Partly allowed

Vijayakumar.S.N v. Syndicate Bank

Kerala HC17 Dec 2020WP(C)/26201/2020

Case brief

AI extract

What is this about?

The High Court allowed a writ petition filed by borrowers aggrieved by SARFAESI Act recovery proceedings. The Court directed the bank to allow repayment of the outstanding amount in monthly installments instead of immediate recovery, subject to strict compliance, with no further extension granted.

What did the court decide?

Recovery proceedings kept in abeyance if petitioners discharge liability of Rs.5,65,268/- with accrued interest in twelve equal monthly installments commencing from 6.1.2021.

Vijayakumar.S.N Vs Syndicate Bank — Contract and Commercial Disputes | 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 A.K.JAYASANKARAN NAMBIAR

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THURSDAY, THE 17TH DAY OF DECEMBER 2020 / 26TH AGRAHAYANA, 1942

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WP(C).No.26201 OF 2020(A)

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PETITIONER/S:

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1 VIJAYAKUMAR.S.N AGED 59 YEARS S/O. NAGAPPAN, S.N. MANDIRAM, CHAVADINADA, VENGANORR P.O, VENGANOOR, THIRUVANANTHAPURAM, PIN-695 523

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2 SHEEJA K, AGED 41 YEARS W/O. VIJAYAKUMAR S.N, S.N. MANDIRAM, CHAVADINADA, VENGANORR P.O, VENGANOOR, THIRUVANANTHAPURAM, PIN-695 523

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BY ADV. SMT.BOBY M.SEKHAR

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RESPONDENT/S:

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1 SYNDICATE BANK VIZHINJAM BRANCH, BLDG NO. XII/V, A/114, MUKKOLA JUNCTION VENGANOOR, VIZHINJAM, THIRUVANANTHAPURAM, REPRESENTED BY ITS BRANCH MANAGER, PIN-695 523

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2 THE AUTHORISED OFFICER, SYNDICATE BANK, REGIONAL OFFICE, 2ND FLOOR, CARMEL TOWERS, OPP. COTTON HILL SCHOOL, VAZHUTHACAUD, THIRUVANANTHAPURAM-695 014

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R2 BY ADV. SRI.K.P.SUJESH KUMAR R2 BY ADV. SHRI.ANEESH K.R

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.12.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.26201 OF 2020(A)

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JUDGMENT

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The petitioners, who had availed a cash credit facility from the respondent Bank have approached this Court aggrieved by the recovery steps initiated by the respondent Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act ('the SARFAESI Act' for short) for recovery of the amount. Ext.P1 is the 13(2) notice issued to the petitioner by the 2nd respondent. The learned counsel for the respondent Bank would submit that the total amount outstanding under the cash credit facility as on 17.12.2020 is Rs.5,65,268/-

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I have heard the learned counsel for the petitioners as also the learned Standing counsel for the respondent Bank.

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On a consideration of the facts and circumstances of the case and the submissions made across the bar and also taking into account the plea of financial hardship raised by the petitioners, I dispose the writ petition with the following directions:

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(i) if the petitioners discharge the said liability of Rs.5,65,268/- together with accrued interest till the date of payment in twelve equal and successive monthly installments commencing from 6.1.2021 , then further proceedings for recovery shall be kept in abeyance.

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(ii) It is made clear that if the petitioners commit a default in respect of any of the installments, they will lose the benefit of this judgment and the respondent bank will be free to

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WP(C).No.26201 OF 2020(A)

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continue the recovery proceedings against them from the stage at which they presently stand.

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(iii) It is further made clear that inasmuch as it is in exceptional cases that this Court would grant the reliefs aforementioned, no further petition for modification/extension of time will be entertained.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR

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JUDGE

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WP(C).No.26201 OF 2020(A)

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT UNDER SECTION 13(2) OF THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 DATED 09.05.2018.

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EXHIBIT P2 TRUE COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT UNDER SECTION 13(2) OF THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 DATED 09.01.2020.

Vijayakumar.S.N v. Syndicate Bank

Case brief

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Vijayakumar.S.N v. Syndicate Bank

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