Partly allowed

Salin Chemmanad Masood, v. Housing Development Finance Corporation Limited

Kerala HC10 Jan 2020WP(C)/481/2020

Case brief

AI extract

What is this about?

The High Court allowed the petition, directing the bank to furnish accounts. Conditions were laid for the petitioner to pay outstanding dues in installments by 31.03.2020. Compliance would stay further proceedings under SARFAESI Act.

What did the court decide?

Petitioner to pay Rs.8,65,000/- in three installments by 31.03.2020; balance dues cleared on similar timeline; subsequent SARFAESI proceedings stayed conditionally.

Salin Chemmanad Masood, Vs Housing Development Finance… — Banking and Recovery | Kerala HC (2020)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS

¶4

FRIDAY, THE 10TH DAY OF JANUARY 2020 / 20TH POUSHA, 1941

¶5

WP(C).No.481 OF 2020(I)

¶6

PETITIONER/S:

¶7

SALIN CHEMMANAD MASOOD, S/O.MASOOD CHEMMANAD KASSIM, CHEMMANAD HOUSE, NEAR POST OFFICE, MALIPURAM, ERNAKULAM, KERALA- 682511, REPRESENTED BY FATHER AND POWER OF ATTORNEY HOLDER, MR.MASOOD CHEMMANAT KASIM, S/O.CHAMMANAT KHADER KASSIM, AGED 74 YEARS, CHAMMANAT HOUSE, MALIPURAM P.O., COCHIN, ERNAKULAM, KERALA- 682511.

¶8

BY ADV. SRI.JIMMY GEORGE (VATTATHARA)

¶9

RESPONDENT/S:

¶10

1 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED, REPRESENTED BY AUTHORISED OFFICER, HDFC HOUSE, POST BAG NO.1667, RAVIPURAM JUNCTION, M.G.ROAD, KOCHI682015.

¶11

2 AUTHORISED OFFICER, HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED, HDFC HOUSE, POST BAG NO.1667, RAVIPURAM JUNCTION, M.G.ROAD, KOCHI- 682015.

¶12

3 RUKSANA SALIN, AGED 35 YEARS

¶13

W/O.SALIN CHEMMANAD MASOOD, CHEMMANAD HOUSE, NEAR POST OFFICE, MALIPURAM, ERNAKULAM- 682511.

¶14

R2 BY ADV. SRI.K.K.CHANDRAN PILLAI (SR.) R2 BY ADV. SMT.S.AMBILY R2 BY ADV. SMT.NAMITHA NAMBIAR R2 BY ADV. SRI.SAJI THOMAS R2 BY ADV. SHRI.MICKY THOMAS R2 BY ADV. SHRI.MANU HORMIS WILSON

¶15

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶16

WP(C).No.481 OF 2020(I)

¶17

¶18

ALEXANDER THOMAS, J.

¶19

W.P.(C.) No. 481 of 2020

¶20

Dated this the 10^th day of January, 2020

¶21

JUDGMENT

¶22

The prayers in the W.P.(C.) are as follows :

¶23

“(i) call for the records pertaining to Exhibit P1 Demand Notice issued by the 1^st respondent. Housing Development Finance Corporation Limited, dated 12.08.2019 and quash the same by issuing a Writ of certiorari or any other appropriate Writ, Direction or Order.

¶24

(ii) Issue a Writ of mandamus or any other appropriate Writ, Direction or Order Directing the 1^st respondent to regularize the loan account of the petitioner with the 1^st respondent in the manner that it would be reasonable for the petitioner to repay the pending and future installments.

¶25

(iii) Issue any other writ, declaration, order or direction appropriate in the circumstances of the case.”

¶26

Heard Sri.Jimmy George (Vattathara), learned counsel appearing for the petitioner and Sri.K.K.Chandran Pillai, learned senior counsel instructed by Smt.S.Ambily, learned counsel appearing for R1 and R2 (HDFC). In the nature of the order proposed to pass in this petition, notice to respondent No.3 (co-borrower) will stand dispensed with.

