Partly allowed

Sreevidya.K v. Kerala Gramin Bank

Kerala HC21 Mar 2016WP(C)/7744/2016

Case brief

AI extract

What is this about?

The High Court permitted a loan defaulter to remit the outstanding amount in eight equal monthly installments. Upon compliance, the bank's recovery steps under the SARFAESI Act are kept in abeyance, with conditions on regular payment and update of dues status.

What did the court decide?

Petitioner permitted to remit Rs.79,000/- plus interest in 8 monthly installments starting 04.04.2016; recovery steps kept in abeyance; Bank to furnish dues statement within 10 days.

Sreevidya.K Vs Kerala Gramin Bank — 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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MONDAY, THE 21ST DAY OF MARCH 2016/1ST CHAITHRA, 1938

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WP(C).No. 7744 of 2016 (P)

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PETITIONER(S):

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SREEVIDYA.K, D/O.ACHUTHANANDAN K.A, VEENA HOUSE, KOOTTAKKANI, PAKKOM P.O., KASARAGOD DISTRICT.

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BY ADV. SRI.JOSE J.MATHAIKAL

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RESPONDENT(S):

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1. KERALA GRAMIN BANK, REGIONAL OFFICE, KASARAGOD-671 121, REPREENTED BY ITS CHIEF MANAGER/AUTHORISED OFFICER-671121.

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2. THE BRANCH MANAGER, TRIKKANAND BRANCH, KASARAGOD DISTRICT-671121.

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BY ADVS. SRI.K.M.ANEESH

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SRI.K.SANTHOSH KUMAR (KALIYANAM) SRI.ADARSH KUMAR SRI.BIJU VARGHESE ABRAHAM SRI.DILEEP CHANDRAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 7744 of 2016 (P) ---------------------------

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APPENDIX

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PETITIONER(S)' EXHIBITS ----------------------EXT.P1 . TRUE COPY OF THE NOTICE DATED 11/3/2014 EXT.P2 . TRUE COPY OF THE NOTICE DATED 28/1/2016.

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RESPONDENT(S)' EXHIBITS -----------------------

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NIL. / TRUE COPY /

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P.S. TO JUDGE

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A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No. 7744 of 2016

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- - - - Dated this the 21^st day of March 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.P2 is the notice issued to the petitioner under Section 13(2) of 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.7744 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, is stated to be Rs.79,000/-. Accordingly, if the petitioner remits the aforesaid amount of Rs.79,000/- together with accrued interest in eight equal and successive monthly installments commencing from 04.04.2016 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/

Sreevidya.K v. Kerala Gramin Bank

Case brief

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Sreevidya.K v. Kerala Gramin Bank

Case brief

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