Disposed

Shanavas.K.v v. the Manager

Kerala HC5 Feb 2019WP(C)/871/2019

Case brief

AI extract

What is this about?

In an application regarding the regularisation of a defaulted vehicle loan, the High Court directed the Bank to give the petitioner time to pay off the outstanding amount of the vehicle loan by 30 July 2019 and to continue servicing the housing loan EMI without default.

What did the court decide?

Time granted till 30.07.2019 to pay off Vehicle Loan outstanding Rs.12,87,188.86 with charges/interest; obligation to pay Housing Loan EMIs without default.

Shanavas.K.v Vs the Manager — Contract and Commercial Disputes | 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 DEVAN RAMACHANDRAN

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TUESDAY ,THE 05TH DAY OF FEBRUARY 2019 / 16TH MAGHA, 1940

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WP(C).No. 871 of 2019

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PETITIONER/S:

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SHANAVAS.K.V, AGED 36 YEARS S/O MUHAMMED, KODUVALLY HOUSE, THRIKKALLOOR P.O., MANNARKAD, PALAKKAD DISTRICT.

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BY ADV. SRI.K.K.MOHAMED RAVUF

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RESPONDENT/S:

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1 THE MANAGER, FEDERAL BANK LTD., MANNARKAD BRANCH-678 582, PALAKKAD DISTRICT. 2 THE AUTHORIZED OFFICER FEDERAL BANK LTD., MANNARKAD BRANCH-678 582, PALAKKAD DISTRICT.

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BY ADVS. SRI.K.MADHUSOODANAN – SC SRI.MATHEW JACOB (KUNNATHU) SRI.SYRIAC JOSEPH SRI.T.G.PAUL

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.02.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC 871/19

JUDGMENT

The petitioner seeks that a Vehicle Loan,

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availed of by him from the respondent-Bank, be directed to be regularised.

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However, the learned Standing Counsel

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appearing for the Bank submits that the petitioner has also availed of another loan, namely a Housing Loan, but concedes that in the said loan, there are no overdues. He then adds that since the petitioner has committed default

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in the Vehicle Loan, the said Housing Loan also has now been declared as a Non-Performing Asset (NPA). He, however, offers that the Bank can allow the petitioner to regularise the Vehicle Loan, if he pays off the overdues, which is

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about Rs.6,00,000/- as on today, in two or three instalments.

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counsel for the petitioner, in response to this, submits that his client is not in a position to pay any amount at this point of time on account

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of the fact that the car in question has been involved in a horrific accident, leading to its total loss and that his client is awaiting payment from the Insurance Company against the policy that covered the said car. He says that if his client is given time till the end of

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July, 2019, he will either be able to obtain the insurance amount under the said policy or that he will garner other sources to pay off the entire amounts in the Vehicle Loan, saying that he does not want to regularise the said loan and

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that he is giving up his prayer for such purpose. He further offers that his client will continue to pay the regular EMIs in the Housing Loan to ensure that no overdue is caused in the said account in the meanwhile.

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The learned Standing Counsel for the

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Bank though, initially, was reluctant to accept this offer, said that his client is willing to offer a last opportunity to the petitioner, but

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only if he gives up all his legal contentions

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against the measures already taken by the Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities

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Interest Act ('the SARFAESI Act' for brevity). He submits that if the petitioner is agreeable to this, then he can be given time till the end of July, 2019, to pay off the entire balance in the Vehicle Loan account, which he says is Rs.12,87,188.86 as on 05.02.2019; but on the specific condition that the petitioner will continue to pay the regular EMIs in the Housing Loan without default in future.

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Sri. Mohamed Ravuf, the learned counsel

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for the petitioner says that his client agrees to the afore suggestions made by the Bank and prays that this writ petition be disposed of on such terms.

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In the afore circumstances, I order this

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writ petition and permit the petitioner time till 30.07.2019 to pay off the outstanding amount in the Vehicle Loan, stated to be

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WPC 871/19

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5 Rs.12,87,188.86 as on 05.02.2019, along with all

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applicable charges and interest, if any, and further that he will pay the regular EMIs in the Housing Loan without default from this month itself. On the petitioner making payment as afore, the Bank will close the Vehicle Loan account; but will allow the petitioner to

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continue to service the Housing Loan under the terms of the original sanction.

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I make it clear that if, for any reason,

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the petitioner makes default in any of the

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directions afore, the Bank will be at liberty to take action under the SARFAESI Act, from the

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stage at which it is available today, immediately thereafter without any further orders from this Court.

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directions contained herein are peremptory and that it will not be, except for very exceptional circumstances, be varied or modified in future.

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After I completed the dictation of this

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WPC 871/19

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6 judgment, Sri. Mohamed Ravuf, the learned counsel for the petitioner made a request that, in the event the petitioner is able to identify a buyer for the secured asset, so as to liquidate not merely the Vehicle Loan but also the Housing Loan, the Bank may be directed to offer him such an opportunity. I am certain that if the petitioner identifies a suitable buyer for the secured asset, offering the entire amounts under the two loans, there is no reason why the Bank should deny such an opportunity to him and am sure that the Bank will do what is apposite at that relevant time.

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This writ petition is thus disposed of.

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SD/-

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DEVAN RAMACHANDRAN

JUDGE

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APPENDIX

PETITIONER'S/S EXHIBITS:

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EXHIBIT P2 TRUE COPY OF THE COMPLAINT IN C.C.NO.165/2017 FILED BY THE PETITIONER BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, PALAKKAD. EXHIBIT P3 TRUE COPY OF THE COMPUTER GENERATED STATEMENT OF THE CAR LOAN NO.14097400003711. EXHIBIT P4 TRUE COPY OF THE LAWYER NOTICE DATED 13.9.2017 ISSUED BY THE ADVOCATE FOR THE RESPONDENTS. EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 22.6.2018 ISSUED BY THE 2ND RESPONDENT

Shanavas.K.v v. the Manager

Case brief

What is this about?

What did the court decide?

Shanavas.K.v v. the Manager

Case brief

What is this about?

What did the court decide?

What the court decided

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