Allowed

Sudheesh v. Malappuram District Co-Operative Bank Ltd.

Kerala HC17 Aug 2017WP(C)/27137/2017

Case brief

AI extract

What is this about?

Petitioners challenging SARFAESI Act recovery by a bank due to loan default sought waiver to pay dues in installments. The High Court allowed the petition, directing payment in monthly installments to stay immediate enforcement actions.

What did the court decide?

Recovery steps stayed if petitioners pay total overdue amount with interest in ten equal monthly installments starting 31.07.2017; otherwise, recovery proceedings resume.

Sudheesh Vs Malappuram District Co-Operative… — 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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THURSDAY, THE 17TH DAY OF AUGUST 2017/26TH SRAVANA, 1939

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WP(C).No. 27137 of 2017 (N)

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PETITIONER(S):

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1. SUDHEESH,

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AGED 40 YEARS, S/O.DEVAYANI, KOORIKKATTIL HOUSE, KUNNAKKAVU.P.O., MALAPPURAM DISTRICT-679 340

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2. DEVAYANI, AGED 63 YEARS, D/O.CHOZHI, KOORIKKATTIL HOUSE, KUNNAKKAVU.P.O.,

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MALAPPURAM DISTRICT-679 340.

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BY ADV. SRI.C.DINESH

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RESPONDENT :

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MALAPPURAM DISTRICT CO-OPERATIVE BANK LIMITED., MALAPPURAM, REPRESENTED BY ITS DEPUTY GENERAL/MANAGER/AUTHORIZED OFFICER, FIROZKHAN.P.M., AGED 37 YEARS, S/O.MUHAMMED SHERIF, MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, UPHILL, MALAPPURAM.P.O.- 676 505

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BY SRI.I.V.PRAMOD, STANDING COUNSEL

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17-08-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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sts

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WP(C).NO.27137/2017

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APPENDIX

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PETITIONER'S EXHIBITS:

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EXT.P1 COPY OF THE CRL.M.P.NO.1324 OF 2016 DATED 23/5/2016 THE FILE OF THE HON'BLE CHIEF JUDICIAL MAGISTRATE COURT, MANJERI.

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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.27137 of 2017

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======================== Dated this the 17^th day of August 2017

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JUDGMENT

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The petitioners, 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 application filed before the Chief Judicial Magistrate Court, Manjeri. In the writ petition, the petitioners impugn the steps initiated by the respondent bank for recovery of the loan amounts.

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2.I have heard the learned counsel appearing on behalf of the petitioners as also the learned Standing Counsel appearing on behalf of the respondent.

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On a consideration of the facts and circumstances of the case as also the submissions made across the bar, I note that the sole prayer of the petitioners is to permit them to remit the balance amounts

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W.P.(C)No.27137 of 2017

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outstanding to the 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 total overdue amount, in respect of the loan availed by the petitioners, as of today, is stated to be Rs.2,21,966/-. Accordingly, if the petitioners pay the aforesaid amount of Rs.2,21,966/- together with accrued interest, in ten equal and successive monthly installments commencing from 31.07.2017, and continues to keep up the regular installment payments as per the original loan schedule, then the recovery steps initiated against them by the respondent bank shall be kept in abeyance.

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(ii) It is 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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(iii)The respondent bank shall furnish the petitioners with an up-to-date statement, of the dues position together with interest, within 10 days from today so as to enable the petitioners to discharge their 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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// True Copy //

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P.A. to Judge

Sudheesh v. Malappuram District Co-Operative Bank Ltd.

Case brief

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Sudheesh v. Malappuram District Co-Operative Bank Ltd.

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