Partly allowed

K.Vijayan v. the Authorized Officer, Allahabad Bank

Kerala HC16 Aug 2017WP(C)/16974/2017

Case brief

AI extract

What is this about?

Petitioner defaulted on bank loans, prompting recovery proceedings under SARFAESI Act. Court allowed installation of monthly payments for outstanding dues with accrued interest, directing suspension of recovery steps pending compliance. Default leads to resumption of proceedings.

What did the court decide?

Recovery steps stayed; petitioner permitted to remit total overdue amount with interest in 10 equal monthly installments starting 30.08.2017. Default leads to revival of proceedings.

K.Vijayan Vs the Authorized Officer… — 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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WEDNESDAY, THE 16TH DAY OF AUGUST 2017/25TH SRAVANA, 1939

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WP(C).No. 16974 of 2017 (V)

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PETITIONER:

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K.VIJAYAN, 319, SAROVARAM, 1, MULLUVILA P.O., THIRUPPURAM, THIRUVANANTHAPURAM.

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BY ADV. SRI.N.MAHESH

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RESPONDENT(S):

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1. THE AUTHORIZED OFFICER, ALLAHABAD BANK POWER HOME ROAD, THIRUVANANTHAPURAM.

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2. THE BRANCH MANAGER, ALLAHABAD BANK, POWER HOME ROAD, TRIVANDRUM BRANCH, THIRUVANANTHAPURAM.

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BY ADV. SMT.E.V.MOLY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16-08-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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K.V.

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WP(C).No. 16974 of 2017 (V)

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APPENDIX

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PETITIONER(S)' --------------	EXHIBITS ---------
EXHIBIT P1	TRUE COPY OF THE STATEMENT OF AFOREMENTIONED ACCOUNT, DATED 11.11.2015.
EXHIBIT P2	TRUE COPY OF THE STATEMENT OF AFOREMENTIONED ACCOUNT, DATED 11.11.2015.
EXHIBIT P3	TRUE COPY OF THE STATEMENT OF AFOREMENTIONED ACCOUNT, DATED 11.11.2015.
EXHIBIT P4	TRUE COPY OF THE STATEMENT OF AFOREMENTIONED ACCOUNT, DATED 11.11.2015.
EXHIBIT P5	TRUE COPY OF THE COMMUNICATION DATED 20.06.2016 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER.
EXHIBIT P6	TRUE COPY OF THE DEPOSIT SLIP OF AMOUNT, RS.70,000/- DATED 21.07.2016.
EXHIBIT P7	TRUE COPY OF THE DEPOSIT SLIP OF ANOTHER AMOUNT RS.60,000/- DATED 10.08.2016.
EXHIBIT P8	TRUE COPY OF THE NOTICE DATED 01.03.2017 ISSUED BY THE 1ST RESPONDENT.
RESPONDENT(S)' --------------	EXHIBITS NIL ---------

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K.V. P.S.TO JUDGE

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A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No.16974 of 2017

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- - - - Dated this the 16^th day of August, 2017

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JUDGMENT

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The petitioner, who had availed two loans 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.P8 is the notice issued to the petitioner by the respondent bank. 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.16974 of 2017

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: 2 :

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(i) The total overdue amount, in respect of both the loans availed by the petitioner is stated to be Rs.13,11,349/(Rs.12,45,349/- + Rs.66,000/-). Accordingly, if the petitioner remits the aforesaid amount of Rs.13,11,349/together with accrued interest and other charges in 10 equal and successive monthly installments commencing from 30.08.2017, and continues to keep up the regular installment payments as per the original loan schedule in both the loan accounts, 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/

K.Vijayan v. the Authorized Officer, Allahabad Bank

Case brief

What is this about?

What did the court decide?

K.Vijayan v. the Authorized Officer, Allahabad Bank

Case brief

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