Disposed

P.J.Tommy v. Manager, State Bank of India

Kerala HC5 Oct 2017WP(C)/25596/2017

Case brief

AI extract

What is this about?

The High Court allowed a writ petition by a borrower facing financial hardship who disputed SARFAESI Act recovery steps. The court permitted payment of outstanding dues in monthly installments to suspend recovery proceedings, warning of immediate resumption upon default, and directed the bank to provide an updated dues statement.

What did the court decide?

Allowed the writ petition. Directed the respondent bank to keep recovery steps in abeyance if the petitioner remits the total outstanding amount in mười-five equal monthly installments starting 16.10.

P.J.Tommy Vs Manager, State Bank of India — 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 5TH DAY OF OCTOBER 2017/13TH ASWINA, 1939

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WP(C).No. 25596 of 2017 (Y)

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PETITIONER(S):

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P.J.TOMMY, AGED 68 YEARS, S/O.LATE P.A.JOSEPH, PUTHANAGADY, ELAMKULAM, CHILAVANNOOR ROAD, KAVAVANTHRA P.O., COCHIN-682020.

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BY ADVS. M.S.UNNIKRISHNAN JITHIN PAUL VARGHESE K.SUNIL C.V.VEENA A.G.NISHA

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RESPONDENT(S):

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1. THE MANAGER, STATE BANK OF INDIA, PERUMANOOR BRANCH, M.G.ROAD, ERNAKULAM, KOCHI-682015.

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2. STATE BANK OF INDIA, REGIONAL BUSINESS OFFICE, STATE BANK OF INDIA BUILDING, MARINE DRIVE, COCHIN-682031. REPRESENTED BY ITS REGIONAL MANAGER.

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3. CHIEF MANAGER (AUTHORISED OFFICER), STATE BANK OF INDIA, REGIONAL BUSINESS OFFICE, REGION 1, ERNAKULAM ADMINISTRATIVE OFFICE, 6TH FLOOR, SHANMUGHAM ROAD, ERNAKULAM, COCHIN-682031.

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R1,2 BY SRI.M.JITHESH MENON

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05-10-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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RVS.

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WP(C).No. 25596 of 2017 (Y)

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APPENDIX

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PETITIONER(S)' EXHIBITS:

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EXHIBIT	P1 TRUE COPY OF TH RS. 2.35 CRORES FR	E DOCU OM MES	MENTS SHOWING AMOUNT DUE WHICH IS UNDER SCRUTINY.
EXHIBIT	P2 TRUE COPY OF THE SARFAESI ACT DATED	NOTICE 30.05.	UNDER SECTION 13(2) OF THE 2017.
EXHIBIT	P3 TRUE COPY OF THE THE 1ST RESPONDENT	STATEME TO THE	NT OF ACCOUNTS PROVIDED BY PETITIONER.
EXHIBIT	P4 TRUE COPY OF THE THE 1ST RESPONDENT	STATEME TO THE	NT OF ACCOUNTS PROVIDED BY PETITIONER.
EXHIBIT	P5 TRUE COPY OF THE R AGAINST THE NOTI SARFAESI ACT DA RESPONDENT.	EPLY LE CE UND TED 0	TTER SENT BY THE PETITIONER ER SECTION 13(2) OF THE 1/07/2015 ISSUED BY THE
EXHIBIT	P6 TRUE COPY OF THE THE 1ST RESPONDENT	LETTER .	DATED 24.07.2017 ISSUED BY
EXHIBIT	P7 TRUE COPY OF THE SECURITIZATION A ASSETS AND ENFOR 2002.	NOTICE ND REC CEMENT	UNDER SECTION 13(4) OF THE ONSTRUCTION OF FINANCIAL OF SECURITY INTERST ACT,
RESPOND	ENT(S)' EXHIBITS:

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NIL.

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/TRUE COPY/ P.A.TO JUDGE

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RVS.

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A.K.JAYASANKARAN NAMBIAR, J.

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=========================================== W.P.(C). No. 25596 of 2017

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===================================================== Dated this the 5^th day of October, 2017

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JUDGMENT

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The petitioner, who had availed a cash credit facility as also a term 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.P2 is the notice issued to the petitioner under Section 13(2) of the SARFAESI Act. It is stated that the possession notice has also been served on the petitioner. 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 on behalf of the petitioner as also the learned Standing Counsel appearing on behalf of the respondents.

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On a consideration of the facts and circumstances of the

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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

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W.P.(C). No. 25596 of 2017

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-2-

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amounts outstanding to the 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 total outstanding amount, under the cash credit facility availed by the petitioner is stated to be Rs.1,85,87,142/-. The total overdue amount in respect of the term loan as on 31.07.2017 is stated to be Rs.8,96,307/-. Accordingly, if the petitioner remits the total amount of Rs.1,94,83,449/- together with accrued interest and other charges in fifteen equal and successive monthly installments commencing from 16.10.2017, and continues to keep up the regular installment payments as per the original loan schedule in the term loan account, then the recovery steps initiated against him by the respondent bank shall be kept in abeyance.

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(ii) It is 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

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-3-

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W.P.(C). No. 25596 of 2017

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together with interest, within 10 days from today, so as to enable the petitioner to discharge his liability in accordance with the directions in this judgment.

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Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE

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das/ 06.10.2017

P.J.Tommy v. Manager, State Bank of India

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P.J.Tommy v. Manager, State Bank of India

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