Disposed

Rajib., v. the Manager

Kerala HC11 Feb 2020WP(C)/1604/2020

Case brief

AI extract

What is this about?

A writ petition challenging SARFAESI proceedings was disposed of. The court accepted the petitioners' willingness to regularize the defaulted loan account subject to conditions allowing immediate payment of dues and stipulated instalments, with a caveat that further proceedings can be initiated upon default.

What did the court decide?

Disposal of the writ petition on conditions allowing regularisation of the loan account pending full payment of dues.

Rajib., Vs the Manager — Banking and Recovery | Kerala HC (2020)

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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 AMIT RAWAL

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TUESDAY, THE 11TH DAY OF FEBRUARY 2020 / 22ND MAGHA, 1941

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WP(C).No.1604 OF 2020(A)

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PETITIONERS:

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1 RAJIB., AGED 38 YEARS KODUVINAL THARAYIL, EDAKULANGARA P.O. KARUNAGAPPALLY 690 518.

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2 JASMIN W/O. RAJIB, KODUVINAL THARAYIL, EDAKULANGARA P.O. KARUNAGAPPLY 690 518.

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BY ADVS. SRI.JOSHI N.THOMAS KUM.ALEENA JOLLY

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RESPONDENTS:

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1 THE MANAGER QUILON DISTRICT COOPERATIVE BANK (NOW KERALA STATE COOPERATIVE BANK, KARUNAGAPPALLY EVENING BRANCH, KARUNAGAPPALLY 690 518.

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2 DEPUTY GENERAL MANAGER, QUILON DISTRICT COOPERATIVE BANK, (NOW KERALA STATE COOPERATIVE BANK) KARUNAGAPPALLY 690 518.

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3 AUTHORISED OFFICER, KERALA STATE COOPERATIVE BANK, (FORMERLY QUILON DISTRICT COOPERATIVE BANK ) QUILON. 673 307.

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BY ADVS.

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SRI.P.C.SASIDHARAN, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P(C) No.1604 of 2020

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JUDGMENT

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The petitioners in this writ petition have impugned the proceedings initiated by the respondent Co-operative Bank under the SARFAESI Act. A sum of Rs.6 lakhs with interest payable, in 10 years was taken as loan on 05-09-2014. The petitioners could not pay the instalments and the bank has therefore declared the account as Non Performing Asset resulting into initiation of the proceedings under the SARFAESI Act.

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The learned counsel for the petitioners further submits that they are willing to pay the outstanding amount for the purpose of the regularisation of the loan account.

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The learned counsel for the respondents submits that as on 22-01-2020 a sum of Rs.10,76,703/-(Rupees Ten Lakh Seventy Six Thousand Seven Hundred and Three only) is due and a sum of Rs.7,89,921/- (Rupees Seven Lakh Eighty Nine Thousand Nine Hundred and Twenty One only) is overdue. The bank is willing to regularise the loan account in case the petitioners pay a sum of Rs.5 Lakhs on or before 20-03-2020 and pay the balance overdue amount

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W.P(C) No.1604 of 2020

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in five monthly instalments, commencing from 20-04-2020 till 20-08-2020.

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The learned counsel for the petitioners submits that his clients are agreeable to the aforementioned conditions and undertake to deposit Rs.5 lakhs on or before 20-03-2020 with a further undertaking to pay the balance overdue amount in monthly instalments commencing from 20-04-2020 and thereafter, the account may be regularised and as per the terms and conditions of regularisation of account will pay the outstanding instalments on time.

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The writ petition is disposed of with the aforementioned conditions. In case there is a perpetual default of two instalments in the aforesaid arrangement, the account will not be regularised and the bank shall be at liberty to take appropriate steps for recovery of the outstanding amount in accordance with law.

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Sd/- AMIT RAWAL, JUDGE

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KAS

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W.P(C) No.1604 of 2020

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF PAS BOOK OF 1ST PETITIONER SANCTIONING CONSUMPTION LOAN TO THE 1ST PETITIONER BY 1ST RESPONDENT BANK. EXHIBIT P2 TRUE COPY OF NOTICE REC/V/2016/5698 DATED 24.11.2016 ISSUED BY THE 3RD RESPONDENT TO THE 2ND PETITIONER. EXHIBIT P3 TRUE COPY OF NOTICE DATED 18.01.2019 ISSUED TO THE 1ST PETITIONER BY THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF NOTICE NO. REC/1/2018-19 DATED 02.01.2020 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P5 TRUE COPY OF JUDGMENT DATED 22.06.2018 IN WPC 18132/18 OF THIS HONBLE COURT.

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RESPONDENT'S/S EXHIBITS: NIL

Rajib., v. the Manager

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Rajib., v. the Manager

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