Disposed

Bineesh v. Corporation Bank

Kerala HC11 Jan 2017WP(C)/17336/2016

Case brief

AI extract

What is this about?

The Court held that while recovery proceedings could not be stopped due to defaults in gold loans, the petitioner should be granted a ten-month installment facility to clear dues. Recovery in the housing loan may resume only upon specific defaults in the new plan.

What did the court decide?

Petitioner granted ten installments to satisfy balance dues in gold loans; recovery kept in abeyance if terms met.

Bineesh Vs Corporation Bank — Contract and Commercial Disputes | Kerala HC (2017)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

¶4

WEDNESDAY, THE 11TH DAY OF JANUARY 2017/21ST POUSHA, 19382017

¶5

WP(C).No. 17336 of 2016 (N) ----------------------------

¶6

PETITIONER(S):

¶7

1. BINEESH, S/O. LAKSHMANAN, AGED 39 YEARS, KANDEKKATTUNIKARTHUHOUSE, ERAMALLOOR, EZHUPUNNA P.O., CHERTHALA, ALAPPUZHA-688537, KERALA.

¶8

2. LAKSHMANAN, S/O. KRISHNAN, AGED 71 YEARS, KANDEKKATTUNIKARTHUHOUSE, ERAMALLOOR, EZHUPUNNA P.O., CHERTHALA, ALAPPUZHA-688537, KERALA.

¶9

BY ADVS.SRI.L.P.ARAVINDAKSHAN SRI.SIBI THOMAS JACOB

¶10

RESPONDENT(S):

¶11

1. CORPORATION BANK, HAVING ITS ZONAL OFFICE AT THAPURAM, NO.25/298/4, THIRUVANANTHAPURAM, KERALA-695001, REPRESENTED BY IT'S DEPUTY GENERAL MANAGER.

¶12

2. AUTHORIZED OFFICER, CORPORATION BANK LTD., ZONAL OFFICE, THAPUAM NO. 25/298/4, THIRUVANANTHAPURAM, KERALA-695001.

¶13

3. BRANCH MANAGER, CORPORATION BANK, ERAMALLOOR BRANCH, ERAMALLOOR, CHERTHALA, ALAPPUZHA-688537.

¶14

BY ADV. SRI.V.A.AJAI KUMAR

¶15

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11-01-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶16

¶17

WP(C).No. 17336 of 2016 (N)

¶18

APPENDIX

¶19

PETITIONER(S)' EXHIBITS

¶20

P1 TRUE COPY OF THE ACCOUNT STATEMENT OF THE HOME LOAN OF THE PETITIONERS.

¶21

P2 TRUE COPY OF THE POSSESSION NOTICE.

¶22

RESPONDENT(S)' EXHIBITS

¶23

R3(A) THE STATEMENT OF ACCOUNT PERTAINING O JD ACCOUNT NOJD/01/1300025 FOR THE PERIOD FROM 01.04.2014 TO 31.01.2015

¶24

R3(B) THE STATEMENT OF ACCOUNT PERTAINING TO JD ACCOUNT NO.JD/01/140023 FOR THE PERIOD FROM 01.04.2014 TO 31.04.2015

¶25

R3(C) THE STATEMENT OF ACCOUNT PERTAINING TO JD ACCOUNT NO.JD/01/150022 FOR THE PERIOD FROM 28.04.2015 TO 31.03.2016

¶26

R3(D) TRUE COPY OF THE WRITTEN INSTRUCTION GIVEN BY THE 1ST PETITIONER TO THE 3RD RESPONDENT FOR CREDITING THE AMOUNT OF RS.22,400/- BY CLOSING JD ACCOUNT NO.JD/01/150022

¶27

R3(E) TRUE COPY OF THE DEMAND NOTICE DATED 10.09.2015 ISSSUED BY THE 3RD RESPONDENT TO THE PETITIONERS

¶28

R3(F) TRUE COPY OF THE POSSESSION NOTICE DATED 09.05.2016 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONERS

¶29

R3(G) THE STATEMENT OF ACCOUNT PERTAINING TO THE HOME LOAN ACCOUNT NO,.CHOME/01/080005 OF THE PETITIONERS FOR THE PERIOD FROM 01.01.2008 TO 02.06.2016

