Allowed

Manikantan Nair B., v. the Chief Manager

Kerala HC6 Oct 2021WP(C)/17840/2021

Case brief

AI extract

What is this about?

In a writ petition regarding loan default and recovery proceedings under the SARFAESI Act, the High Court of Kerala directed the bank to accept repayment of the overdue amount in nine instalments, regularize the account upon compliance, and keep coercive steps in abeyance.

What did the court decide?

Bank directed to accept repayment in 'nine' instalments, regularize account upon payment, and keep coercive steps in abeyance.

Manikantan Nair B., Vs the Chief Manager — Banking and Recovery | Kerala HC (2021)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

¶4

WEDNESDAY, THE 6^TH DAY OF OCTOBER 2021 / 14TH ASWINA, 1943

¶5

WP(C) NO. 17840 OF 2021

¶6

PETITIONERS:

¶7

MANIKANTAN NAIR B., AGED 61 YEARS S/O. BHASKARAN NAIR, ARUNODHAYAM, DARSHAN LANE, MUKKOLA KACHANI, KARKULAM P.O. TRIVANDRUM 695 564.

¶8

BY ADVS.SUSHANTH.J. C.K.PREM RAJ

¶9

RESPONDENTS:

¶10

1 THE CHIEF MANAGER, CAN FIN HOMES LIMITED, 28/2452, GROUND FLOOR, M.G. ROAD, TRIVANDRUM 695 001.

¶11

2 AUTHORISED OFFICER,

¶12

CAN FIN HOMES LTD, 28/2452, GROUND FLOOR, MG. ROAD, TRIVANDRUM 695 001.

¶13

BY ADVS. B.ASHOK KUMAR C.M.PRADEEP KUMAR P.S.MANOJ KUMAR

¶14

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶15

WP(C) NO. 17840 OF 2021

¶16

¶17

BECHU KURIAN THOMAS, J =========================== W.P.(C) No.17840 of 2021

¶18

--------------------------------Dated this the 6th day of October, 2021

¶19

JUDGMENT

¶20

Petitioner is a borrower from the respondent bank. He has

¶21

committed default in repayment of the loan amount. Consequently, proceedings have been initiated by the bank for recovery of the amounts due from the petitioner after recalling the loan.

¶22

Though petitioner has raised various challenges in the writ petition, during the course of the hearing, petitioner has confined the relief to an opportunity for repaying the overdue amount in instalments and to obtain regularisation of the loan account.

¶23

It was submitted on behalf of the respondent bank that petitioner had committed default in repayment of the loan amount and hence petitioner's account was classified as nonperforming. The overdue amount is stated to be Rs.14,01,000/-.

¶24

It was further submitted that even though proceedings for

¶25

WP(C) NO. 17840 OF 2021

¶26

¶27

recovery have been initiated, as a matter of indulgence, respondent bank is willing to accept repayment of the overdue amount in limited instalments. Apart from the above, it was also submitted that if the petitioner is willing to repay the overdue amount as directed by this Court, the respondent bank is willing to regularise the loan account.

¶28

I have heard Adv.Sushanth J., learned counsel for the petitioner as well as Adv.B.Ashok Kumar, the learned Standing Counsel for the respondents.

¶29

Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the overdue amount in 'nine' instalments and, thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.

¶30

Accordingly, there will be a direction to the respondent bank

¶31

to accept repayment of the entire overdue amount of

¶32

WP(C) NO. 17840 OF 2021

¶33

¶34

Rs.14,01,000/- along with bank charges from the petitioner and

¶35

regularise the loan account of the petitioner on the following conditions:

¶36

(i). The petitioner shall deposit an amount of Rs.2,00,000/-

¶37

[Rupees Two lakhs only] on or before 30.10.2021 and the balance overdue amount shall be repaid in '8' equated monthly instalments.

¶38

(ii). The second instalment shall be paid on or before 30.11.2021.

¶39

(iii). Petitioner shall continue to pay the regular EMI’s along with the instalments directed above.

¶40

(iv). In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.

¶41

(v) In order to enable the petitioner to repay the entire amounts, all coercive steps shall be kept in abeyance.

¶42

The above writ petition is disposed of as above.

¶43

BECHU KURIAN THOMAS,

¶44

AMV/06/10//2021

¶45

WP(C) NO. 17840 OF 2021

¶46

¶47

APPENDIX OF WP(C) 17840/2021

¶48

PETITIONER EXHIBITS

¶49

Exhibit P1 TRUE COPY OF THE NOTICE DATED 6.8.2021 ISSUED BY THE ADVOCATE COMMISSIONER FOR TAKING POSSESSION OF TH PETITIONER'S PROPERTY UNDER THE SARFAESI ACT.

¶50

Exhibit P2 TRUE COPY OF THE NOTICE ISSUED BY THE RESPONDENTS DATED 12.06.2019 TO THE PETITIONER.

¶51

RESPONDENTS EXHIBITS NIL

Manikantan Nair B., v. the Chief Manager

Case brief

What is this about?

What did the court decide?

Manikantan Nair B., v. the Chief Manager

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

Zubair v Vs State of Kerala

Aswin Associates Vs the Deputy Commissioner of Income Tax

Cochin Refineries Employees Association Vs Union of India

Prasanna Kumar R Vs the District Labour Officer

Nishad M.B Vs the District Labour Officer

Asianet Digital Network Private Limited Vs Union of India