Allowed

Murali Menon v. Authorised Officer & Chief Manager

Kerala HC7 Aug 2017WP(C)/11147/2017

Case brief

AI extract

What is this about?

Petitioner, who defaulted on a bank loan and faced recovery proceedings under the SARFAESI Act, filed a writ petition seeking relief based on financial hardship. The court permitted the petitioner to remit the balance amount in 12 equal monthly installments, staying recovery actions pending this arrangement.

What did the court decide?

Petitioner permitted to remit total overdue amount of Rs. 1,76,487 plus interest in 12 monthly installments starting 21.08.2017; recovery proceedings stayed upon compliance.

Murali Menon Vs Authorised Officer & Chief… — Contract and Commercial Disputes | 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 MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

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MONDAY, THE 7TH DAY OF AUGUST 2017/16TH SRAVANA, 1939

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WP(C).No. 11147 of 2017 (P)

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PETITIONER :

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MURALI MENON, S/O.PADMANABHA MENON, ROYAL PARK, FLAT NO. 215, NEAR HOLIDAY INN BYE PASS, VYTILA, COCHIN - 19.

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BY ADVS.SRI.BABU CHERUKARA SRI.ARUN SAMUEL

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RESPONDENTS :

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1. AUTHORISED OFFICER & CHIEF MANAGER, FEDERAL BANK LTD., PACHALAM BRANCH, COCHIN - 682012.

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2. M/S. WARRIER FINANCIAL SERVICES PVT LTD., NAPPADY BUILDINGS (1ST FLOOR), OPPOSITE KWA TANK & PUMP HOUSE, KADAVANTHARA - KALOR ROAD, KATHRUKADAVU, KOCHI - PIN - 682017.

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R1 BY ADV. SRI.JACOB P.ALEX

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07-08-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 11147 of 2017 (P)

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APPENDIX

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PETITIONER'S EXHIBITS :

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P1: COPY OF THE RECEIPTS IN THE FORM OF SEALED COUNTER FOILS FOR REMITTANCE OF THE AMOUNTS DT 24/6/2016 AND 29/62016 ISSUED BY THE R1.

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P2: COPY OF THE LETTER ISSUED BY THE R1 TO THE PETITIONER DT 21/3/2017.

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RESPONDENT'S EXHIBITS : NIL.

//TRUE COPY//

P.A. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.11147 of 2017

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- - - - Dated this the 7^th day of August, 2017

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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 demand notice issued to the petitioner under 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 him to remit the balance amounts outstanding to the bank in easy installments. Taking into account the plea of financial hardship raised by the petitioner, I dispose the writ petition with the following directions:-

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W.P.(c).No.11147 of 2017

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: 2 :

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(i) The total overdue amount, in respect of the loan availed by the petitioner, as on 03.08.2017, is stated to be Rs.1,76,487/-. Accordingly, if the petitioner remits the aforesaid amount of Rs.1,76,487/- together with accrued interest in 12 equal and successive monthly installments commencing from 21.08.2017, and continues to keep up the regular installment payments as per the original loan schedule, 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 furnish the petitioner with an up-to-date statement, of the dues position together with interest, within 10 days from today, so as to enable the petitioner to discharge his liability in accordance with the directions in this judgment.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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sm/

Murali Menon v. Authorised Officer & Chief Manager

Case brief

What is this about?

What did the court decide?

Murali Menon v. Authorised Officer & Chief Manager

Case brief

What is this about?

What did the court decide?

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