¶30

R3(H) THE STATEMENT OF ACCOUNT OF THE SAVING BANK ACCOUNT NO.SB/01/006384 OF THE 1ST PETITIONER FOR THE PERIOD FROM 01.04.2014 TO 31.03.2016

TRUE COPY

P.S. TO JUDGE

K. VINOD CHANDRAN, J

W.P(C) No. 17336 of 2016 N

¶37

¶38

Dated this the 11^th day of January, 2017

¶39

The petitioner is aggrieved with the recovery

¶40

proceedings initiated and the possession threatened as per

¶41

Ext.P2. The petitioner submits that the proceedings have

¶42

been taken in a housing loan in which there are no dues

¶43

pending as of now.

¶44

The learned Standing Counsel for the

¶45

respondent Bank based on the counter affidavit submits

¶46

that there is no arrears pending in the housing loan as of

¶47

now. The housing loan was sanctioned for a total amount

¶48

of Rs.2,35,000/- on 07.02.2008 and the repayment was to be

¶49

made in 247 installments. Earlier, there was a default

¶50

committed by the petitioner and as of now there is no

¶51

WPC.No.17336/2016

¶52

: 2 :

¶53

defaulted arrears and the petitioner is regularly paying the EMI. However the recovery proceedings were initiated only since two gold loans taken by the petitioner in 2012 were in default and amounts are due despite the pledged ornaments having been sold in public auction.

¶54

The petitioners had availed of two gold loans;

¶55

one on 28.06.2012 and another on 16.11.2012, respectively of 1,11,000/- and Rs.3,00,000/-. The gold loans had to be satisfied within a period of one year, which the petitioners did not do and no remittances were made. In such circumstance, the respondent Bank had proceeded against the pledged gold ornaments and proceeds of sales were credited to the said account. Even after that an amount of Rs.32,068/- and Rs.97,248/- is remaining due in the said accounts as on 31.05.2016; is the contention.

¶56

WPC.No.17336/2016

¶57

: 3 :

¶58

In such circumstance, as per the RBI

¶59

guidelines when one of the loans is defaulted by a borrower, all the loans availed by the borrower is declared

¶60

as a non performing asset so as to ensure the regular

¶61

payment in all the loans availed of by a single borrower.

¶62

This Court does not find any reason to interfere with the proceedings. However, considering the impecunious circumstances pleaded and also the fact that

¶63

the pledged gold has been sold, the petitioner shall be granted ten installments to satisfy the balance amounts due in the two gold loans. The respondent Bank shall issue a statement of accounts to the petitioner, in the gold

¶64

loan accounts showing amounts due as on 30.01.2017. The

¶65

first instalment shall be paid on 13.02.2017 and on the 13^th of the successive months. After satisfaction of the 10^th

¶66

WPC.No.17336/2016

¶67

: 4 :

¶68

installment, the Bank shall issue a statement of any future interest, which shall be satisfied as the 11^th installment. In

¶69

the meanwhile the petitioner shall be allowed to remit the regular EMIs in the housing loan also. If the arrears in the gold loan is satisfied and regular EMIs are paid in the housing loan, recovery shall be kept in abeyance. If any two defaults are committed, in the installments granted, the Bank shall be entitled to resume proceedings for recovery even of the dues in the housing loan. The above installment facility shall be applicable only if the petitioner, within one month from today, execute the

¶70

acknowledgment of liability to the respondent Bank.

¶71

Writ petition is disposed of. No costs.

¶72

Sd/-

¶73

jma

¶74

(K. VINOD CHANDRAN, JUDGE) //true copy//

¶75

P.A to Judge

Bineesh v. Corporation Bank

Case brief

What is this about?

What did the court decide?

Bineesh v. Corporation Bank

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Ranjan Vs Anil Kumar

M/S Ardra Associates Vs State of Kerala

Jacob Barry Vs State Bank of Travancore

Baburaj Vs Authorized Officer, Uco Bank

Nazar Vs the State Bank of Travancore

L. Satheek Vs the Commercial Tax Officer (Wc)