Dismissed

Bijumon K.T. v. the Manager, Bank of India

Kerala HC15 Mar 2016WP(C)/5688/2016

Case brief

AI extract

What is this about?

In this writ petition, the petitioner challenged recovery proceedings under the SARFAESI Act initiated by the bank due to loan default. Considering the petitioner's plea of financial hardship, the court allowed installment repayment over a single lump sum.

What did the court decide?

Proceedings kept in abeyance upon payment of Rs.1,00,000/- by 30.04.2016 and regular installment payments thereafter.

Bijumon K.T. Vs the Manager, Bank of India — 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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TUESDAY, THE 15TH DAY OF MARCH 2016/25TH PHALGUNA, 1937

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WP(C).No. 5688 of 2016 (I)

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PETITIONER(S):

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BIJUMON K.T., S/O.BHASKARAN, 'AISWARYA', KAKKARANTAVIDA, KODIYERI (P.O), THALASSERY, KANNUR DISTRICT-71.

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BY ADV. SRI.MOHANAN V.T.K

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RESPONDENT(S):

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1. THE MANAGER, BANK OF INDIA, THALASSERY BRANCH, KANNUR DISTRICT, PIN-670 101.

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2. THE AUTHORISED OFFICER & CHIEF MANAGER, BANK OF INDIA, THALASSERY, KANNUR DISTRICT, PIN-670 101.

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BY ADV. SRI.P.C.CHACKO, S.C

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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Msd.

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WP(C).No. 5688 of 2016 (I)

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APPENDIX

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PETITIONER(S)' EXHIBITS :

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EXHIBIT P1: TRUE COPY OF THE NOTICE ISSUED UNDER RULE 8(1) OF THE SECURITY INTEREST ENFORCEMENT RULES. EXHIBIT P2: TRUE COPY OF THE CREDIT GUARANTEE FUND SCHEME.

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RESPONDENT(S)' EXHIBITS :

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---------------------------

NIL

//TRUE COPY//

P.A.TO JUDGE.

Msd.

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.5688 of 2016 ............................................................. Dated this the 15^th day of March, 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.P1 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. 5688 of 2016

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-2-

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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 is stated to be Rs.1,00,000/- together with accrued interest. Accordingly, if the petitioner pays the said amount of Rs.1,00,000/- on or before 30.04.2016, and continues to keep up the regular installment payments as per the original loan schedule, then the 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-to-date statement of accounts so as to enable the petitioner to discharge the

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-3-

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W.P.(C). No. 5688 of 2016

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liability in accordance with the directions in this judgment.

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/15.3.16

Bijumon K.T. v. the Manager, Bank of India

Case brief

What is this about?

What did the court decide?

Bijumon K.T. v. the Manager, Bank of India

Case brief

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