Disposed

Padmakumar v. the Pannivizha Service Co-Operative Bank Ltd. NO.891

Kerala HC1 Oct 2021WP(C)/16327/2021

Case brief

AI extract

What is this about?

The Court disposed of a Writ Petition by recording a cooperative settlement between the Bank and the borrower. The Bank waived penal interest, and the Court fixed the liability in instalments, preserving the Bank's right to execute if defaults occur.

What did the court decide?

Fixed dues at ₹8,87,010/-; 15 monthly instalments at 12% interest; conditions for execution on default of three instalments; ARC proceedings to award accordingly.

Padmakumar Vs the Pannivizha Service Co-Operative Bank… — Banking and Recovery | Kerala HC (2021)

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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 SATHISH NINAN

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FRIDAY, THE 1^ST DAY OF OCTOBER 2021 / 9TH ASWINA, 1943

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WP(C) NO. 16327 OF 2021

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PETITIONER:

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PADMAKUMAR AGED 58 YEARS S/O.SAMBASIVAN, KRISHNA VILASOM VEEDU, KARUVATTA MURI, PERINGANADU VILLAGE, PATHANAMTHITTA DISTRICT - 685 590.

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BY ADVS. MANU RAMACHANDRAN M.KIRANLAL R.RAJESH (VARKALA) T.S.SARATH SAMEER M NAIR

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RESPONDENTS:

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1 THE PANNIVIZHA SERVICE CO-OPERATIVE BANK LTD NO.891 ANANDAPALLY, ADOOR TALUK, PATHANAMTHITTA - 691 525 REPRESENTED BY ITS SECRETARY.

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2 THE SPECIAL SALES OFFICER PARAKODE SCB GROUP, OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), ADOOR, PATHANAMTHITTA DISTRICT - 691 523.

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BY SRI.BIMAL K. NATH, SR. GOVT. PLEADER BY ADV K.SHAJ

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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SATHISH NINAN, J.

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= = = = = = = = = = = = = = = = = = W. P. (C) No.16327 of 2021 = = = = = = = = = = = = = = = = = = Dated this the 1^st day of October, 2021

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J U D G M E N T

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The petitioner availed loan of `5 lakhs from the

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first respondent Bank in the year 2013. Consequent on

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the default in repayment, the Bank initiated ARC proceedings. The proceeding is pending before the Assistant Registrar, Adoor. The petitioner has approached this Court seeking waiver of penal interest and for grant of easy monthly installments to wipe off the entire liability.

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A statement dated 20.09.2021 has been filed by the learned Standing Counsel for the Bank wherein it has been stated that, as on 16.09.2021 the total amount due from the petitioner, including interest at the rate of 13.5% per annum and penal interest is 9,80,688/-. It is further stated that the Bank is willing to waive an amount of 93,678/- therefrom and to permit the

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W. P. (C) No.16327 of 2021

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-: 2 :-

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petitioner to pay the balance amount in fifteen equal monthly installments with interest at the rate of 12% per annum. The only condition which the Bank seeks to impose is that, in case the petitioner defaults in payment of three consecutive installments the Bank may be permitted to recover the then dues, with interest at

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the rate of 12% per annum by way of execution proceedings, without having to take recourse to a fresh ARC proceeding. The petitioner accepts the offer made by the Bank and has filed an affidavit dated 25.09.2021 before this Court to the said effect.

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In the light of the above, the writ petition is disposed of as follows:-

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(i) The total amount due from the petitioner to the first respondent Bank as on 16.09.2021 is fixed at 8,87,010/- (9,80,688 minus `93,678).

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(ii) The amount in clause(i) shall bear interest at

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the rate of 12% per annum from 16.09.2021, till full satisfaction.

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W. P. (C) No.16327 of 2021

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-: 3 :-

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(iii) The amount as in clauses (i) and (ii) above

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shall be payable in 15 equal monthly installments commencing from 15^th November, 2021.

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(iv) In case of default in payment of three

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consecutive installments, the balance amount due, with interest at 12% thereon, shall be recoverable by the respondent Bank.

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(v) It will be open for either the petitioner or the first respondent to produce a copy of this judgment in the ARC proceedings. An award shall be passed in the ARC on the above terms, which award shall be open for execution in case of default.

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Sd/-

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SATHISH NINAN JUDGE

kns/-

//True Copy//

P.S. to Judge

APPENDIX OF WP(C) 16327/2021

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PETITIONER EXHIBITS

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Exhibit P1 THE TRUE COPY OF THE RELEVANT PAGES OF INDIAN PASSPORT NO.J793362 OF THE PETITIONER. Exhibit P2 THE TRUE COPY OF THE PLAINT IN ARC NO.202/2021 WITH THE SUMMONS ISSUED BY THE 2ND RESPONDENT. Exhibit P3 THE TRUE COPY OF THE REPRESENTATION DATED 06/0/2021 PREFERRED BY THE PETITIONER TO THE 1ST RESPONDENT.

Padmakumar v. the Pannivizha Service Co-Operative Bank Ltd. NO.891

Case brief

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Padmakumar v. the Pannivizha Service Co-Operative Bank Ltd. NO.891

Case brief

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