Allowed

Mohammed Gaffar K v. the Manager, Hdfc Bank Ltd.

Kerala HC6 Jul 2017WA/1409/2017

Case brief

AI extract

What is this about?

This intra-court appeal challenges a single judge's dismissal of a writ petition regarding SARFAESI proceedings under a loan dispute. The two-judge bench allowed the appeal, granting the appellants a final one-month opportunity to clear their outstanding dues of approximately thirty lakhs to regularize the loan account.

What did the court decide?

Appellants allowed one more chance; directed to deposit ~Rs.30 lakhs outstanding by 05.08.2017. Upon deposit, Bank to regularize loan and stop recovery proceedings.

Mohammed Gaffar K Vs the Manager, Hdfc Bank Ltd. — Banking and Recovery | Kerala HC (2017)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE THE CHIEF JUSTICE MR.NAVANITI PRASAD SINGH &

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THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V

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THURSDAY, THE 6TH DAY OF JULY 2017/15TH ASHADHA, 1939

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WA.No. 1409 of 2017 IN WP(C).21522/2017

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AGAINST THE JUDGMENT IN WP(C) 21522/2017 DATED 29-06-2017

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APPELLANTS/PETITIONERS :

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MOHAMMED GAFFAR K.,

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AGED 63 YEARS, S/O MOIDEENKUTTY, KUNNAPPULLY HOUSE, PAZHAYA LAKKIDI,

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AKALOOR P.O., OTTAPPALAM, PALAKKAD DISTRICT (NOW RESIDING AT NO.001 AND 002), SAIKRUPA REGENCY, BHUVANESWARI NAGAR, KAGADASAPURA MAIN ROAD, BANGALORE-560 093.

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SHAREEFA GAFFAR, W/O MOHAMMED GAFFAR,

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KUNNAPPULLY HOUSE, PAZHAYA LAKKIDI, AKALOOR P.O., OTTAPPALAM, PALAKKAD DISTRICT (NOW RESIDING AT NO.001 AND 002), SAIKRUPA REGENCY, BHUVANESWARI NAGAR, KAGADASAPURA MAIN ROAD, BANGALORE-560 093.

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RUXANA GAFFAR, D/O MOHAMMED GAFFAR,

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KUNNAPPULLY HOUSE, PAZHAYA LAKKIDI,

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AKALOOR P.O., OTTAPPALAM, PALAKKAD DISTRICT (NOW RESIDING AT NO.001 AND 002), SAIKRUPA REGENCY, BHUVANESWARI NAGAR, KAGADASAPURA MAIN ROAD, BANGALORE-560 093.

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BY ADV. SRI.C.K.RAMAKRISHNAN

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RESPONDENT/RESPONDENT :

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THE MANAGER, HDFC BANK LTD S.L. PLAZA, PALARIVATTOM, KOCHI-682 025 KERALA

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BY SRI.T.RAJESH, SC, HDFC BANK LTD.

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THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 06-07-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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Navaniti Prasad Singh, C.J. & Raja Vijayaraghavan V., J.

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W.A. No. 1409 of 2017

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- - - - Dated this the 6^th day of July, 2017

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JUDGMENTxxxx

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Navaniti Prasad Singh, C.J.

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The present intra court appeal arises from judgment dated 29.06.2017 in W.P.(C) No. 21522 of 2017.

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The writ petitioners are the appellants. They availed a

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loan from the respondent bank. When they defaulted, proceedings under the SARFAESI Act were initiated. They approached this Court for relief and the learned single Judge held that the directions in the writ petition filed earlier having not complied with, further indulgence could not be granted. Holding so, the writ petition was dismissed.

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We have heard learned counsel for the appellants and the 1^st respondent Bank and with their consent we are disposing of this appeal at this stage itself.

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Learned counsel for the appellants fairly concedes that the Bank is not interested in the property of the appellant. It is only interested in securing and recovering the loan advanced to the appellants.

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WA No.1409 of 2017

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-:2:-

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The learned counsel submits that the 1^st appellant is a

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retired Air Force officer and he had borrowed money from the Bank to start a 'Pilot Training Institute'. Initially, the business worked well, but then due to some technical problem, it ran into rough weather. Initially he paid the monthly installments in due time. Then there were defaults. He is not a habitual or intentional defaulter. As per the orders which are found on record it appears that the appellants were in default to the extent of Rs.19,88,000/- as on 12.01.2017. Learned counsel for the Bank submits that, by now, the total defaulted amount has mounted to Rs.30 lakhs. The stand of the Bank is that even now if the appellants are able to clear the entire defaulted arrears, the loan can be regularised. Learned counsel for the appellants, on instructions, submits that they would require one month's time to clear the entire defaulted amount of about Rs.30 lakhs. They would thereafter, from the next month, pay the monthly installment regularly, if the loan is then regularised.

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Having considered the matter and heard the appellants,

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we are inclined to give one more chance to the appellants. The

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WA No.1409 of 2017

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-:3:-

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appellants shall deposit on or before 05.08.2017 the total outstanding defaulted amount till then which would be around Rs.30 lakhs. If the aforesaid amount is remitted, the Bank shall regularise the loan account and shall not pursue with the proceedings to recover the amount. The appellants undertake that thereafter from the month of September, 2017, they would regularly deposit the monthly liability without any default. The said undertaking is recorded. Let it be noted that in case of any default, the Bank would be free to immediately proceed to take

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such steps as it may advised in law. We expect the parties to abide by the above undertaking.

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This writ appeal is accordingly disposed of.

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Sd/-

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Navaniti Prasad Singh, Chief Justice

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Sd/- Raja Vijayaraghavan V., Judge

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ttb/06/07

Mohammed Gaffar K v. the Manager, Hdfc Bank Ltd.

Case brief

What is this about?

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Mohammed Gaffar K v. the Manager, Hdfc Bank Ltd.

Case brief

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