Allowed

Pradeepan P.P v. the State Bank of Travancore, (Nos State Bank of India)

Kerala HC8 Aug 2017WP(C)/14963/2017

Case brief

AI extract

What is this about?

Petitioner challenged recovery proceedings under the SARFAESI Act for defaulted agricultural loans. The High Court allowed installment payment of dues with accrued interest, keeping recovery steps in abeyance, subject to strict compliance.

What did the court decide?

Recovery steps kept in abeyance if petitioner remits total dues of Rs.2,87,000 plus interest and charges in six equal monthly installments; bank to provide updated dues statement.

Pradeepan P.P Vs the State Bank of Travancore, (Nos… — 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 MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

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TUESDAY, THE 8TH DAY OF AUGUST 2017/17TH SRAVANA, 1939

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WP(C).No. 14963 of 2017 (T)

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PETITIONER(S):

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PRADEEPAN P.P., PUNNAYULLAPRAMBATH HOUSE, BHOOMIVATHUKKAL POST, VALAYAM, KOZHIKODE DISTRICT- 673 517.

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BY ADVS.SRI.R.K.MURALEEDHARAN, SMT. ATHIRA A.MENON.

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RESPONDENT(S):

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1. THE STATE BANK OF TRAVANCORE, (NOW STATE BANK OF INDIA), REPRESENTED BY ITS MANAGER, KALLACHI BRANCH, CALICUT DISTRICT-673 506.

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2. THE AUTHORISED OFFICER/THE CHIEF MANAGER, STATE BANK OF TRAVANCORE (NOW STATE BANK OF INDIA), KALLACHI BRANCH, CALICUT DISTRICT- 673 506.

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3. MRS. LEELA, W/O KUNHIKANARAN, PUNNAYULLAPRAMBATH HOUSE, BHOOMIVATHUKKAL POST, VALAYAM, KOZHIKODE DISTRICT- 673 517.

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R1 & R2 BY SRI.T.SETHUMADHAVAN, SENIOR SC. ADV. SRI.K.JAYESH MOHANKUMAR, SC. R3 BY ADV. SRI.K.B.GANGESH.

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

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rs.

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WP(C).No. 14963 of 2017 (T)

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APPENDIX

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PETITIONER'S EXHIBITS:-

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EXHIBIT P1 A TRUE COPY OF THE SETTLEMENT DEED EXECUTED BY THE 3RD RESPONDENT IN FAVOUR OF THE PETITIONER DATED 24.03.2008.

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EXHIBIT P2 A TRUE COPY OF THE NOTICE DATED 02.03.2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

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EXHIBIT P3 A TRUE COPY OF THE REPLY TO THE OBJECTION DATED 27/03/2017. EXHIBIT P4 A TRUE COPY OF THE PHOTOGRAPHS OF THE LAND.

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RESPONDENT'S EXHIBITS:- NIL.

//TRUE COPY//

P.S. TO JUDGE

rs.

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.14963 of 2017

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- - - - Dated this the 8^th day of August, 2017

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JUDGMENT

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The petitioner, who had availed an agricultural term loan and a Kisan Cash Credit facility 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 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 him to remit the balance

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W.P.(c).No.14963 of 2017

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: 2 :

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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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(i) The total overdue amount, in respect of the Agricultural term loan availed by the petitioner is stated to be Rs.1,70,000/- and the total outstanding amount in respect of the Kisan cash credit facility availed by the petitioner is stated to be Rs.1,17,000/-. Accordingly, if the petitioner remits the total amount of Rs.2,87,000/together with accrued interest and other charges in six 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 in the Agricultural term loan, 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

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W.P.(c).No.14963 of 2017

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: 3 :

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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/- A.K.JAYASANKARAN NAMBIAR JUDGE

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sm/

Pradeepan P.P v. the State Bank of Travancore, (Nos State Bank of India)

Case brief

What is this about?

What did the court decide?

Pradeepan P.P v. the State Bank of Travancore, (Nos State Bank of India)

Case brief

What is this about?

What did the court decide?

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