Partly allowed

Sivasankaran Nair v. the Kerala State Co-Operative Bank (Kerala Bank)

Kerala HC19 Nov 2020WP(C)/16429/2020

Case brief

AI extract

What is this about?

The High Court granted the petitioner, a senior citizen facing default on an agricultural loan used for a dairy farm, a direction to clear overdue amounts in 10 equal monthly instalments. Regularisation was conditioned upon full compliance without default.

What did the court decide?

Petitioner allowed to clear overdue amount in 10 equal monthly instalments; upon subsequent regular instalments without default, account to be regularised. Relief withdrawable on two successive defaul

Sivasankaran Nair Vs the Kerala State Co-Operative Bank… — 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 RAJA VIJAYARAGHAVAN V

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THURSDAY, THE 19TH DAY OF NOVEMBER 2020 / 28TH KARTHIKA, 1942

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WP(C).No.16429 OF 2020(C)

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PETITIONER:

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SIVASANKARAN NAIR, AGED 64 YEARS, S/O. GOVINDAN, THUNDIL VEETTIL, THENGAMOM MURI, PALLIKKAL VILLAGE, ADOOR TALUK, PATHANAMTHITTA DISTRICT, PIN - 690522.

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BY ADVS.

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SRI.V.JAYAPRADEEP SMT.ANN SUSAN GEORGE SMT.O.A.NURIYA SRI.D.S.LOKANATHAN SRI.ALAN PRIYADARSHI DEV

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RESPONDENTS:

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1 THE KERALA STATE CO-OPERATIVE BANK (KERALA BANK) (FORMERLY KNOWN AS THE PATHANAMTHITTA DISTRICT COOPERATIVE BANK, KADAMPANAD BRANCH, KADAMPANAD P.O, PATHANAMTHITTA - 691553,

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2 VILLAGE OFFICER, PALLIKKAL, ADOOR TALUK, PATHANAMTHITTA DISTRICT - 690522.

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R1 BY ADV. SRI.T.P.PRADEEP

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SRI KP HARISH, SR GP

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.11.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.16429 OF 2020

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JUDGMENT

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The petitioner had availed an agricultural loan of Rs.20 lakhs from the 1st respondent for the purpose of establishing a Dairy Farm. He committed default in paying the EMI’s. The petitioner contends that substantial amounts were paid by him on the understanding that the loan would be rescheduled and he would be offered a rebate. However, the respondent went back on their word and has informed him that he is not entitled to any respite or relief. It is in the aforesaid circumstances that the petitioner has approached this Court seeking a direction for rescheduling and regularisation of Ext.P1 loan account and also for other reliefs.

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In the counter affidavit filed by the 1st respondent, it is stated that the total outstanding as on 31.12.2019 was Rs.31,88,414/- on which day he remitted a sum of Rs.20 lakhs. It is further stated that as on 27.10.2020, the total outstanding is Rs.13,46,247/- and the overdue amount is 3,24,041/-. It is stated that the term of loan is scheduled to expire only on 21.8.2024. It is further stated that if the petitioner clears off the overdue amount on or before the end of March 2021, the respondent would consider regularising the account.

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WP(C).No.16429 OF 2020

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Faced with the data presented by the Bank, Sri.V.Jayapradeep, the learned counsel appearing for the petitioner submits the petitioner be permitted to remit the overdue amount along with regular instalments in 12 equal monthly instalments and necessary directions be issued to the Bank to regularise his account.

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I have heard Sri.T.P.Pradeep, the learned Standing Counsel

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appearing for the 1st respondent, who objected to the request made by the learned counsel.

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I have considered the submissions advanced.

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It appears that the petitioner is a senior citizen and he has taken the loan for the purpose of establishing a Dairy Farm. Owing to the pandemic, the petitioner was unable to effect repayment as per the schedule. It also appears that he had paid a consolidated amount of Rs.20 Lakhs on 31.12.2019.

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Having considered the entire aspects and the submissions advanced, I am of the view that an opportunity can be granted to the petitioner herein to clear off the overdue amount in 10 equal monthly instalments, first of which shall be paid on 1.12.2020. The above payment shall be in addition to the regular monthly instalments. If the petitioner complies with the above direction and clears the overdue amount along with regular instalments without any default, the respondent shall consider regularising the loan account for the balance amount. However, if the petitioner commits two successive defaults, the

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WP(C).No.16429 OF 2020

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benefit granted to the petitioner by this order will stand withdrawn and the 1st respondent shall be entitled to surge ahead with the proceedings to recover the

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amount by initiating appropriate proceedings.

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This petition is disposed of.

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Sd/-

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RAJA VIJAYARAGHAVAN V

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JUDGE

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sru

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WP(C).No.16429 OF 2020

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APPENDIX

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PETITIONER'S EXHIBITS:

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EXHIBIT P1 COPY OF THE STATEMENT OF ACCOUNT OF THE LOAN DATED 1.6.2020 EXHIBIT P2 COPY OF THE REPRESENTATION DATED 10.11.2019. EXHIBIT P3 COPY OF THE STATEMENT OF ACCOUNT OF THE LOAN DATED 2.6.2020.

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RESPONDENTS EXHIBITS:NIL

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//TRUE COPY//

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P.A TO JUDGE

Sivasankaran Nair v. the Kerala State Co-Operative Bank (Kerala Bank)

Case brief

What is this about?

What did the court decide?

Sivasankaran Nair v. the Kerala State Co-Operative Bank (Kerala Bank)

Case brief

What is this about?

What did the court decide?

What the court decided

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