Disposed

Sumesh Chandran v. Authorised Officer

Kerala HC30 Mar 2016WP(C)/8659/2016

Case brief

AI extract

What is this about?

The High Court disposed of the writ petition filed by a loan defaulting debtor challenging steps taken by the bank under the SARFAESI Act. The court allowed relinquishment of recovery actions in installments and directed the bank to return vehicle possession upon payment.

What did the court decide?

Recovery proceedings stayed pending installment payment; bank directed to return vehicle possession upon payment of Rs.60,100/-.

Sumesh Chandran Vs Authorised Officer — 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 30TH DAY OF MARCH 2016/10TH CHAITHRA, 1938

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WP(C).No. 8659 of 2016 (F)

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PETITIONER:

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SUMESH CHANDRAN, S/O. CHANDRAN, PARAYKKAL HOUSE, RAMAKKALMEDU. P.O, IDUKKI-685 552.

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BY ADV. SRI.THOMAS J.ANAKKALLUNKAL

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RESPONDENTS:

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1. THE AUTHORISED OFFICER, INDUSIND BANK LTD., (VEHICLES FINANCE DIVISION), RAMA BHAVAN, PARUTHELI PALAM, TOLL JUNCTION, EDAPALLY, KOCHI-682 024.

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2. MANAGER, INDUSIND BANK LTD., KATTAPPANA BRANCH, IDUKKI DISTRICT-685 552.

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BY ADVS. SRI.G.HARIHARAN, SRI.PRAVEEN.H.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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rs.

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WP(C).No. 8659 of 2016 (F)

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APPENDIX

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PETITIONER'S EXHIBITS:-

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P1 TRUE COPY OF THE ORDER DATED 29/01/2016 PASSED BY THE HON'BLE CHIEF JUDICIAL MAGISTRATE, THODUPUZHA IN MC.45/2016.

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P2 TRUE COPY OF THE DEMAND NOTICE DATED 05.02.2016 ISSUED BY THE 1ST RESPONDENT.

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RESPONDENT'S EXHIBITS:- NIL.

//TRUE COPY//

P.S. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.8659 of 2016

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- - - - Dated this the 30^th day of March 2016

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JUDGMENT

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The petitioner, who had availed a vehicle 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 order of the Chief Judicial Magistrate, Thodupuzha. It is stated that the respondent bank had also taken possession of the vehicle which was the secured asset. 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 respondent.

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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.8659 of 2016

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prayer of the petitioner is to permit him to remit the balance amounts outstanding to the bank in easy installments. Taking note of the conduct of the petitioner, I dispose the writ petition with the following directions:-

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(i) The total outstanding amount, in respect of the loan is stated to be Rs.78,600/-, which includes the overdue amount of Rs.60,100/-. Accordingly, If the petitioner pays an amount of Rs.60,100/- to the respondents, on or before 08.04.2016, and the balance amount of Rs.18,500/- on or before 30.05.2016, then the recovery steps initiated against him, 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 payments as referred above, 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 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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(iv) It is made clear that on the petitioner paying the amount of Rs.60,100/- either within the time granted in

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W.P.(c).No.8659 of 2016

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this judgment or earlier, the respondent bank shall handover the possession of the vehicle to the petitioner.

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Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE

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sm/