Partly allowed

Thirumeni V.P. v. the Federal Bank Limited

Kerala HC20 Oct 2017WP(C)/3490/2017

Case brief

AI extract

What is this about?

This court disposed of a writ petition challenging recovery steps under the SARFAESI Act. The court directed the bank to stay recovery proceedings if the petitioner pays the overdue amount in 12 monthly installments, while resuming proceedings upon default.

What did the court decide?

Recovery proceedings stayed contingent upon payment of Rs.4,91,316/- with interest and charges in 12 monthly installments by 31.10.2017; bank to provide updated dues statement within 10 days.

Thirumeni V.P. Vs the Federal Bank Limited — 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 20TH DAY OF OCTOBER 2017/28TH ASWINA, 1939

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WP(C).No. 3490 of 2017 (I)

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PETITIONER:

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THIRUMENI V.P., S/O.PURUSHOTHAMAN.V.V., POZHINJAYIL HOUSE, VARANAM.P.O., ALAPPUZHA DISTRICT, PIN - 688 555.

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BY ADV. SRI.K.C.SUDHEER

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RESPONDENT:

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THE FEDERAL BANK LIMITED, PUTHENANGADI BRANCH, REPRESENTED BY ITS AUTHORIZED OFFICER - THE CHIEF MANAGER, CONVENT SQUARE BRANCH, ALAPPUZHA.

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BY SRI.A.ANTONY, SC ADV.SMT.LEELAMMA ANTONY

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 20-10-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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mbr/

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WP(C).No. 3490 of 2017 (I)

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APPENDIX

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PETITION	ERS'	EXHIBITS:
EXHIBIT	P1:	TRUE COPY OF THE NEWLY ISSUED PASSBOOK IN LOAN ACCOUNT NO.13226900009271.
EXHIBIT	P2:	TRUE COPY OF RECEIPT DATED 1.11.2016 SHOWING THE REMITTANCE OF RS.25,000/-.
EXHIBIT	P3 :	TRUE COPY OF THE DEMAND NOTICE DATED 25.1.2017 IN C.M.P.NO.142/2017 IN M.C.NO.10/17 ISSUED BY THE ADVOCATE COMMISSIONER APPOINTED BY THE CHIEF JUDICIAL MAGISTRATE COURT, ALAPPUZHA.
RESPONDE	NTS'	EXHIBITS : NIL.
		//TRUE COPY//
mbr/		P.S. TO JUDGE

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A.K.JAYASANKARAN NAMBIAR, J.

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W.P.(C) No. 3490 of 2017

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................................................................. Dated this the 20^th day of October, 2017

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JUDGMENT

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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 issued by the Advocate Commissioner to 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 and 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

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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 bank in easy installments. Taking into account the plea of financial hardship raised by the petitioner, I

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-2-

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W.P.(C). No. 3490 of 2017

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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 petitioner, as on 01.10.2017, is stated to be Rs.4,91,316/-. Accordingly, if the petitioner remits the aforesaid amount of Rs.4,91,316/- together with accrued interest and other charges in 12 equal and successive monthly installments commencing from 31.10.2017, and continues to keep up the regular installment payments as per the original loan schedule, 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. (iii) The respondent bank shall furnish the petitioner with an up-to-date statement, of the dues position 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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A.K.JAYASANKARAN NAMBIAR JUDGE

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nkr/20.10.2017

Thirumeni V.P. v. the Federal Bank Limited

Case brief

What is this about?

What did the court decide?

Thirumeni V.P. v. the Federal Bank Limited

Case brief

What is this about?

What did the court decide?

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