Partly allowed

Mathai v. the Ernakulam District Co-Operative Bank Ltd.

Kerala HC24 Aug 2017WP(C)/24605/2017

Case brief

AI extract

What is this about?

A writ petition filed by a defaulting loan applicant challenging recovery proceedings under the SARFAESI Act. The court allowed the petition and directed the petitioner to repay the outstanding amount plus interest in 15 equal monthly installments starting from September 11, 2017, provided further recovery proceedings remain stayed.

What did the court decide?

Petitioner directed to pay outstanding dues with interest in 15 monthly installments starting 11.09.2017; further recovery proceedings stayed pending compliance.

Mathai Vs the Ernakulam District Co-Operative Bank Ltd. — 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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THURSDAY, THE 24TH DAY OF AUGUST 2017/2ND BHADRA, 1939

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WP(C).No. 24605 of 2017 (A)

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PETITIONER:

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MATHAI, S/O.THOMAS

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AREECKAL HOUSE, MUPPATHADOM P.O,

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PIN 683 110, ELLOOKARA, KADUNGALLOOR VILLAGE,

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PARAVUR TALUK, ERNAKULAM DISTRICT.

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BY ADV. SMT.JAYASREE MANOJ

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RESPONDENT(S):

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1. THE ERNAKULAM DISTRICT CO-OPERATIVE BANK LTD.NO.4325 HEAD OFFICE, KAKKANAD P.O, KOCHI 682 030, REP BY AUTHORIZED OFFICER/EXECUTIVE OFFICER.

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2. THE AUTHORIZED OFFICER/EXECUTIVE OFFICER THE ERNAKULAM DISTRICT CO-OPERATIVE BANK LTD.NO.4325 HEAD OFFICE, KAKKANAD P.O, KOCHI 682 030.

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3. GENERAL MANAGER THE ERNAKULAM DISTRICT CO-OPERATIVE BANK LTD.NO.4325 ALUVA MAIN BRANCH, ALUVA, PIN-683 101.

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BY SRI.N.RAGHURAJ, SC,

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 24-08-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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sdr/-

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WP(C).No. 24605 of 2017 (A)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXHIBIT P1 A TRUE COPY OF THE NOTICE DATED 18.8.2016 ISSUED BY THE FIRST RESPONDENT BANK TO THE PETITIONER.

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EXHIBIT P2 A TRUE COPY OF THE NOTICE DATED 9.9.2016 ISSUED BY THE FIRST RESPONDENT TO THE PETITIONER.

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EXHIBIT P3 A TRUE COPY OF THE JUDGMENT DATED 29.11.2014 OF THE HON'BLE ADDITIONAL SUB COURT NORTH PARAVUR.

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EXHIBIT P4 A TRUE COPY OF THE INTERIM ORDER DATED 2.6.2016 IN RFA NO.245 OF 2016

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EXHIBIT P5 A TRUE COPY OF THE NOTICE DATED 10.8.2016 ISSUED BY THE PETITIONER TO THE FIRST RESPONDENT BANK.

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RESPONDENT(S)' EXHIBITS NIL

/TRUE COPY/

PA TO JUDGE

sdr/-

A.K.JAYASANKARAN NAMBIAR, J. ............................................................. W.P.(C).No.24605 Of 2017 -(A) ............................................................. Dated this the 24^th 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.P5 is the notice issued 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 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

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W.P.(C).No.24605 Of 2017 -(A)

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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 respondent 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 overdue amount, in respect of the loan availed by the petitioner, as on 27.07.2017, is stated to be Rs.12,66,000/- together with accrued interest. Accordingly, if the petitioner pays the said amount of Rs.12,66,000/- together with accrued interest in 15 equal and successive monthly installments commencing from 11.09.2017, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against him 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, 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

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W.P.(C).No.24605 Of 2017 -(A)

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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 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/24.08.17

Mathai v. the Ernakulam District Co-Operative Bank Ltd.

Case brief

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Mathai v. the Ernakulam District Co-Operative Bank Ltd.

Case brief

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