Disposed

Balakrishnan.T v. the Kottakkal Co-Operative Urban Bank Limited

Kerala HC4 Nov 2019WP(C)/26556/2019

Case brief

AI extract

What is this about?

The Court directed the petitioner to deposit Rs.1 lakh within 15 days and another Rs.1 lakh within the subsequent 15 days. The petitioner was granted liberty to request instalment arrangements from the respondent bank, and the bank was restrained from taking coercive steps for eight weeks subject to compliance.

What did the court decide?

Liberty to request bank for instalments; direction to deposit Rs.1 lakh within 15 days and another Rs.1 lakh thereafter; restraint on coercive steps for eight weeks.

Balakrishnan.T Vs the Kottakkal Co-Operative Urban Bank… — Banking and Recovery | Kerala HC (2019)

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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 S.V.BHATTI

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MONDAY, THE 04TH DAY OF NOVEMBER 2019 / 13TH KARTHIKA, 1941 WP(C).No.26556 OF 2019(T)

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PETITIONER:

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BALAKRISHNAN.T AGED 56 YEARS S/O.CHANGU.T.(LATE), THOTTIYIL HOUSE, CHENDAPPURAYA, A.R.NAGAR(P.O.), MALAPPURAM DISTRICT, PIN-676 305.

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BY ADV. SRI.C.BHASKARAN

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RESPONDENTS:

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1 THE KOTTAKKAL CO-OPERATIVE URBAN BANK LIMITED NUMBER 1378, HEAD OFFICE KOTTAPPADI, KOTTAKKAL, MALAPPURAM DISTRICT, PIN-676 503.

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2 SHAFEEKH.K., AUTHORIZED OFFICER, THE KOTTAKKAL CO-OPERATIVE URBAN BANK LTD.NUMBER 1378 HEAD OFFICE KOTTAPPADI, KOTTAKKAL, MALAPPURAM DISTRICT, PIN-676 503.

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BY ADV. SRI.DEVAPRASANTH.P.J.

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 04.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.26556 OF 2019(T) 2

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JUDGMENT

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Dated this the 4th day of November 2019

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Heard Adv. Sri. C. Bhaskaran, for the petitioner

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and Sri. Devaprasanth P.J., the learned Standing

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Counsel for the respondent bank.

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The petitioner prays for the following reliefs:-

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"i) Issue a writ of certiorari or any other appropriate writ or order to quash Exts.P5, P6 and P9 notice.

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ii) Issue a writ of mandamus or any other writ or order or direction directing the respondent to regularise the loan after giving sufficient time to the petitioner for repaying the overdue as instalments.

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iii) Grant such other reliefs which this Hon'ble Court may deem fit and necessary in this case."

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The petitioner states that the petitioner in

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spite of adverse market conditions and insufficient cash

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flow; is interested in regularising the loan account while continuing to pay the regular instalments and for the said purpose seeks the indulgence of this Court to grant reasonable time to clear the overdue amount.

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Sri. Devaprasanth P.J., appearing for

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respondent bank submits that the writ petition is filed

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WP(C).No.26556 OF 2019(T) 3

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without making such request before the respondent bank. The petitioner, if proves bona fides in clearing the overdue amount and continuing to pay the regular installments, the respondent bank has no difficulty in considering the request of petitioner. It is argued that the instalments are agreed terms between the parties under the loan agreement and are binding unless otherwise changed on mutually agreed terms. In exceptional circumstances, this Court can grant additional instalments or reschedule the agreed instalments. But the case on hand does not present such exceptional circumstances. The petitioner if proves bona fides, the respondent bank would certainly consider the request of petitioner for granting or rescheduling the instalments.

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The submissions made by the learned counsel are noted. The petitioner, since is not pressing the writ prayers, this Court is not proposing to examine the objection raised by respondent bank, namely substituting instalments in the place of already agreed instalments or change time schedule in exercising its

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WP(C).No.26556 OF 2019(T) 4

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jurisdiction under Article 226 of the Constitution. Keeping in perspective the stand of the counsel appearing for the respondent bank and to meet the ends of justice, I am satisfied that the writ petition can be disposed of by this order:-

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(a) The petitioner is given liberty to request within two weeks from today the respondent bank, by enclosing a copy of this judgment, for granting instalments/time for payment of the overdue amount, while continuing to pay the regular instalments.

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(b) The petitioner is directed to deposit Rs.1,00,000/- (Rupees One Lakh Only) within fifteen days from today and another sum of Rs.1,00,000/(Rupees One Lakh Only) within fifteen days thereafter. (c) Upon the petitioner complying with the said condition, the respondent bank considers the request of petitioner for granting instalments/time as may be warranted in this behalf.

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(d) The instalments so facilitated by the respondent bank, it is needless to observe, shall be independent of regular instalments under the loan

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WP(C).No.26556 OF 2019(T) 5

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agreement.

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(e) A decision on the request is taken and communicated to petitioner within four weeks thereafter.

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(f) The respondent bank is directed not to take

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coercive steps for eight weeks from today subject to petitioner complying with the above direction. The petitioner, if commits default, the respondent bank is free to proceed in accordance with law and take possession.

sd/-

S.V.BHATTI

JUDGE

DCS

WP(C).No.26556 OF 2019(T) 6

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1	A TRUE COPY OF THE LOAN PASSBOOK ISSUED BY THE RESPONDENT IN THE NAME OF THE PETITIONER IS DATED 01.11.2016.
EXHIBIT P2	A TRUE COPY OF THE SETTLEMENT DEED NO.1695/97 DATED 26.06.1997.,
EXHIBIT P3	A TRUE COPY OF THE TAX RECEIPT IS DATED 11.08.2015.
EXHIBIT P4	TRUE COPY OF THE NOTICE ISSUED AND PROCEEDED BY THE BANK IS DATED 01.02.2018.
EXHIBIT P5	A TRUE COPY OF 13(2) NOTICE ISSUED BY BANK IS DATED 22.06.2018.
EXHIBIT P6	THE POSSESSION NOTICE IS DATED 12.12.2018 ISSUED BY THE BANK.
EXHIBIT P7	A TRUE COPY OF THE REPRESENTATION BEFORE THE DISTRICT COLLECTOR, MALAPPURAM IS DATED 29.05.2019.
EXHIBIT P8	A TRUE COPY OF THE LETTER NO.1214/2019 ISSUED BY THE UNIT INSPECTOR IS DATED 21.08.2019.
EXHIBIT P9	A TRUE COPY OF THE NOTICE ISSUED BY THE COMMISSIONER IS DATED 19.09.2019.

Balakrishnan.T v. the Kottakkal Co-Operative Urban Bank Limited

Case brief

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Balakrishnan.T v. the Kottakkal Co-Operative Urban Bank Limited

Case brief

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