In a writ petition challenging recovery proceedings, the Kerala High Court disposed of the petition by directing the petitioner to repay the loan outstanding to the bank in eight equated monthly instalments.
Petitioner directed to pay outstanding of Rs.54,74,925/-in eight equated monthly instalments. Bank permitted to resume recovery in lump sum on default.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
WEDNESDAY, THE 10TH DAY OF JULY 2019 / 19TH ASHADHA, 1941
WP(C).No.8036 of 2019
PETITIONER/S:
RAJAN.E.K AGED 59 YEARS S/O LATE E.K.KRISHNANKUTTY, KOLAZHY P.O., THRISSUR DISTRICT 680 010
BY ADV. SRI.MAHESH V.MENON
RESPONDENT/S:
1 THE BRANCH MANAGER DENA BANK THRISSUR BRANCH, SAKTHAN NAGAR, THRISSUR-680005
2 DEPUTY TAHASILDAR, THALUK OFFICE, THRISSUR, THRISSUR DISTRICT 680020
BY ADV. SRI.ROJO J.THURUTHIPARA
SMT.PRINCY XAVIER, GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10.07.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.8036 of 2019 2
JUDGMENT
Petitioner has availed an MSME loan of
Rs.20,00,000/- from the 1st respondent bank. According to the petitioner, the said loan amount
was enhanced and renewed time and again. However due to certain unforeseen circumstances, petitioner could not make the payments in accordance with the terms and conditions of the agreement executed by and between the parties. Thereupon action is initiated against the petitioner resorting to the provisions of the Kerala Revenue Recovery Act, 1968 (herein after referred to as KRR Act) evident from Exts. P1 and P1(a) notices issued under Sections 7 and 34 of the KRR Act. It is thus challenging the coercive action, this writ petition is filed.
enumerating the details and the circumstances under which the cash credit facilities was offered to the petitioner and justifying the stand adopted by the bank, since the petitioner has failed to pay the
WP(C).No.8036 of 2019 3
amount.
taking into account the submission made by learned counsel for the petitioner that the amounts will be
paid in twelve instalments. I am of the opinion,
the writ petition can be disposed of with appropriate directions. However, the twelve instalments sought for is stoutly opposed by learned counsel appearing for the 1st respondent.
the petitioner, learned Government Pleader as well
as the learned Standing Counsel for the 1st respondent, this writ petition is disposed of, directing the petitioner to pay the outstanding amount of Rs.54,74,925/- (Rupees Fifty four lakh
seventy four thousand nine hundred and twenty five only) in eight equated monthly instalments starting from 30.07.2019 and on the corresponding date of
the succeeding months. Needless to say, if the
petitioner is defaulting any of the installments, the bank will at liberty to resurrect the
WP(C).No.8036 of 2019 4
proceedings and recover the amount in lump. I also make it clear that if the petitioner is making the payment directly to the bank, the collection charges shall be confined to 1% of the total amount deposited.
The writ petition is disposed of, accordingly.
Sd/-
SHAJI P.CHALY
JUDGE
Hmh
WP(C).No.8036 of 2019 5
APPENDIX
PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF REVENUE RECOVERY NOTICE ISSUED BY THE 2ND RESPONDENT DATED 4.2.2019 EXHIBIT P1 A TRUE COPY OF REVENUE RECOVERY NOTICE ISSUED BY THE 2ND RESPONDENT DATED 5.2.2019
RESPONDENT'S/S EXHIBITS: NIL
2 issues framed by the court
Whether a writ petition filed by a loan default challenging coercive recovery action under the Kerala Revenue Recovery Act should be allowed.
Whether repayment of a loan outstanding can be directed in equated monthly instalments pending repayment.)
1 provisions across 1 enactments
Rajan.E.K
The Branch Manager Dena Bank Thissur Branch
Deputy Tahasildar, Thalluk Office, Thissur
Shaji P.Chaly
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
