Allowed

Nancy Joseph v. the Authorised Officer Under Sarfaesi Act

Kerala HC15 Jan 2020WP(C)/54/2020

Case brief

AI extract

What is this about?

In this writ petition, the petitioner sought an order to regularize loan accounts and stay SARFAESI proceedings. The Court, interceding between the petitioner and the State Bank of India, directed the bank to allow repayment of outstanding dues in 10 monthly installments.

What did the court decide?

Petitioner allowed 10 monthly installments to clear outstanding dues; SARFAESI proceedings stayed pending payment; bank to furnish account statement within one week.

Nancy Joseph Vs the Authorised Officer Under Sarfaesi Act — 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

WEDNESDAY, THE 15TH DAY OF JANUARY 2020 / 25TH POUSHA, 1941

¶5

WP(C).No.54 OF 2020(F)

¶6

PETITIONER:

¶7

NANCY JOSEPH

¶8

W/O. JOSEPH A. T., ARAMPILLY HOUSE, PROPRIETIX, ST. MARYS OIL AND FLOUR MILLS, MELOOR P. O., THRISSUR DISTRICT.

¶9

BY ADV. SRI.JOSE J.MATHAIKAL

¶10

RESPONDENTS:

¶11

1 THE AUTHORISED OFFICER UNDER SARFAESI ACT STATE BANK OF INDIA, CHALAKUDY BRANCH, THRISSUR, PIN - 680 307.

¶12

2 THE STATE BANK OF INDIA CHALAKUDY BRANCH, KALLELY ESTATE, CHALAKUDY, PIN - 680 307, THRISSUR DISTRICT, REPRESENTED BY ITS MANAGER.

¶13

OTHER PRESENT:

¶14

SRI.G.G.MANOJ, SC

¶15

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶16

WP(C).No.54 OF 2020(F)

¶17

¶18

ALEXANDER THOMAS, J.

¶19

W.P.(C.) No. 54 of 2020

¶20

Dated this the 15^th day of January, 2020

¶21

O R D E R

¶22

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

¶23

i. “To issue a writ of mandamus or such other writ or order commanding the respondents to permit the petitioner to regularise the loan accounts which are mentioned in Exhibits P1 and P2 notices by remitting the existing arrears in easy monthly installments and then continue to pay the regular monthly installments and close the loan.

¶24

ii. To direct the respondents to keep in abeyance all further steps under the SARFAESI Act against the petitioner pursuant to Exhibits P1 and P2. iii. To grant such other reliefs that may be deemed just and proper by this Honourable court and to allow this writ petition with costs.”

¶25

Heard Sri.Jose J Matheikel, learned counsel appearing for the

¶26

petitioner and Sri.G.G.Manoj, learned Standing Counsel appearing for the respondents (State Bank of India).

¶27

The learned counsel appearing for the respondents State Bank of India was requested to get instructions in the matter. Sri.G.G.Manoj, the learned counsel appearing for the respondents would submit on the basis of instructions of the party that initially an overdraft (OD facility) for Rs.85 lakhs and a term loan of Rs.8 lakhs was sanctioned by the respondent, State Bank of India to the petitioner on 03.10.2016 and after the floods in August 2018, the overdraft of Rs.85 lakhs was modified as a cash credit facility of Rs.60 lakhs and a working capital demand loan of Rs.25 lakhs and that as of now, including the term loan of Rs.8 lakhs, there

¶28

WP(C).No.54 OF 2020(F)

¶29

¶30

are three transactions between the petitioner and the respondent bank. But that the petitioner has not paid any due amounts so far and has been a consistent defaulter. Therefore, the bank is not in a position to grant time to the petitioner to regularise even the term loan. Further that, the respondent State Bank of India is prepared to give to the petitioner one last opportunity to clear off the entire total outstanding dues (which comes to approximately Rs.1,00,07,314/- as on today, ie.15.01.2020), subject to the condition that the petitioner should clear such total outstanding dues in 8 equal monthly installments. The learned counsel for the petitioner submits that the petitioner would require at least 12 monthly installments to clear the dues.

¶31

After hearing both sides, this Court suggested that the said 8 installments could be modified as 10 installments. Due to persuasion made by this Court, the respondent bank does not appear to have very serious objection to the said suggestion made by the Court. The respondent bank is prepared to give 10 equal monthly installments to clear off entire overdue amounts starting from 10.02.2020, but subject to payment of all other applicable charges and interests. Until then, the impugned proceedings will be kept in abeyance by the respondent bank and further that, the respondent bank would submit that in case the petitioner makes default in anyone of the abovesaid conditions, then the bank will be at liberty to proceed further with the impugned proceedings, from the stage where it

¶32

WP(C).No.54 OF 2020(F)

¶33

¶34

has stopped.

¶35

Accordingly, the following directions and orders are passed :

¶36

(1) The competent official of the respondent bank shall immediately furnish a comprehensive and authenticated statement of accounts pertaining to the instant loan transactions so as to precisely and clearly show the total dues to be paid by the borrower in the above transactions 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 shall clear the entire outstanding dues with all applicable charges and interest in 10 equal monthly installments starting from 10.02.2020 and ending on 10.11.2020. The subsequent installments shall be paid by the petitioner on or before 10^th of every respective months. Until then, further steps in pursuance to the impugned proceedings will be kept in abeyance.

¶38

(3) However, in case the petitioner commits default of anyone 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.

¶39

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

¶40

Sd/-

¶41

ALEXANDER THOMAS, JUDGE

¶42

SKS

¶43

WP(C).No.54 OF 2020(F)

¶44

¶45

APPENDIX

¶46

PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF NOTICE DATED 25.7.2019. EXHIBIT P2 TRUE COPY OF NOTICE DATED 5.10.2019.

Nancy Joseph v. the Authorised Officer Under Sarfaesi Act

Case brief

What is this about?

What did the court decide?

Nancy Joseph v. the Authorised Officer Under Sarfaesi Act

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

Baiju K.P. Vs the Branch Manager, Kozhikode District Co-Operative Bank

Divya, Vs State of Kerala

Abdul Bari Vs Kozhikode District Co-Operative Bank Ltd.

K.Vijayamma Vs Kerala State Co-Operative Bank Ltd.

Hashimudeen, Vs the Authorised Officer/Divisional Manager

Sauda Beevi Shoukathali, Vs State of Kerala