Disposed

Preman v. Bank of India

Kerala HC1 Aug 2017WP(C)/25335/2017

Case brief

AI extract

What is this about?

This court disposed of a writ petition challenging SARFAESI Act proceedings for loan recovery by permitting the petitioner to pay the outstanding dues in 12 monthly installments, pending further regular payments, with the proviso that default leads to resumption of enforcement.

What did the court decide?

Overdue amount of Rs.3,65,436/- and accrued interest to be paid in 12 equal monthly installments from 14.08.2017; further proceedings kept in abeyance.

Preman Vs Bank of India — 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. 25335 of 2017 (N)

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PETITIONER(S):

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PREMAN, AGE 40, S/O. SUKUMARAN, CHITRALAYAM, KURUVIYODU, ALATHARA, MALAYINKEEZHU, THIRUVANANTHAPURAM.

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BY ADV. SHAJIN S.HAMEED

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RESPONDENT(S):

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BANK OF INDIA, THIRUVANANTHAPURAM BRANCH, REPRESENTED BY ITS AUTHORIZED OFFICER, ST.MARY'S CHURCH COMPLEX, UNIVERSITY P.O., THIRUVANANTHAPURAM, PIN CODE - 695 034.

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BY SRI.J.HARIKUMAR, SC, BANK OF INDIA

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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. 25335 of 2017 (N)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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EXHIBIT	P1	TRUE COPY BY THE MAGISTRATE ACT.	OF THE RESPOND , THIR	PETITION M.C. NO. 179/2017 FILED ENT BEFORE THE CHIEF JUDICIAL UVANANTHAPURAM U/S 14 OF SARFEASI
EXHIBIT	P2	TRUE COP M.C.NO.179 COURT, THI	Y OF /2017 RUVANAN	THE ORDER DATED 27.03.2017 IN OF THE CHIEF JUDICIAL MAGISTRATE THAPURAM.
EXHIBIT	P3	TRUE COPY THE ADVOCA	OF THE TE COMM	NOTICE DATED 17.07.2017 ISSUED BY ISSIONER.
RESPONDE --------	NT(S) -----	' EXHIBITS ----------	:

NIL.

/TRUE COPY/

P.A. TO JUDGE

rvs.

A.K.JAYASANKARAN NAMBIAR, J.

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............................................................. W.P.(C).No.25335 Of 2017 -(N ) ............................................................. 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.P3 is the notice of the Advocate Commissioner. 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, I note that the sole

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W.P.(C).No.25335 Of 2017 -(N )

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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 is stated to be Rs.3,65,436/- together with accrued interest. Accordingly, if the petitioner pays the said amount of Rs.3,65,436/- together with accrued interest in 12 equal and successive monthly installments commencing from 14.08.2017, 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 petitioner with an up-to-date statement, of the dues position together with interest, within ten days from

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W.P.(C).No.25335 Of 2017 -(N )

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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/01.08.17