Partly allowed

Radhamma Amma v. the Co-Operative Urban Bank Ltd. NO.1909

Kerala HC7 Jan 2016WP(C)/534/2016

Case brief

AI extract

What is this about?

In a writ petition challenging SARFAESI Act recovery proceedings for a loan default, the High Court of Kerala allowed the petitioner to remit the outstanding amount in five monthly installments. Pending compliance, the court stayed the recovery steps initiated by the bank.

What did the court decide?

Stay of recovery proceedings on payment of Rs.1,70,000 in five monthly installments commencing 25.01.2016, subject to continued regular payments.

Radhamma Amma Vs the Co-Operative Urban Bank… — 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 JANUARY 2016/17TH POUSHA, 1937

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WP(C).No. 534 of 2016 (N)

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PETITIONER(S):

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RADHAMMA AMMA, W/O.GOPALAKRISHNA PILLAI, AGED 58 YEARS, BINDU VILASAM, VENDAR P.O., PUTHOOR VILLAGE, KOTTARAKKARA TALUK, KOLLAM, PIN-691 507.

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BY ADV. SRI.AJAYA KUMAR. G

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RESPONDENT(S):

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1. THE CO-OPERATIVE URBAN BANK LTD NO.1909, REPRESENTED BY AUTHORIZED OFFICER, THE CO-OPERATIVE URBAN BANK LTD. NO.1909, P.B. NO.12, KOTTARAKKARA, KOLLAM, PIN-691 506.

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2. THE AUTHORIZED OFFICER, THE CO-OPERATIVE URBAN BANK LTD. NO.1909, P.B. NO.12, KOTTARAKKARA, KOLLAM-691 506.

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3. THE MANAGER, THE CO-OPERATIVE URBAN BANK LTD. NO.1909, PUTHOOR BRANCH, KOTTARAKKARA, KOLLAM, PIN-691 506.

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BY ADV. SMT.DEEPA.V, SC.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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rs.

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WP(C).No. 534 of 2016 (N)

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APPENDIX

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PETITIONER'S EXHIBITS:-

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EXT.P1 COPY OF THE NOTICE DATED 07/09/2015 ISSUED TO THE PETITIONER BY THE ADVOCATE COMMISSIONER. EXT.P2 COPY OF THE RECEIPT DATED 15/10/2015. EXT.P3 COPY OF THE RECEIPT DATED 28/12/2015.

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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.534 of 2016

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- - - - Dated this the 7^th day of January 2016

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JUDGMENT

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The petitioner, who had availed 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.P1 is the notice issued to the petitioner by the Advocate Commissioner. 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 her to remit the balance amounts outstanding to the bank in easy installments. Taking into

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W.P.(c).No.534 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 overdue amount, in respect of the loan, is stated to be Rs.1,70,000/- together with accrued interest. Accordingly, if the petitioner remits the aforesaid amount of Rs.1,70,000/- together with accrued interest in five equal and successive monthly installments commencing from 25.01.2016, and continues to keep up the regular installment payments as per the original loan schedule, then the recovery steps initiated against her 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, she will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against her from the stage at which they presently stand.

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(iii)The respondent bank shall furnish the petitioner with an up-to-date statement of the dues position, within one week from today, so as to enable the petitioner to effect repayment as per the directions in this judgment.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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sm/

Radhamma Amma v. the Co-Operative Urban Bank Ltd. NO.1909

Case brief

What is this about?

What did the court decide?

Radhamma Amma v. the Co-Operative Urban Bank Ltd. NO.1909

Case brief

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What did the court decide?

What the court decided

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