Disposed

Nizamudeen v. the Chief Manager

Kerala HC28 Mar 2016WP(C)/5365/2016

Case brief

AI extract

What is this about?

In this writ petition, the High Court of Kerala permitted a defaulting bank loan petitioner to remit the outstanding amount in fifteen monthly installments. Consequently, the court directed the respondent bank to keep its recovery proceedings under the SARFAESI Act in abeyance, provided the petitioner adheres to the payment schedule.

What did the court decide?

Recovery proceedings kept in abeyance if petitioner remits Rs.6,57,49,004 plus interest in fifteen monthly installments; bank to provide account statement within ten days.

Nizamudeen Vs the Chief Manager — Banking and Recovery | 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 28TH DAY OF MARCH 2016/8TH CHAITHRA, 1938

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WP(C).No. 5365 of 2016 (U)

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PETITIONER(S):

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NIZAMUDEEN, AGED 48 YEARS, S/O. BADARUDEEN, PROPRIETOR M/S. RIZA CASHEW, KOCHUTHODIYIL, PEROOR, KUTTICHIRA, TKMC P.O., KOLLAM DISTRICT-691 005.

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BY ADVS. SRI.C.RAJENDRAN SRI.K.R.RANJITH

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RESPONDENT(S):

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1. THE CHIEF MANAGER (AUTHORIZED OFFICER) FEDERAL BANK LTD., PUTHANPURAYIL, ARCHED HOSPITAL JUNCTION, KUNDARA, KOLLAM DISTRICT-691 501.

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2. THE CHIEF MANAGER,

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FEDERAL BANK, RCH, THIRUVANANTHAPURAM-695 001.

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R1&2 BY ADV. SRI.REJI GEORGE R1&2 BY ADV. SMT.SIJI JOY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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RVS.

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WP(C).No. 5365 of 2016 (U)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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EXT. P1 : A COPY OF THE LETTER DTD.9.3.2015 BY THE PETITIONER. EXT. P2 : A COPY OF THE NOTICE DTD.5.10.2015 ISSUED BY THE 1ST RESPONDENT.

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EXT. P3 : COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT U/S.13 (4) OF THE SARFAESI ACT DTD.6.1.2016 U/S.13(4) OF THE SARFAESI ACT.

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RESPONDENT(S)' EXHIBITS:

NIL.

/TRUE COPY/

P.A. TO JUDGE

RVS.

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C). No. 5365 of 2016

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===================================================== Dated this the 28^th day of March, 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. Ext.P3 is the notice issued to the petitioner under Section 13(4) of the SARFAESI Act. 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

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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

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W.P.(C). No. 5365 of 2016

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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 outstanding amount, in respect of the loan, is stated to be Rs.6,57,49,004/- as on today. Accordingly, if the petitioner remits the aforesaid amount of Rs.6,57,49,004/- together with accrued interest in fifteen equal and successive monthly installments commencing from 20.04.2016, 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) It is made clear that nothing in this judgment shall stand in the way of the petitioner approaching the bank for renewal of the cash credit facility and the

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-3-

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W.P.(C). No. 5365 of 2016

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respondent bank from considering the same in accordance with law.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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das /28.03.2016

Nizamudeen v. the Chief Manager

Case brief

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Nizamudeen v. the Chief Manager

Case brief

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