Disposed

Illias K.P v. State of Kerala

Kerala HC24 Oct 2018WP(C)/26605/2018

Case brief

AI extract

What is this about?

The High Court disposed of a writ petition challenging sale notices for a mortgaged property. An interim order to defer sale was extended. The Court directed petitioners to pay overdue dues plus future interest in five equal monthly instalments starting 12.11.2018. Recovery proceedings were stayed pending compliance.

What did the court decide?

Petitioners directed to pay Rs. 8,98,000 plus future interest in 5 monthly instalments from 12.11.2018; recovery proceedings stayed pending payment; failure to pay allows bank to proceed with sale.

Illias K.P Vs State of Kerala — Contract and Commercial Disputes | 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 ANIL K.NARENDRAN

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WEDNESDAY,THE 24TH DAY OF OCTOBER 2018 / 2ND KARTHIKA, 1940

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WP(C).No. 26605 of 2018

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PETITIONERS:

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1 ILLIAS K.P.,S/O LATE. AHAMMED HAJI, KALLIPARAMBIL HOUSE, KUNNAPPALLI PO, PATHAKKARA VILLAGE, KUNNAPPALLI DESOM, PERINTTHALMANNA TALUK, MALAPPURAM DIST.

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2 MUHAMMED NAZIEER, S/O ILLIAS K.P, KALLIPARAMBIL HOUSE, KUNNAPPALLI PO, PATHAKKARA VILLAGE, KUNNAPPALLI DESOM, PERINTTHALMANNA TALUK, MALAPPURAM DIST.

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BY ADV. SRI.MUHAMMAD SALAHUDHEEN

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RESPONDENTS:

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1 STATE OF KERALA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, SECRETERIATE, THIRUVANANTHAPURAM-695001.

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2 THE PERINTTHALMANNA CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD. NO.505, PERINTTHALMANNA, MALAPPURAM DISTRICT, PIN-679322, REPRESENTED BY ITS SECRETARY.

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3 THE SALE OFFICER, PERINTTHALMANNA CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD. NO.505, PERINTTHALMANNA, MALAPPURAM DISTRICT, PIN-679322. BY ADVS. SMT.J.SURYA SMT.P.VIJAYAMMA SRI.V.KRISHNA MENON SRI.K.P.HARISH, SENIOR GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.10.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WPC 26605 OF 2018 2

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JUDGMENT

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The 1^st petitioner is the father and the 2^nd petitioner

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is the son, who availed a loan for a total sum of Rs.30 lakhs from the 2^nd respondent Co-operative Bank, vide Loan Account No.PELS.035/16-17, after mortgaging the property of the 1^st petitioner, having an extent of 1 acre and 17 cents in Re.Sy.No. 240, have filed this writ petition under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Exts.P3 and P4 sale notices dated 02.07.2018 issued by the 3^rd respondent Sale Officer and seeking a writ of mandamus commanding the 3^rd respondent not to proceed with Exts.P3 and P4 and also an order commanding the respondents to regularise the loan account.

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On 06.08.2018 when this writ petition came up for

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consideration, the learned Government Pleader took notice for the 1^st respondent and urgent notice was ordered to

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respondents 2 and 3 and this Court granted an interim order, which reads thus:-

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“Exts.P3 and P4 sale notices are dated 2.7.2018, whereby the sale is scheduled to be held on 7.8.2018. The petitioners have chosen to file this writ petition only two days prior to the date of sale.

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There will be an interim order to the effect that if the petitioners remitting an amount of Rs.75,000/-(Rupees seventy five thousand only) with the 1^st respondent Bank within a week

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WPC 26605 OF 2018 3

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from this date, the confirmation of sale scheduled to be conducted on 7.8.2018 pursuant to Exts.P3 and P4 sale notices, shall be deferred for a period of three weeks.”

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court has extended the interim order for a period of one month, in case the petitioners have already complied with the condition stipulated in that order.

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On 13.09.2018, when this writ petition came for

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consideration, this Court has recorded the submissions made by the learned counsel for the 2^nd respondent Bank that, the total liability in respect of the loan transaction comes to Rs.34,84,000/- and the total overdue amount comes to Rs.8,98,000/-.

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submissions made by the learned counsel for the 2^nd respondent that, if the petitioners are prepared to pay off the entire overdues amounting to Rs.8,98,000/- in 6 equal monthly instalments, along with regular monthly instalments,

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the Bank is prepared to regularise the loan account. The

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learned counsel for the petitioners sought time to get instructions and accordingly, the matter was adjourned.

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Heard the learned counsel for the petitioners, the

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learned Senior Government Pleader appearing for the 1^st respondent and also the learned counsel for the 2^nd

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WPC 26605 OF 2018 4

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respondent Bank. Despite service of notice, none appears for the 3^rd respondent Sale Officer.

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The learned counsel for the 2^nd respondent Bank

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would submit that, if the petitioners are prepared to pay off the entire overdues before 31^st March, 2019, along with

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the regular monthly instalments, the Bank is prepared to regularise the loan account.

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The learned counsel for the petitioners would submit that, the petitioners shall pay off the entire overdues by 31.03.2019 by remitting the same in 5 equal monthly instalments, along with the regular monthly

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instalments.

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Having considered the submissions made by the

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learned counsel on both sides, this writ petition is

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disposed of with the following directions:-

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i) The petitioners shall pay off the entire overdues amounting to Rs.8,98,000/- in respect of

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the loan transaction covered by Exts.P3 and P4 sale notices, together with future interest from

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13.09.2018 in five equal monthly instalments commencing from 12.11.2018 and the subsequent

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instalments payable on or before the 12^th day of the

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WPC 26605 OF 2018 5

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succeeding months. Along with the said instalments, the petitioners shall also pay the regular monthly instalments.

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ii) If the petitioners are remitting the aforesaid instalments in time, all recovery proceedings pursuant to Exts.P3 and P4 sale notices shall be kept in abeyance so as to enable the petitioners to pay off the entire dues as above.

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iii) In case of any default committed by the petitioners in remitting any one of the the aforesaid instalments, it would be open to the 3^rd respondent to proceed further with the coercive steps.

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Sd/-

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ANIL K. NARENDRAN JUDGE

WPC 26605 OF 2018

APPENDIX

PETITIONERS' EXHIBITS:

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EXHIBIT P1	A TRUE COPY OF THE 3RD RESPONDENT SALE PETITIONER DATED 25	NOTICE ISSUED BY THE OFFICER TO THE 1ST .05.18.
EXHIBIT P2	A TRUE COPY OF THE 3RD RESPONDENT SALE PETITIONER DATED 25	NOTICE ISSUED BY THE OFFICER TO THE 2ND .05.18.
EXHIBIT P3	A TRUE COPY OF THE THE 3RD RESPONDENT OO2/18-19 IN LOAN A THE 1ST PETITIONER	SALE NOTICE ISSUED BY SALE OFFICER IN E.P CCOUNT PELS 035 TO DATED 2.7.18.
EXHIBIT P4	A TRUE COPY OF THE THE 3RD RESPONDENT OO2/18-19 IN LOAN A THE 2ND PETITIONER	SALE NOTICE ISSUED BY SALE OFFICER IN E.P CCOUNT PELS 035 TO DATED 2.7.18.

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RESPONDENTS' EXHIBITS: NIL

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TRUE COPY

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P.A. TO JUDGE

Illias K.P v. State of Kerala

Case brief

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What did the court decide?

Illias K.P v. State of Kerala

Case brief

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