Partly allowed

Sharly James v. Chief Manager

Kerala HC7 Apr 2016WP(C)/6021/2016

Case brief

AI extract

What is this about?

Welcoming a plea by guarantors defaulting on a bank loan seeking to repay the outstanding amount of nearly Rs.45.56 lakh via equal monthly installments citing financial hardship, the Court stayed further recovery proceedings under the SARFAESI Act contingent upon strict adherence to this repayment schedule.

What did the court decide?

Permission granted to remit Rs.45,55,962 plus interest in 11 monthly installments starting April 30, 2016, staying further recovery proceedings; bank directed to submit statement; continued proceeds o

Sharly James Vs Chief Manager — 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 APRIL 2016/18TH CHAITHRA, 1938

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WP(C).No. 6021 of 2016 (C)

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PETITIONER(S) :

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1. SHARLY JAMES, AGED 49 YEARS, W/O.JAMES KUTTY, MAMBRAYIL HOUSE, MAYITHARA P.O. CHANGAMKARY, ALAPPUZHA DISTRICT, PIN - 688 539.

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2. JAMES KUTTY, AGED 53 YEARS,

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S/O.THOMAS, MAMBRAYIL HOUSE, MAYITHARA P.O.,

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CHANGAMKARY, ALAPPUZHA DISTRICT, PIN - 688 539.

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BY ADVS. SRI.R.ROHITH

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SRI.MANOJ GEORGE

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RESPONDENT(S) :

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1. CHIEF MANAGER, FEDERAL BANK, ERNAKULAM BRANCH- 682 018.

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2. AUTHORIZED OFFICER, FEDERAL BANK, BANERJI ROAD, ERNAKULAM- 682 018.

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BY ADVS. SRI.A.ANTONY SMT.LEELAMMA ANTONY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07-04-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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Msd.

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WP(C).No. 6021 of 2016 (C)

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APPENDIX

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PETITIONER(S)' EXHIBITS :

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EXT.P-1: A TRUE COPY OF THE NOTICE DATED 25.07.2015 ISSUED BY THE RESPONDENTS TO THE PETITIONER.

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EXT.P-2: A TRUE COPY OF THE POSSESSION NOTICE DATED 17.12.2015 ISSUED BY THE RESPONDENTS TO THE PETITIONERS.

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EXT.P-3: A TRUE COPY OF THE NOTICE DATED 21.01.2016 ISSUED BY THE RESPONDENTS TO THE PETITIONERS.

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RESPONDENT(S)' EXHIBITS :

NIL

//TRUE COPY//

P.A.TO JUDGE.

Msd.

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.6021 of 2016

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............................................................. Dated this the 7^th day of April, 2016

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J U D G M E N T

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The petitioners, who stood guarantors to a loan disbursed by 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.P2 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 for the petitioners 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.6021 of 2016

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-2-

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prayer of the petitioners is to permit them to remit the balance amounts outstanding to the bank in easy installments. 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 total amount outstanding from the petitioners to the respondent bank, is stated to be Rs.45,55,962/as on 31.03.2016. Accordingly, if the petitioners pay the said amount of Rs.45,55,962/- as on 31.03.2016 together with accrued interest in 11 equal and successive monthly installments commencing from 30.04.2016, then the further proceedings initiated against them by the respondent bank shall be kept in abeyance.

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(ii) It is further made clear that if the petitioners commit a default in respect of any of the installments, they will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against them from the stage at which they presently stand.

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(iii) The respondent bank shall, within ten days from today, provide the petitioners with an upto-date statement of accounts so as to enable the petitioners to discharge the liability in accordance with the directions in this judgment.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/7.4.16

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W.P.(C). No.6021 of 2016

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Sharly James v. Chief Manager

Case brief

What is this about?

What did the court decide?

Sharly James v. Chief Manager

Case brief

What is this about?

What did the court decide?

What the court decided

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