Disposed

Sunil Kumar v. the Authorised Officer, Thrissur District Co-Operative Bank Ltd.

Kerala HC18 Aug 2017WP(C)/23677/2017

Case brief

AI extract

What is this about?

Petitioners defaulted on bank loans and faced recovery proceedings under the SARFAESI Act. Financial hardship was raised. The court permitted repayment in monthly installments, staying recovery proceedings conditioned on timely payments.

What did the court decide?

Petitioners permitted to pay outstanding loan of Rs.8,74,686 plus interest in 12 monthly installments commencing 31.08.2017; recovery proceedings kept in abeyance pending compliance; bank directed to

Sunil Kumar Vs the Authorised 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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FRIDAY, THE 18TH DAY OF AUGUST 2017/27TH SRAVANA, 1939

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WP(C).No. 23677 of 2017 (H)

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PETITIONER(S):

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1. SUNIL KUMAR, S/O.RAMADEVAN, AGED 42, POLAKULATH HOUSE, PULLUT P.O., DESAM AND VILLAGE, KODUNGALLUR TALUK, THRISSUR DISTRICT.

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2. SREEPRIYA,

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W/O.SUNIL KUMAR, AGED 36, POLAKULATH HOUSE, PULLUT P.O., DESAM AND VILLAGE, KODUNGALLUR TALUK, THRISSUR DISTRICT.

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BY ADVS.DR.V.N.SANKARJEE

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SRI.V.N.MADHUSUDANAN SMT.R.UDAYA JYOTHI SRI.M.M.VINOD SMT.M.SUSEELA SRI.S.SIDHARDHAN

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RESPONDENT(S):

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1. THE AUTHORISED OFFICER, THRISSUR DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, CO-OPERATIVE SATHABDHI MANDIRAM, TUDA ROAD, KOVILAKATHUMPADAM, THIRUVAMBADY P.O., THRISSUR-680 122.

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2. THE THRISSUR DISTRICT CO-OPERATIVE BANK LTD., KODUNGALLUR, TDCB BUILDING, EAST NADA, NEAR MUNICIPAL OFFICE, KODUNGALLUR P.O., THRISSUR DISTRICT-680 664, REPRESENTED BY ITS MANAGER.

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R1 & R2 BY ADV. SRI.P.C.SASIDHARAN, SC,

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18-08-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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sts

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WP(C).No. 23677 of 2017 (H)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXHIBIT P1 TRUE COPY OF THE PASS BOOK IN RESPECT OF THE LOAN ACCOUNT OF THE 1ST PETITIONER WITH THE RESPONDENT BANK.

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EXHIBIT P2 TRUE COPY OF T HE PASS BOOK IN RESPECT OF THE LOAN ACCOUNT OF THE 2ND PETITIONER WITH THE RESPONDENT BANK.

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EXHIBIT P3 TRUE COPY OF THE NOTICE DATED 3.11.2016 ISSUED BY THE 1ST RESPONDENT TO THE 1ST PETITIONER.

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EXHIBIT P4 TRUE COPY OF THE NOTICE DATED 3.11.2016 ISSUED BY THE 1ST RESPONDENT TO THE 2ND PETITIONER.

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EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 3.7.2017 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONERS.

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RESPONDENT(S)' EXHIBITS:

NIL

/TRUE COPY/

P.A.TO JUDGE

sts

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.23677 Of 2017 -(H)

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............................................................. Dated this the 18^th day of August, 2017

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J U D G M E N T

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The petitioners, 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. Exts.P3, P4 and P5 are the demand notices. In the writ petition, the petitioners impugn 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 petitioners 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

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W.P.(C).No.23677 Of 2017 -(H)

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case and the submissions made across the bar, I note that the sole prayer of the petitioners is to permit them to remit the balance amounts outstanding to the respondent bank in easy installments. Taking into account the plea of financial hardship raised by the petitioners, I dispose the writ petition with the following directions:-

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(i) The overdue amount, in respect of both the loans availed by the petitioners is stated to be Rs.8,74,686/- together with accrued interest and other charges. Accordingly, if the petitioners pay the said amount of Rs.8,74,686/- together with accrued interest and other charges in 12 equal and successive monthly installments commencing from 31.08.2017, and continue to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against them by the respondent bank shall be kept in abeyance.

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(ii) It is further made clear that if the petitioners commit a default in respect of any of the installments, they will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against them from the stage at which they presently stand.

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W.P.(C).No.23677 Of 2017 -(H)

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(iii) The respondent bank shall furnish the petitioners with an up-to-date statement, of the dues position together with interest, within ten days from today so as to enable the petitioners to discharge the 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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mns/18.08.17

Sunil Kumar v. the Authorised Officer, Thrissur District Co-Operative Bank Ltd.

Case brief

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Sunil Kumar v. the Authorised Officer, Thrissur District Co-Operative Bank Ltd.

Case brief

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