Disposed

Surekha.K.C v. the Branch Manager

Kerala HC21 Jul 2020WP(C)/8540/2020

Case brief

AI extract

What is this about?

A single-judge bench disposed of a writ petition filed under Section 14 of the SARFAESI Act. The petitioner, suffering financial hardship, admitted arrears in a loan defaulted from the respondent bank. The Court directed the petitioner to pay a lump sum and subsequent installments, with recovery proceedings kept in abeyance upon compliance.

What did the court decide?

Directs petitioner to pay Rs.2,00,000/- by 10.08.2020 followed by balance in 12 monthly installments. Recovery proceedings kept in abeyance upon compliance.

Surekha.K.C Vs the Branch Manager — 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 A.K.JAYASANKARAN NAMBIAR

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TUESDAY, THE 21ST DAY OF JULY 2020 / 30TH ASHADHA, 1942

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WP(C).No.8540 OF 2020(N)

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PETITIONER:

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SUREKHA.K.C AGED 58 YEARS W/O.SADANANDAN, KARYATTUKARAKKARAN HOUSE, MANAKKODY, CHETTUPUZHA.P.O, THRISSUR DISTRICT-680012

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BY ADV. SRI.MAHESH V.MENON

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RESPONDENTS:

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1 THE BRANCH MANAGER HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED, THRISSUR BRANCH, 3RD FLOOR, CENTRE POINT MG ROAD, THRISSUR, PIN-680004

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2 THE AUTHORIZED OFFICER HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED, THRISSUR BRANCH, 3RD FLOOR, CENTRE POINT MG ROAD, THRISSUR, PIN-680004

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R1-2 BY ADV. SRI.K.K.CHANDRAN PILLAI (SR.) R1-2 BY ADV. SRI.SAJI THOMAS R1-2 BY ADV. SHRI.MICKY THOMAS R1-2 BY ADV. SHRI.MANU HORMIS WILSON

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C).No.8540 of 2020

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JUDGMENT

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The petitioner who had availed a loan from the respondent bank defaulted in repayment of the same. The bank accordingly initiated recovery steps for recovery of the amounts from the petitioner. Ext.P1 is the notice issued by the Advocate Commissioner pursuant to the order of the Chief Judicial Magistrate Court, Thrissur, under Section 14 of the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest Act, 2002, hereinafter referred to as the 'SARFAESI Act'. The learned Senior counsel for the respondent bank would submit that the overdue amount in respect of the loan availed by the petitioner, as on today, is Rs.7,36,826/-. It is submitted that if the petitioner can pay a lump-sum amount initially, then the bank is willing to offer the petitioner installment facilities to regularise the loan account, while continuing to pay the regular EMI’s as per the original loan schedule.

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Taking note of the said submission on behalf of the bank, as also the plea of financial hardship urged on behalf of the petitioner, I dispose the writ petition with the following directions:-

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(i) The petitioner shall, by 10.08.2020, pay an amount of Rs.2,00,000/- to the respondent bank. Thereafter, the petitioner shall pay the balance amount of Rs.5,36,826/- together with accrued interest thereon, in 12 equal and successive monthly installments commencing from 07.09.2020.

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W.P.(C).No.8540 of 2020

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It is made clear that the petitioner shall also continue to pay the regular monthly installments as per the original loan schedule, over and above the aforesaid payments directed by this Court. On the petitioner paying the amounts as above, the recovery proceedings initiated against him by the respondent bank, including the operation of the order of the Chief Judicial Magistrate under Section 14, shall be kept in abeyance.

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(ii) If the petitioner commits a default in respect of any of the installments, he will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against him 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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mns/21.7.2020

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W.P.(C).No.8540 of 2020

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 A TRUE COPY OF THE NOTICE ISSUED B THE ADVOCATE COMMISSIONER DATED 12.03.2020 AND ITS TRANSLATION

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RESPONDENTS EXHIBITS:NIL

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//TRUE COPY//

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P.A TO JUDGE

Surekha.K.C v. the Branch Manager

Case brief

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Surekha.K.C v. the Branch Manager

Case brief

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