Allowed

Babu Thomas v. Authorized Officer (Under Sarfaesi Act)

Kerala HC5 Jun 2018WP(C)/10836/2018

Case brief

AI extract

What is this about?

The High Court allowed a writ petition challenging SARFAESI Act proceedings. The court directed petitioners to pay outstanding dues and interest in ten equal monthly instalments. Upon compliance, coercive action against them is deferred, but proceedings resume on default.

What did the court decide?

Coercive action deferred upon payment of outstanding dues and interest in ten equal monthly instalments; proceedings may continue on default of any instalment.

Babu Thomas Vs Authorized Officer (Under Sarfaesi Act) — Banking and Recovery | Kerala HC (2018)

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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 P.B.SURESH KUMAR

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TUESDAY, THE 5TH DAY OF JUNE 2018 / 15TH JYAISHTA, 1940

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WP(C).No. 10836 of 2018

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PETITIONER(S)

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1 BABU THOMAS

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S/O THOMAS, AGED 58 YEARS, SRAMBICKAL HOUSE,

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CHELACHUVADU P.O., KANJIKUZHY, IDUKKI

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DISTRICT-685 602.

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2 THOMAS MATHAI

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S/O MATHAI, AGED 88 YEARS, SRAMBICKAL HOUSE,

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CHELACHUVADU P.O., KANJIKUZHY, IDUKKI

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DISTRICT-685 602.

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3 JANCY BABU

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W/O BABU THOMAS, AGED 50 YEARS, SRAMBICKAL HOUSE,

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CHELACHUVADU P.O., KANJIKUZHY, IDUKKI DISTRICT

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685 602.

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4 JOMIA BIBIN

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W/O BIBIN, SRAMBICKAL HOUSE, CHELACHUVADU P.O.,

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KANJIKUZHY, IDUKKI DISTRICT-685 602.

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BY ADV.SRI.RAJU SEBASTIAN VADAKKEKKARA

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RESPONDENT(S):

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1. AUTHORIZED OFFICER (UNDER SARFAESI ACT) THE IDUKKI DISTRICT CO-OPERATIVE BANK LTD.,

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HEAD OFFICE, IDUKKI, IDUKKI COLONY P.O.-685 602.

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2. CHIEF RECOVERY OFFICER

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IDUKKI DISTRICT CO-OPERATIVE BANK LTD., IDUKKI

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COLONY P.O., IDUKKI-685 602.

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3. THE BRANCH MANAGER IDUKKI DISTRICT CO-OPERATIVE BANK, KANJIKUZHY

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BRANCH NO.4334, KANJIKUZHY P.O., IDUKKI-685 602.

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R BY SRI.P.C.SASIDHARAN, SC, IDUKKI DISTRICT CO.OPERATIVE BANK

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05-06-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 10836 of 2018 (D)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXHIBIT P1:	TRUE COPY OF THE BY THE PETITIONER	NOTICE DATED 21.8.2017 RECEIVED S 1 TO 3.
EXHIBIT P2:	TRUE COPY OF THE BY THE 4TH PETITI	NOTICE DATED 31.8.2017 RECEIVED ONER.
EXHIBIT P3:	TRUE COPY OF THE SUBMITTED BY IST IDCB.	REPLY/REQUEST DATED 10.11.2017 PETITIONER TO THE MANAGER,
EXHIBIT P4:	TRUE COPY OF THE SECTION 13(4) OF PETITIONER.	NOTICE DATED 9.20.2017 UNDER THE SARFAESI ACT ISSUED TO THE IST
EXHIBIT P5:	TRUE COPY OF THE SECTION 13(4) OF 2ND PETITIONER.	NOTICE DATED 9.20.2017 UNDER THE SARFAESI ACT ISSUED TO THE
EXHIBIT P6:	TRUE COPY OF THE SECTION 13(4) OF 3RD PETITIONER.	NOTICE DATED 9.20.2017 UNDER THE SARFAESI ACT ISSUED TO THE
EXHIBTI P7:	TRUE COPY OF THE SECTION 13(4) OF 4TH PETITIONER.	NOTICE DATED 9.2.2017 UNDER THE SARFAESI ACT ISSUED TO THE
EXHIBIT P8:	TRUE COPY OF THE 15.1.2018.	RECEIPT FOR RS.1 LAKH DATED
RESPONDENT'S	EXHIBITS :	NIL

//TRUE COPY//

SD/-

P.A. TO JUDGE

SKS

P.B.SURESH KUMAR, J.

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==================

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W.P.(C.) No.10836 of 2018

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Dated this the 5^th day of June, 2018

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JUDGMENT

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Petitioners were enjoying a cash credit facility from Idukki District Co-operative Bank Limited (the bank). In addition, they have also availed two term loans from the bank. It is stated that the accounts of the said credit facility and loans have been classified by the bank as non-performing assets and proceedings have been initiated by the bank against the petitioners for realization of the outstanding in the accounts under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the Act). The petitioners are aggrieved by the said proceedings.

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Heard the learned counsel for the petitioners as also the learned counsel for the bank.

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When the matter was taken up, the learned counsel for the petitioners pointed out that non-payment of the dues by

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W.P.(C.) No.10836/2018

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the petitioners was due to reasons beyond their control and not wilful, and that if a reasonable time is granted, the petitioners is prepared to liquidate the outstanding in the account of the cash credit facility and the overdue in the loan accounts.

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The learned counsel for the bank, on instructions, submits that the outstanding in the account of the cash credit facility is Rs.13,98,400/- and the overdue in the accounts of the term loans comes to Rs.2,43,200/-.

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Having regard to the facts and circumstances of the case as also the orders passed by this Court in similar matters, the writ petition is disposed of as follows :

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(i) The petitioners shall pay the outstanding in the account of the cash credit facility with the interest due in ten equal monthly instalments, of which the first instalment shall be paid within one month from today.

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(ii) The petitioners shall pay the overdue in the accounts of the term loans also with the interest due, in ten equal monthly instalments, of which the first instalment shall be paid within one month from today. The petitioners shall also pay, in addition, the regular instalments of the term loans on the due dates.

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(iii) If the petitioners remit the outstanding in the accounts of the cash credit facility and the overdue in the accounts of the term loans as directed above, coercive action against the

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W.P.(C.) No.10836/2018

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petitioners shall be deferred. It is, however, made clear that if the petitioners commit default in remitting any one of the instalments as directed, proceedings initiated against the petitioners under

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the Act can be continued.

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sd/-

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P.B. SURESH KUMAR, JUDGE

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SKS

Babu Thomas v. Authorized Officer (Under Sarfaesi Act)

Case brief

What is this about?

What did the court decide?

Babu Thomas v. Authorized Officer (Under Sarfaesi Act)

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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