Disposed

Jayaprakash K., v. the Calicut Cooperative Urban Bank Ltd.

Kerala HC17 Jan 2020WP(C)/467/2020

Case brief

AI extract

What is this about?

A single day writ petition where the Court directed the Bank to provide a statement of account and grant the petitioner 12 months to clear loan overdues via monthly instalments, keeping coercive steps in abeyance. Default results in automatic vacation of the order.

What did the court decide?

Bank directed to provide account details; petitioner given 12 months to clear overdues in eight equal monthly instalments; coercive proceedings stayed subject to compliance.

Jayaprakash K., Vs the Calicut Cooperative… — 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 ALEXANDER THOMAS

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FRIDAY, THE 17TH DAY OF JANUARY 2020 / 27TH POUSHA, 1941

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WP(C).No.467 OF 2020(G)

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PETITIONER:

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JAYAPRAKASH K., AGED 50 YEARS S/O. UNNIKRISHNAN NAIR, KOZHIKKAL HOUSE, NADUVATTOM, ARAKKINAR P.O., KOZHIKODE, PIN-673 028 BY ADV. SRI.S.K.SAJU

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RESPONDENT:

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THE CALICUT COOPERATIVE URBAN BANK LTD., HEAD OFFICE, P.B.NO.503, KALLAI ROAD, KOZHIKODE-673 002, REP. BY ITS MANAGER/AUTHORISED OFFICER R1 BY ADV. SRI.DEVAPRASANTH.P.J.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.467 OF 2020(G)

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ALEXANDER THOMAS, J.

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===========================

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W.P(C) No.467 of 2020

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===========================

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Dated this the 17^th day of January, 2020

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JUDGMENT

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The prayers in the above Writ Petition (Civil) are as follows:

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“1. Issue a writ of mandamus or any other appropriate writ, order or direction, directing the respondent to regularise the petitioner's Loan Account No.108230050000024 by granting the petitioner 12 months time for repayment of the defaulted monthly instalments or on such terms and conditions that this Hon'ble Court deem fit and proper to impose.

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To issue a writ of mandamus or any other appropriate writ, order or direction, directing the respondent to withdraw proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 recording the undertaking of the petitioner to make repayments in a phased manner without default.

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To mould the remedy and grant such appropriate reliefs as the ends of justice so demands.

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To grant such other further reliefs as this petitioner may pray for from time to time and which this Hon'ble Court deems fit to grant in the interests of justice.”

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Heard Sri.S.K.Saju, learned counsel appearing for the

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petitioner and Sri.P.J.Devaprasanth, learned Standing Counsel appearing for the respondent (Calicut Co-operative Urban Bank Ltd.).

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WP(C).No.467 OF 2020(G)

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The learned counsel for the petitioner submits that the time limit for complying with the conditional interim order dated 09.01.2020 rendered by this Court in this W.P(C), for payment of the amount of Rs.75,000/- is upto 31.01.2020 and that the petitioner would certainly comply with the said direction and would pay the said amount of Rs.75,000/- to the respondent-Bank on or before 31.01.2020. Further that, this Court may direct the respondent-Bank to give the petitioner 12 monthly instalments to clear the balance overdues for regularising the loan account.

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The learned counsel appearing for the respondent-Bank was requested to get instructions in the matter and today when the matter was taken up for consideration, Sri.P.J.Devaprasanth, learned Standing Counsel appearing for the respondent would submit on the basis of instructions of his party that in case, the petitioner complies with the abovesaid condition already imposed by this Court in paying an amount of Rs.75,000/- on or before 31.01.2020, subject to the payment of the regular EMIs in time and subject to the payment of all other applicable charges and interest thereon. The Bank is prepared to give one last opportunity to the petitioner to clear the balance overdues in

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WP(C).No.467 OF 2020(G)

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eight equal monthly instalments. It is also submitted by the learned counsel for the respondent-Bank that the overdues be paid by the petitioner in this loan transaction as on 14.01.2020 for regularising the loan account is around Rs.6,06,511/-.

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Accordingly, the following directions and orders are passed:

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(i) The competent official of the respondent Bank shall immediately furnish a comprehensive and authenticated statement of account pertaining to the loan transaction in question showing the precise details thereof and the total dues to be cleared by the borrower as on the date of issuance of the said statement.

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(ii)The petitioner shall immediately remit an amount of Rs.75,000/- (Rupees Seventy Five Thousand only) to the respondent-Bank on or before 31.01.2020.

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(iii) The petitioner is given further time to clear the balance overdues in eight equal monthly instalments starting on or before the end of February, 2020, inclusive of all the applicable charges and interest thereon and subject to condition that each of the subsequent instalments should be paid by the petitioner on or before the last working day of the month concerned. Until the expiry of the said time limit, further coercive steps in pursuance of the impugned proceedings shall be kept in abeyance by the respondent-Bank. The petitioner should also pay the regular EMIs in time.

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(iv) In case, the petitioner complies with all the above conditions and clears the entire dues as aforestated, then the respondent Bank may take necessary steps to ensure that the loan account of the petitioner is regularised.

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WP(C).No.467 OF 2020(G)

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(v)On the other hand, if the petitioner commits default of any one of the instalments, then the benefit of the abovesaid directions will stand automatically vacated without any further orders of this Court, in which case, the respondent Bank will be at liberty to proceed further with the impugned steps from the stage where it has stopped. In such an eventuality it is also ordered that the petitioner will have to give up all his contentions that are otherwise available to him to be raised in appropriate proceedings before the competent fora.

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With these observations and directions, the above Writ Petition (Civil) stands finally disposed of.

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Sd/-

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ALEXANDER THOMAS JUDGE

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vgd

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WP(C).No.467 OF 2020(G)

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE LOAN LEDGER OF THE PETITIONER FOR THE LOAN ACCOUNT NO.108230050000024 ISSUED BY THE RESPONDENT EXHIBIT P2 A COPY OF THE 13(2) NOTICE DATED 29.01.2019 ISSUED BY THE RESPONDENT TO THE PETITIONER EXHIBIT P3 A TRUE COPY OF THE NOTICE DATED 10.12.2019 ISSUED BY THE ADVOCATE COMMISSIONER

Jayaprakash K., v. the Calicut Cooperative Urban Bank Ltd.

Case brief

What is this about?

What did the court decide?

Jayaprakash K., v. the Calicut Cooperative Urban Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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