¶27

Sri.K.K.Chandran Pillai, learned senior counsel instructed by Smt.S.Ambily, learned counsel appearing for the respondents (HDFC) would submit on the basis of instructions that earlier the petitioner had even refused to hand over the original of the sale deed in respect of the flat, which is the subject matter of the loan transaction and the respondent was even constrained to initiate a civil suit and obtain interim injunction,

¶28

WP(C).No.481 OF 2020(I)

¶29

¶30

whereby the petitioner was injuncted from alienating the subject flat property and therefore, the respondent bank does not have full confidence in the credibility of the petitioner. Further that, the overdues amount in this case for clearance of the regularization of the loan account is Rs.10,50,363/- as on 10.01.2020 (today) and out of which an amount of Rs.8,65,000/- has to be paid by the petitioner for clearing it out of the NPA status on or before 31.03.2020. Further, it is submitted on behalf of the respondent that the respondent is prepared to give time till 31.03.2020 to the petitioner to pay the amount of Rs.8,65,000/- in 3 installments, so as to take the loan out of the NPA status by then and if the petitioner complies with the said condition, then the petitioner can be given 3 monthly installments to clear the balance dues, subject to payment of all applicable charges and interest and also subject to paying the regular EMIs in time.

¶31

Further that, in case the petitioner complies these conditions, then the respondent bank is prepared to keep in abeyance the impugned proceedings until then. Further, it is also submitted that, in case the petitioner does not complies with any of the abovesaid conditions, then the respondent bank will be at liberty to proceed further with the impugned proceedings, from the stage, where it has stopped.

¶32

Accordingly, the following orders and directions are passed :

¶33

(1) The competent official of the respondent bank shall immediately furnish a comprehensive and authenticated statement of accounts

¶34

WP(C).No.481 OF 2020(I)

¶35

¶36

pertaining to the instant loan transaction so as to precisely and clearly show the total dues to be paid by the borrower in the above transaction and the details may also be shown in the said statement, as to how the said figures have been arrived at, to the petitioner and this may be done within one week.

¶37

(2) The petitioner will pay the total amount of Rs.8,65,000/- in 3 equal installments starting from 31.01.2020 (i.e. on or before 31.01.2020, 28.02.2020 and 31.03.2020). The petitioner should also pay the regular EMIs in time.

¶38

(3) In case, the petitioner pays the abovesaid amount on or before 31.03.2020 in 3 installments as aforedirected, then the petitioner is given time to clear the balance overdues in which applicable charges and interest as well as the regular EMIs in 3 equal installments starting from 30.04.2020 (i.e. on or before 30.04.2020, 31.05.2020 and 30.06.2020).

¶39

(4) Subject to compliance of all these conditions, it is ordered that the respondent bank will keep in abeyance further steps pursuant to the impugned proceedings until then. Further that, in case the petitioner does not complies with any of the abovesaid conditions, then the respondent bank will be at liberty to proceed further with the impugned proceedings from the stage, where it has stopped .

¶40

With these observations and directions, the above W.P.(C.) will stand disposed of.

¶41

Sd/-

¶42

ALEXANDER THOMAS, JUDGE

¶43

SKS

¶44

WP(C).No.481 OF 2020(I)

¶45

¶46

APPENDIX

¶47

PETITIONER'S/S EXHIBITS:

¶48

EXHIBIT P1 TRUE COPY OF NOTICE UNDER SECTION 13(2) OF SARFAESI ACT ISSUED TO THE PETITIONER BY 1ST RESPONDENT, BANK DATED 12.08.2019.

¶49

EXHIBIT P2 TRUE COPY OF STATEMENT OF ACCOUNT ISSUED BY HDFC LTD. DATED 15.11.2019.

Salin Chemmanad Masood, v. Housing Development Finance Corporation Limited

Case brief

What is this about?

What did the court decide?

Salin Chemmanad Masood, v. Housing Development Finance Corporation Limited

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Novateur Electrical and Digital Systems(P) Ltd., Vs the Assistasnt Commissioner

Juss Traders, Vs Hdb Financial Services Ltd.

Jayasree. S. Vs Thiruvananthapuram District Co-Operative Bank Limited

Balan, Vs Authorized Officer Syndicate Bank

Ramakrishnan, Vs the Irinjalakuda Town Co-Operative Bank

V.Jayachandran Pillai, Vs the State Tax Officer (Wc)