Allowed

Sadanandan.P v. Chief Manager

Kerala HC8 Jan 2016WP(C)/59/2016

Case brief

AI extract

What is this about?

The High Court of Kerala directed the State Bank of Travancore to stay recovery proceedings against petitioners who defaulted on housing and agricultural loans. The bank must allow payment of the total outstanding in seven equal monthly instalments. Failure to pay any instalment forfeits this benefit and permits the bank to resume recovery.

What did the court decide?

Recovery proceedings stayed; total amount payable in seven equal monthly instalments starting 25.01.2016; bank to furnish statement of dues within ten days.

Sadanandan.P Vs Chief Manager — Consumer Protection | 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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FRIDAY, THE 8TH DAY OF JANUARY 2016/18TH POUSHA, 1937

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WP(C).No. 59 of 2016 (F)

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PETITIONERS:

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1. SADANANDAN.P, VAZHAKURAYIL, PANAVALLY.P.O,

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CHERTHALA, ALAPUZHA.

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2. SINDHU SADANANDHAN,

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VAZHAKURAYIL, PANAVALLY.P.O, CHERTHALA,

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ALAPPUZHA.

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BY ADV. SRI.PRAVEEN C.PARAVATH

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RESPONDENT:

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CHIEF MANAGER-ADVANCES, AUTHORISED OFFICER, STATE BANK OF TRAVANCORE, REGIONAL OFFICE, SANATHANAPURAM, ALAPUZHA-680 003.

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BY SRI.R.S.KALKURA, SC, SBT

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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sts

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WP(C).No. 59 of 2016 (F)

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APPENDIX

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PETITIONER(S)' EXHIBITS -------------------------------------

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P1 TRUE COPYT OF THE POSSESSION NOTICE DATED 11.12.2015 ISSUED BY THE RESPONDENT.

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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.59 of 2016

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............................................................. Dated this the 8^th day of January, 2016

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J U D G M E N T

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The petitioners, who had availed of loans 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 petitioners impugn 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 petitioners as also the learned Standing counsel 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 prayer of the petitioners is to permit them to remit the balance

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W.P.(C). No.59 of 2016

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amounts outstanding to the bank in easy instalments. Taking into account the plea of financial hardship raised by the petitioners, I dispose the writ petition with the following directions:-

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(i) The overdue amount in respect of the housing loan and the agricultural term loan availed by the petitioners is stated to be Rs.28,598/+ Rs.1,78,365/respectively. Similarly for closing the cash credit facility, the petitioners are required to pay Rs.2,00,408/-. Accordingly, if the petitioners pay the total amount of Rs.4,07,371/- together with accrued interest in seven equal and successive monthly instalments commencing from 25.01.2016, and continues to keep up the regular instalments as per the original loan schedules in the housing loan account and the agricultural term loan account, the recovery steps initiated against the petitioners by the respondent bank shall be kept in abeyance.

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(ii) It is made clear that if the petitioners commit a default in respect of any of the instalments, they will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against them

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-3-

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W.P.(C). No.59 of 2016

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from the stage at which they presently stand.

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(iii) The respondent bank shall furnish the petitioners with an up-to-date statement of dues within ten days from today, so as to enable the petitioners to comply with the directions in this judgment.

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/08.01.16

Sadanandan.P v. Chief Manager

Case brief

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Sadanandan.P v. Chief Manager

Case brief

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