Allowed

Verghese M.O v. Authorised Officer

Kerala HC9 Jan 2017WP(C)/373/2017

Case brief

AI extract

What is this about?

The Kerala High Court disposed of a writ petition filed by a housing loan borrower admitted to defaulting on its loan. Considering the petitioner's impecunious circumstances, the court ordered the bank to grant ten monthly instalments for the payment of arrears, keeping recovery proceedings in abeyance pending full payment without default.

What did the court decide?

Respondent to grant ten monthly instalments for payment of arrears; recovery proceedings kept in abeyance upon payment without default; revival of recovery upon two defaults.

Verghese M.O Vs Authorised Officer — 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 K.VINOD CHANDRAN

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MONDAY, THE 9TH DAY OF JANUARY 2017/19TH POUSHA, 1938

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WP(C).No. 373 of 2017 (V)

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PETITIONER:

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VERGHESE M.O, AGED 51 YEARS, S/O.OUSEPH, MONDEY HOUSE, KORATTY SOUTH PO, CHIRANGARA, TRISSUR-680308.

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BY ADV. SRI.B.S.SURESH KUMAR

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RESPONDENT(S):

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1. AUTHORISED OFFICER, SUNDARAM BNP PARIBAS HOME FINANCE LIMITED, SUNDARAM TOWERS, 46, WHITE ROAD, CHENNAI-600 014, HAVING ITS REGISTERED OFFICE AT 21, PATTULLOS ROAD, CHENNAI-600 002.

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2. BRANCH MANAGER, SUNDARAM BNP PARIBAS HOME FINANCE LIMITED, D.NO.11/3597, 2ND FLOOR, ELIZABETH ALEXANDER MEMORIAL BUILDING, MARINE DRIVE (OPP.RAINBOW BRIDGE), ERNAKULAM, KOCHI -682 031.

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3. NATIONAL HOUSING BANK, CORE-5A, INDIA HABITAT CENTRE, LODHI ROAD, NEW DELHI-110 003, REP.BY ITS GENERAL MANAGER.

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R1,R2 BY ADV. SRI.VARGHESE C.KURIAKOSE

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09-01-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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K.V.

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WP(C).No. 373 of 2017 (V)

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APPENDIX

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PETITIONER(S)' EXHIBITS ----------------------P1 TRUE COPY OF NOTICE AS PER SECTION 13(2) OF THE SARFAESI ACT. P2 TRUE COPY OF THE RECEIPT ISSUED BY THE RESPONDENT. P3 TRUE COPY OF THE SAID CIRCULAR DATED 21.11.2016. P4 TRUE COPY OF THE POSSESSION NOTICE DATED 21.12.2016. P5 TRUE COPY OF THE BANKERS CHEQUE DATED 23.12.2016 BEARING NO.57 ISSUED TO THE 2ND RESPONDENT. P6 TRUE COPY OF THE REQUEST DATED 23.12.2016 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT.

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RESPONDENT(S)' EXHIBITS NIL -----------------------

/TRUE COPY/

P.A.TO JUDGE

K.V.

K. VINOD CHANDRAN, J.

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W.P.(C) No. 373 of 2017 (V)

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Dated: 9^th January, 2017

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J U D G M E N T

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The petitioner availed a housing loan from the respondent Bank. On default being committed the respondent initiated Securitisation and Reconstructions

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of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI' for short) proceedings against the property of the petitioner. The liability and the default is admitted. Considering the facts of the case and the alleged impecunious circumstances of the petitioner, this writ petition is disposed of on the following terms.

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(i) The petitioner shall produce a certified copy of this judgment before the respondent within two weeks of receipt of the same.

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W.P.(C) No. 373/2017

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-2-

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(ii) The total defaulted arrears is said to be

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Rs.5,61,702/- as on 31.01.2017. Any credit made shall be adjusted.

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(iii) The respondent shall grant ten monthly instalments for the payment of the arrears, starting from 09.02.2017, which shall be paid along with the regular EMIs, on the due dates.

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(iv) Recovery proceedings shall be kept in abeyance on condition that the remittances as per this order are made without any default.

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(v) On the petitioner making two defaults in repaying either the installments or the regular EMIs, the recovery steps initiated shall revive and continue.

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(vi) On the 10^th instalment being satisfied, the respondent shall issue a statement of the expenses incurred and interest accrued from 31.01.2017 which shall be satisfied by the petitioner on the 09^th of the

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W.P.(C) No. 373/2017

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-3-

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next succeeding month.

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(vii) On the petitioner satisfying the entire

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arrears, the recovery proceedings shall be unenforceable and the petitioner permitted to pay the EMI as per the original agreement.

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Writ Petition is disposed of as above, making it clear that the respondent will be free to proceed with the recovery if the above conditions are not complied with.

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Sd/K.VINOD CHANDRAN, JUDGE

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jjj 9/1/17

Verghese M.O v. Authorised Officer

Case brief

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Verghese M.O v. Authorised Officer

Case brief

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