Partly allowed

K.Thankamma v. the Ernakulam District Co-Operative Bank

Kerala HC23 Mar 2016WP(C)/9431/2016

Case brief

AI extract

What is this about?

In a writ petition, the petitioner challenging recovery steps under the SARFAESI Act due to a housing loan default, the Court remand to permit installment repayment of the outstanding dues to keep recovery proceedings in abeyance.

What did the court decide?

Recovery proceedings kept in abeyance if petitioner pays outstanding amount of Rs.5,78,125- with accrued interest in ten equal monthly installments; bank to furnish updated dues statement within 10 da

K.Thankamma Vs the Ernakulam District Co-Operative 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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WEDNESDAY, THE 23RD DAY OF MARCH 2016/ 3RD CHAITHRA, 1938

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WP(C).No. 9431 of 2016 (D)

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PETITIONER:

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K.THANKAMMA,

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28/3547,VALLUVASSERIL HOUSE,CHILAVANNOOR ROAD,

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KADAVANTHRA.P.O,KOCHI-682020.

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BY ADV. SRI.P.S.BIJU

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RESPONDENTS:

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1. THE ERNAKULAM DISTRICT CO-OPERATIVE BANK, REPRESENTED BY THE MANAGER,KALOOR EVENING BRANCH,KALOOR,KOCHI-682018.

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2. THE AUTHORIZED OFFICER, (EXECUTIVE OFFICER),ERNAKULAM DISTRICT CO-OPERATIVE BANK LTD,HEAD OFFICE,KAKKAND,KOCHI-682030.

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BY SMT.I.SHEELA DEVI, SC, ERNAKULAM DIST.CO-OPERATIVE BANK LTD

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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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WP(C).No. 9431 of 2016 (D)

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APPENDIX

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PETITIONER'S EXHIBITS

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P1 TRUE COPY OF THE SANCTION ORDER NO.037/48254LN725/278 DATED 11.4.2012 OF THE 1ST RESPONDENT

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P2 TRUE COPY OF THE SURGICAL DISCHARGE SUMMARY ISSUED BY THE COCHIN HOSPITAL DATED 06.02.2014

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P3 TRUE COPY OF THE SECURITY ENFORCEMENT NOTICE ISSUED BY THE 2ND RESPONDENT

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P4 TRUE COPY OF THE REPRESENTATION DATED 20.02.2016 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

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RESPONDENTS' EXHIBITS : NIL

//TRUE COPY//

P.A.TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.9431 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 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.P3 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.9431 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 today, is stated to be Rs.5,78,125/-. Accordingly, if the petitioner remits the aforesaid amount of Rs.5,78,125/together with accrued interest in ten 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/

K.Thankamma v. the Ernakulam District Co-Operative Bank

Case brief

What is this about?

What did the court decide?

K.Thankamma v. the Ernakulam District Co-Operative Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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