Disposed

Rejani R. v. Thiruvananthapuram District Co-Operative Bank Limited

Kerala HC6 Apr 2016WP(C)/6627/2016

Case brief

AI extract

What is this about?

A writ petition filed by a loan defaulting petitioner challenging recovery steps under the SARFAESI Act by a co-operative bank. The High Court disposed of the petition allowing repayment of overdue amounts and accrued interest in ten monthly installments, staying recovery proceedings if the petitioner adheres to the schedule. It also required the bank to provide an updated dues statement and set c

What did the court decide?

Recovery proceedings stayed pending payment of Rs.6,17,292/- and accrued interest in ten monthly installments. Bank to furnish updated dues statement. Default leads to resumption of proceedings.

Rejani R. Vs Thiruvananthapuram District Co-Operative… — 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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WEDNESDAY, THE 6TH DAY OF APRIL 2016/17TH CHAITHRA, 1938

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WP(C).No. 6627 of 2016 (C)

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PETITIONER(S):

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REJANI R., D/O.SANTHA, RAMASERIKONAM KIZHAKKUMKARA PUTHEN VEEDU, MUKKAMPALAMOODU, NEYYATTINKARA TALUK, THIRUVANANTHAPURAM.

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BY ADV. SRI.S.MOHAMMED AL RAFI

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RESPONDENT(S):

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THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK LIMITED, REPRESENTED BY AUTHORISED OFFICER, EAST FORT, TRIVANDRUM-695 023.

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BY ADV. SRI.T.R.HARIKUMAR, S.C

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06-04-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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Msd.

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WP(C).No. 6627 of 2016 (C)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXT.P1: TRUE COPY OF THE POSSESSION NOTICE DATED 09/02/2016 ISSUED BY THE RESPONDENT TO THE PETITIONER. EXT.P2: TRUE COPY OF THE MAHAZAR DATED 09/02/2016 ISSUED BY THE RESPONDENT. 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. 6627 of 2016

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- - - - Dated this the 6^th day of April 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.P1 is the possession notice issued to the petitioner under 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 case and the submissions made across the bar, I note that the sole prayer of the petitioner is to permit her to remit the balance amounts outstanding to the bank in easy installments. Taking into

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W.P.(c).No.6627 of 2016

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: 2 :

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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 overdue amount, in respect of the loan as on 31.03.2016, is stated to be Rs.6,17,292/-. Accordingly, if the petitioner remits the aforesaid amount of Rs.6,17,292/- together with accrued interest from 31.03.2016 in ten equal and successive monthly installments commencing from 20.04.2016 and continues to keep up the regular installment payments as per the original loan schedule, then the recovery steps initiated against her 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, she will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against her from the stage at which they presently stand.

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(iii)The respondent bank shall furnish the petitioner with an up-to-date statement of the dues position, within 10 days from today, so as to enable the petitioner to effect repayment as per the directions in this judgment.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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sm/

Rejani R. v. Thiruvananthapuram District Co-Operative Bank Limited

Case brief

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Rejani R. v. Thiruvananthapuram District Co-Operative Bank Limited

Case brief

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