Partly allowed

Sreelatha R v. Axis Banklltd.

Kerala HC1 Aug 2017WP(C)/22396/2017

Case brief

AI extract

What is this about?

The High Court of Kerala considered a writ petition challenging recovery proceedings under the SARFAESI Act initiated by Axis Bank for loan default. The court granted a stay on further actions contingent upon the petitioner paying the overdue amount and interest in monthly installments.

What did the court decide?

Stay on further recovery proceedings; petitioner to pay Rs. 4,98,368/- plus interest in 12 monthly installments starting 14.8.2017.

Sreelatha R Vs Axis Banklltd. — 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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TUESDAY, THE 1ST DAY OF AUGUST 2017/10TH SRAVANA, 1939

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WP(C).No. 22396 of 2017 (Y)

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PETITIONER(S):

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SREELATHA R., AGED 49 YEARS, W/O KRISHNANKUTTY, 3/304, VINITH BHAVAN, PONNAMBI, VELLARADA P.O., THIRUVANANTHAPURAM-695505.

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BY ADV. V.SUNIL KUMAR (PANACHAMOODU)

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RESPONDENT(S):

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AXIS BANK LTD., ASC, NIHAL COMPLEX, 2ND FLOOR, KARAMANA, THIRUVANANTHAPURAM-695002, REPRESENTED BY ITS AUTHORISED OFFICER.

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BY ADV. P.PAULOCHAN ANTONY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01-08-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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rvs.

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WP(C).No. 22396 of 2017 (Y)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE NOTICE DATED 07.03.2017 SENT BY THE RESPONDENT BANK TO THE PETITIONER UNDER SECTION 13(4) OF SARFAESI ACT, 2002.

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RESPONDENT(S)' EXHIBITS :

NIL.

/TRUE COPY/

P.A. TO JUDGE

rvs.

A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C).NO.22396 OF 2017 (Y)

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Dated this the 1^st day of August, 2017

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J U D G M E N T

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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.P1 is the possession notice issued to the petitioner under Section 13(4) of 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 for the petitioner as also the learned Standing counsel appearing for the respondent bank.

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On a consideration of the facts and circumstances of the case and the submissions made across the bar and also 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.22396/2017

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(i) The overdue amount, in respect of the loan availed by the petitioner, as of today, is stated to be Rs.4,98,368/-. Accordingly, if the petitioner pays the said amount of Rs.4,98,368/- together with accrued interest in twelve equal and successive monthly installments commencing from 14.8.2017, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against her by the respondent bank shall be kept in abeyance.

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(ii) It is further made clear that if the petitioner commits a default in respect of any of the installments, she will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against her 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 ten days from today so as to enable the petitioner to discharge her liability in accordance with the directions in this judgment.

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A.K.JAYASANKARAN NAMBIAR JUDGE

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prp/1/8/17

Sreelatha R v. Axis Banklltd.

Case brief

What is this about?

What did the court decide?

Sreelatha R v. Axis Banklltd.

Case brief

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