Disposed

Pushkaran.M. v. the Axis Bank Ltd.

Kerala HC24 Aug 2017WP(C)/5802/2017

Case brief

AI extract

What is this about?

The High Court of Kerala allowed a writ petition challenging SARFAESI Act recovery proceedings initiated by a bank against defaulting borrowers. The Court granted a one-year moratorium on further proceedings if the petitioners pay the overdue amount plus interest in 12 equal monthly installments starting from September 11, 2017.

What did the court decide?

Stay of recovery proceedings conditional on payment of Rs.11,85,723 plus interest in 12 monthly installments starting 11.09.2017.

Pushkaran.M. Vs the Axis Bank Ltd. — 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 24TH DAY OF AUGUST 2017/2ND BHADRA, 1939

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WP(C).No. 5802 of 2017 (A)

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PETITIONER(S):

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1. PUSHKARAN.M., S/O.MANUEL AGED 57 YEARS, KOLLABHAGATHU,

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VARUVILAKATHU VEEDU, VIZHAVOOR,

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VILAVOORICKEL, MALAYAM P.O.,

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THIRUVANANTHAPURAM DISTRICT-695 571.

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2. SIVALEELA K., W/O.PUSHKARAN

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AGED 53 YEARS, KOLLABHAGATHU,

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VARUVILAKATHU VEEDU, VIZHAVOOR,

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VILAVOORICKEL, MALAYAM P.O.,

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THIRUVANANTHAPURAM DISTRICT-695 571.

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BY ADVS.SRI.SEBASTIAN JOSEPH (KURISUMMOOTTIL) SRI.C.MOHANAN(THIRUPURAM)

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RESPONDENT(S):

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1. THE AXIS BANK LTD. NIHAL COMPLEX, KARAMANA MAIN ROAD, KARAMANA, THIRUVANANTHAPURAM-695 002, REPRESENTED BY ITS AUTHORIZED OFFICER.

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2. THE MANAGER, THE AXIS BANK LTD. KILLIPPALAM BRANCH, THIRUVANANTHAPURAM-695002.

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R1 BY ADV. SRI.P.PAULOCHAN ANTONY SC

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 24-08-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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sdr/-

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WP(C).No. 5802 of 2017 (A)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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P1 A TRUE COPY OF THE NOTICE DATED 19.7.2016 ISSUED BY THE BANK TO THE PETITIONER

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P2 A TRUE COPY OF THE INTIMATION DATED 28.1.2017 ISSUED BY ADVOCATE COMMISSIONER INCOMPLIANCE WITH ORDER IN M.C.NO.1066/2016 OF THE CHIEF JUDICIAL MAGISTRATE COURT, THIRUVANANTHAPURAM.

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RESPONDENT(S)' EXHIBITS NIL

/TRUE COPY/

PA TO JUDGE

sdr/-

A.K.JAYASANKARAN NAMBIAR, J. ............................................................. W.P.(C).No.5802 Of 2017 -(A ) ............................................................. Dated this the 24^th day of August, 2017

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J U D G M E N T

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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.P2 is the notice of the Advocate Commissioner. In the writ petition, the petitioners impugn 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 petitioners 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

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-2-

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W.P.(C).No.5802 Of 2017 -(A )

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case and the submissions made across the bar, I note that the sole prayer of the petitioners is to permit them to remit the balance amounts outstanding to the respondent 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 overdue amount, in respect of both the loans availed by the petitioners, as of today, is stated to be Rs.11,85,723/- together with accrued interest. Accordingly, if the petitioners pay the said amount of Rs.11,85,723/- together with accrued interest in 12 equal and successive monthly installments commencing from 11.09.2017, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against them by the respondent bank shall be kept in abeyance.

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(ii) It is further 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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-3-

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W.P.(C).No.5802 Of 2017 -(A )

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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 ten days from today so as to enable the petitioners 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/24.08.17

Pushkaran.M. v. the Axis Bank Ltd.

Case brief

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Pushkaran.M. v. the Axis Bank Ltd.

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