Allowed

P.K.Abdul Salam v. State Bank of India

Kerala HC23 Sept 2020WP(C)/764/2020

Case brief

AI extract

What is this about?

High Court allowed the petitioner to clear outstanding car loan dues in 9 monthly installments. Custody of seized vehicle restored upon first installment payment and undertaking not to alienate. Further coercive recovery proceedings stayed.

What did the court decide?

Loan account regularized with 9-month installment plan. Seized vehicle restored upon payment of first installment. Recovery proceedings stayed.

P.K.Abdul Salam Vs State Bank of India — 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 ALEXANDER THOMAS

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WEDNESDAY, THE 23RD DAY OF SEPTEMBER 2020 / 1ST ASWINA, 1942

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WP(C).No.764 OF 2020(U)

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PETITIONER/S:

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1 P.K.ABDUL SALAM,AGED 52 YEARS S/O.KOYA, HOUSE NO.CC1/1337, K.B.JACOB ROAD, NJALIPARAMBU, FORT KOCHI-682011, NOW RESIDING AT CC.12/808 A, KAPPALANDIMUKKU, MATTANCHERRY-682002.

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2 FASILA ABDUL SALAM, AGED 45 YEARS, W/O.P.K.ABDUL SALAM, HOUSE NO.CC1/1337, K.B.JACOB ROAD, NJALIPARAMBU, FORT KOCHI-682011, NOW RESIDING AT CC.12/808 A, KAPPALANDIMUKKU, MATTANCHERRY-682002.

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BY ADVS. SMT.C.G.PREETHA SRI.P.E.THOMAS

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RESPONDENT/S:

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1 STATE BANK OF INDIA, REPRESENTED BY ITS BRANCH MANAGER, MATTANCHERRY, KANDATHIL COMPLEX, P.T.JACOB ROAD, THOPPUMPADY, KOCHI-682005.

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2 THE AUTHORISED OFFICER, STATE BANK OF INDIA, RETAIL ASSETS CENTRAL PROCESSING CENTRE - 2, (RACPC-2), SBT AVENUE, PANAMPILLY NAGAR, ERNAKULAM-682036.

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OTHER PRESENT:

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SRI.JITHESH MENON, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.9.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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ALEXANDER THOMAS, J.

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

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W.P.(C).No. 764 of 2020

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

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Dated this the 23^rd day of September, 2020

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J U D G M E N T

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

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“i) To direct the respondents to regularise the loan account of the petitioners by permitting them to make monthly instalment payments and on regularising the loan account to restore possession of the vehicle to them.

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ii) Direction to the 2^nd respondent to consider and pass orders on Exhibit P5 and till then not to proceed with the sale.

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iii) Any other reliefs which this Hon'ble Court may deem fit and proper to grant the facts and circumstances of the case. ”

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Heard Sri.P.E.Thomas, learned counsel appearing for the

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petitioner and Sri.M.Jithesh Menon, learned counsel appearing for

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the respondents (State Bank of India).

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Smt.C.G.Preetha, learned counsel appearing for the respondent State Bank of India would now submit on the basis of the instructions of the party that since the petitioner has committed default in clearing the car loan arrears in question the vehicle has been seized, there is no question of regularization of such a loan account and that the total outstanding dues to be cleared by the petitioner as on today (23.9.2020) is Rs.4,71,993/- for closure of the loan account and that the respondent State Bank of India is prepared to give the petitioner one last opportunity to clear the outstanding

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W.P.(C).764/20 - : 3 :-

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dues for closure of the loan account by paying such outstanding dues in six monthly instalments and that until the expiry of the said time limit, further coercive steps will be kept in abeyance, subject to the petitioner not committing any default for payment of the monthly instalments. Further that, on the petitioner paying the first instalment, the custody of the seized vehicle will be given to him provisionally subject to necessary conditions that may be imposed by this Court that the petitioner shall not alienate or transfer the said vehicle until the closure of the loan account.

