD, EDAPPALLY, REPRESENTED BY ITS PARTNER MR.ANWAR, S/O. ABDULLA, AGED36 YEARS, THEKKEMALIL HOSUE, PONJASSERRY P.O., THANDEKKADU, PERUMBAVOOR.

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BY ADVS. SRI.T.K.RAJESHKUMAR SMT.T.N.BINDU KUM.APARNA SOMARAJAN SMT.PRABHA JOSE

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RESPONDENT(S):

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1. THE AUTHORISED OFFICER, THE FEDERAL BANK LIMITED SEAPORT AIRPORT ROAD, KAKKANAD, COCHIN - 682 030.

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2. THE FEDERAL BANK LIMITED REGISTERED OFFICE, ALWAYE, KERALA,

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SEAPORT AIRORT ROAD, KAKKANAD, COCHIN - 682 030.

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3. THE BRANCH MANAGER THE FEDERAL BANK LIMITED,

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SEAPORT AIRPORT ROAD, KAKKANAD, COCHIN - 682 030.

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R1 BY ADV. SRI.A.ANTONY R1 BY ADV. SMT.LEELAMMA ANTONY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07-04-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).NO. 5304 OF 2016 (K)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1 - A TRUE COPY OF THE LOAN SANCTION LETTER DT. 23.12.2010 ISSUED BY REGISTERED OFFICE OF THE FEDERAL BANK LIMITED, ALUVA.

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P2 - A TRUE COPY OF THE BANK STATEMENT FOR THE YEAR 2015-16.

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P3 - A TRUE COPY OF THE NOTICE DT. 07.07.2014 ISSUED UNDER SECTION 13 (2) OF THE SARFEASAI ACT.

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P4 - A TRUE COPY OF THE NOTICE DT. 27.10.2014 UNDER 13(2) OF THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002.

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P5 - A TRUE COPY OF THE POSSESSION NOTICE DT. 29.12.2015 AFFIXED BY THE RESPONDENTS.

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RESPONDENT(S)' EXHIBITS:NIL

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//TRUE COPY//

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P.A TO JUDGE

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A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.5304 of 2016 ............................................................. Dated this the 7^th day of April, 2016

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J U D G M E N T

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The petitioner, who had availed of a 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. Ext.P5 is the possession notice. 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 for the petitioner 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.5304 of 2016

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prayer of the petitioner is to permit him to remit the balance amounts outstanding to the respondent 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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(i) The total overdue amount, in respect of the loan availed by the petitioner as on today, is stated to be Rs.4,11,412/-. Accordingly, if the petitioner pays the said amount of Rs.4,11,412/together with accrued interest in ten equal and successive monthly installments commencing from 30.04.2016, and continues to keep up the regular installment payments as per the original loan schedule, then further proceedings initiated against him by the respondent bank shall be kept in abeyance.

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(ii) It is further 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 up-todate statement of accounts so as to enable the

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W.P.(C). No.5304 of 2016

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petitioner to discharge the liability in accordance with the directions in this judgment.

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(iv) It is made clear that nothing in this judgment shall stand in the way of the petitioner approaching the respondents for availing the benefit of a One Time Settlement Scheme and the respondents from considering the same in accordance with any scheme that is in vogue.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/7.4.16

M/S Dots Represented by Its Partner v. the Authorised Officer, the Federal Bank Limited

Case brief

What is this about?

What did the court decide?

M/S Dots Represented by Its Partner v. the Authorised Officer, the Federal Bank Limited

Case brief

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What did the court decide?

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