Allowed

Subair M.M v. Authorised Officer

Kerala HC23 Mar 2016WP(C)/9293/2016

Case brief

AI extract

What is this about?

The High Court disposed of a writ petition challenging SARFAESI Act recovery proceedings. Considering the petitioner's financial hardship, the court permitted remittance of the outstanding loan in twelve monthly installments to stay the recovery steps, warning of default consequences.

What did the court decide?

Permission to remit outstanding loan and interest in twelve monthly installments to keep recovery proceedings in abeyance.

Subair M.M Vs Authorised Officer — 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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WEDNESDAY, THE 23RD DAY OF MARCH 2016/ 3RD CHAITHRA, 1938

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WP(C).No. 9293 of 2016 (J)

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PETITIONER(S):

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SUBAIR M.M, AGED 46 YEARS, S/O.ALAVI HAJI, MUNEER MANZHIL, OLAVATTOOR P.O., KONDOTTY, MALAPPURAM, MALAPPURAM DISTRICT. (REPRESENTED BY POWER OF ATTORNEY HOLDER) ABDUL BASHEER, S/O.ALAVI, PALLITHODI HOUSE, IPOOTINGAL, MAMPAD P.O., MALAPPURAM DISTRICT.

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BY ADVS. SRI.RAJIT SMT.V.VIJITHA

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RESPONDENT(S):

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1. AUTHORISED OFFICER, HOUSING DEVELOPMENT FINANCE CORPORATION LTD. (HDFC), MALAPPURAM BRANCH, MALAPPURAM 676 505.

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2. HOUSING DEVELOPMENT FINANCE CORPORATION LTD.(HDFC), MALAPPURAM BRANCH, MALAPPURAM 676 505, REPRESENTED BY ITS MANAGER.

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3. HOUSING DEVELOPMENT FINANCE CORPORATION LTD (HDFC), POST BOX NO. 1667, RAVIPURAM JUNCTION, M.G.ROAD, KOCHI - 682 015, REPRESENTED BY ITS GENERAL MANAGER.

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BY ADV. SMT.S.AMBILY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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Msd.

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WP(C).No. 9293 of 2016 (J)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1: TRUE COPY OF THE LAWYERS NOTICE DATED 30.08.2014. P2: TRUE COPY OF THE REPLY NOTICE DATED 09.09.2014. P3: TRUE COPY OF THE STATEMENT OF ACCOUNT FOR THE PERIOD 01.04.2014 TO 24.09.2014. P4: TRUE COPY OF THE STATEMENT OF ACCOUNT OF THE LOAN ACCOUNT FOR THE PERIOD 01.04.2010 TO 22.06.2015. P5: TRUE COPY OF THE LAWYER NOTICE DATED 09.07.2015. P6: TRUE COPY OF THE LAWYER NOTICE DATED 30.10.2015. P7: TRUE COPY OF THE NOTICE DATED 11.12.2015 U/S 13(2). P8: TRUE COPY OF THE REPLY LETTER DATED 19.01.2016. P9: TRUE COPY OF THE REPLY LETTER DATED 04.02.2016.

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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. 9293 of 2016

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===================================================== Dated this the 23^rd day of March, 2016

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JUDGMENT

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The petitioner, who had availed of a housing 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.P7 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

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case and the submissions made across the bar, I note that the sole prayer of the petitioner is to permit him to remit the balance amounts outstanding to the bank in easy installments. Taking into

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W.P.(C). No. 9293 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 outstanding amount, in respect of the loan, is stated to be Rs.12,85,277/- as on today. Accordingly, if the petitioner remits the aforesaid amount of Rs.12,85,277/- together with accrued interest in twelve equal and successive monthly installments commencing from 04.04.2016, 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 installments, 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, within ten days from today, provide the petitioner with an upto-date statement of accounts so as to enable the petitioner to discharge the liability in accordance with the directions of this judgment.

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Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE

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das /23.03.2016

Subair M.M v. Authorised Officer

Case brief

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Subair M.M v. Authorised Officer

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