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Sri.P.E.Thomas, learned counsel appearing for the petitioner submits that in view of the financial difficulties and hardships caused on account of the Covid-19 pandemic issues, this Court may order that the total outstanding dues will be cleared by the petitioner in 9 equal monthly instalments. On being queried as to the stand of the respondent Bank on the said limited submission made by the petitioner, it appears that the respondent bank does not have any serious objection to the said course of action.

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Accordingly, the following directions and orders are

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passed;

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(i) The petitioner will clear the entire outstanding dues of the said car

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W.P.(C).764/20 - : 4 :-

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loan account in 9 equal monthly instalments, first of which shall be paid on or before 30.10.2020 and further monthly instalments will be payable on or before 30^th of every succeeding month.

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(ii) Subject to the above conditions, it is ordered that the respondent bank shall not proceed further with the impugned proceedings for recovery of the amounts due as against the petitioner in relation to the car loan account in question until the expiry of the abovesaid time limit. However, in case the petitioner defaults in making any one of the monthly instalments as aforesaid, then the respondent Bank will be at liberty to immediately proceed with the impugned proceedings from the stage where it has stopped.

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(iii) Further, in case the petitioner pays the abovesaid first instalment, then the respondent Bank will immediately give provisional custody of the seized vehicle to the petitioner subject to the condition that the petitioner will swear to an affidavit undertaking that he will not alienate, transfer or encumber the said vehicle without the express permission in writing by the respondent State Bank of India. The petitioner will also give an undertaking before the registration authority concerned under the Motor Vehicles Act, 1988 (RTO concerned) stating that he will not transfer, encumber or alienate the said vehicle without the permission of the respondent State Bank of India.

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With these observations and directions, the above Writ Petition

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(Civil) stands finally disposed of.

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ALEXANDER THOMAS, JUDGE

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Sd/-

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sdk+

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W.P.(C).764/20 - : 5 :-

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1	THE TRUE LOAN ACC 14.3.2014	COPY OF THE STATEMENT WITH RESPECT TO OUNT NO.33732863982 FOR THE PERIOD TO 25.11.2019.
EXHIBIT P2	THE TRUE RESPONDEN	COPY OF THE NOTICE ISSUED BY THE 2ND T TO THE PETITIONERS DATED 5.11.2019.
EXHIBIT P3	THE TRUE RESPONDEN	COPY OF THE NOTICE ISSUED BY THE 2ND T TO THE PETITIONERS DATED 25.11.2019.
EXHIBIT P4	THE TRUE THE REMIT TOWARDS L	COPY OF THE PAY IN SLIPS EVIDENCING TANCE OF RS.1,50,000/- AND RS.74,000/- OAN ACCOUNT NO.33732863982.
EXHIBIT P5	THE TRUE BY THE 1S DATED 7.1	COPY OF THE REPRESENTATION SUBMITTED T PETITIONER BEFORE THE 2ND RESPONDENT .2020.
EXHIBIT P6	THE TRUE FURNISHED DATED 27/	COPY OF THE STATEMENT OF ACCOUNT BY THE BANK TO THE 1ST PETITIONER 2/2020
EXHIBIT P7	THE TRUE PETITIONE 07/03/202	COPY OF THE AFFIDAVIT FILED BY THE 1ST R BEFORE THE 1ST RESPONDENT DATED 0
EXHIBIT P8	THE TRUE SUBMITTED TRANSPORT	COPY OF THE WRITTEN UNDERTAKING BY 1ST PETITIONER BEFORE THE OFFICER DATED 7/3/2020
EXHIBIT P9	THE TRUE BY THE P DATED 06/	COPY OF THE REPRESENTATION SUBMITTED ETITIONER BEFORE THE 1ST RESPONDENT 03/2020

P.K.Abdul Salam v. State Bank of India

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P.K.Abdul Salam v. State Bank of India

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