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Vijayan M. v. the Calicut Co-Operative Urban Bank Ltd.

Kerala HC7 Jan 2016WP(C)/557/2016

Case brief

AI extract

What is this about?

In a writ petition challenging SARFAESI Act recovery proceedings, the High Court of Kerala directed the petitioner to clear a stated outstanding balance of Rs. 3,51,369 via ten equal monthly installments to suspend bank action, warning that default would reopen proceedings and requiring the bank to provide an updated account statement.

What did the court decide?

Recovery proceedings kept in abeyance against the petitioner if he clears Rs.3,51,369 plus interest in ten equal monthly installments commencing from 25.01.2016. Bank to provide updated account statem

Vijayan M. Vs the Calicut Co-Operative Urban… — 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 THURSDAY, THE 7TH DAY OF JANUARY 2016/17TH POUSHA, 1937

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WP(C).No. 557 of 2016 (T)

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PETITIONER :

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VIJAYAN M., AGED 56 YEARS, S/O.APPUKANNAN, MOONAPURATH HOUSE, KARUVISSERY P.O., KOZHIKODE - 673 010.

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BY ADV. SRI.S.K.SAJU

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RESPONDENT :

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THE CALICUT CO-OPERATIVE URBAN BANK LTD., HEAD OFFICE, KALLAI ROAD, CHALAPPURAM P.O., KOZHIKODE - 673 002, REPRESENTED BY ITS MANAGER/AUTHORIZED OFFICER.

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BY SRI.DEVAPRASANTH.P.J.

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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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sts

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WP(C).No. 557 of 2016 (T)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXHIBIT P1. TRUE COPY OF THE NOTICE DATED 17.04.2014 ISSUED BY THE RESPONDENT TO THE PETITIONER. EXHIBIT P2. TRUE COPY OF THE NOTICE DATED 07.08.2014 ISSUED BY THE RESPONDENT TO THE PETITIONER. EXHIBIT P3. TRUE COPY OF THE NOTICE DATED 04.02.2015 ISSUED BY THE RESPONDENT TO THE PETITIONER. EXHIBIT P4. TRUE COPY OF THE NOTICE DATED 20.03.2015 ISSUED BY THE ADVOCATE COMMISSIONER TO THE PETITIONER. EXHIBIT P5. TRUE COPY OF THE NOTICE DATED 21.08.2015 ISSUED BY THE RESPONDENT TO THE PETITIONER.

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RESPONDENT(S)' EXHIBITS:

NIL

/TRUE COPY/

P.A.TO JUDGE

sts

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C). No. 557 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.P4 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 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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-2-

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W.P.(C). No. 557 of 2016

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(i) The total outstanding amount, in respect of the loan, is stated to be Rs.3,51,369/- together with accrued interest. Accordingly, if the petitioner remits the aforesaid amount of Rs.3,51,369/- together with accrued interest in ten equal and successive monthly installments commencing from 25.01.2016, 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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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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das /07.01.2016

Vijayan M. v. the Calicut Co-Operative Urban Bank Ltd.

Case brief

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Vijayan M. v. the Calicut Co-Operative Urban Bank Ltd.

Case brief

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