Disposed

V.J.Sabu v. the Authorised Officer

Kerala HC1 Feb 2021WP(C)/2428/2021

Case brief

AI extract

What is this about?

The court disposed of a writ petition filed by a bank loan defaultee who sought regularization of his account citing demonetization and pandemic impacts. The High Court directed the petitioner to deposit Rs. 5 lakhs within March 2021 and repay the rest in five monthly installments while paying regular EMIs, on the condition that no coercive action would be initiated, with a single default triggeri

What did the court decide?

Petitioner directed to deposit Rs. 5 lakhs by 30.03.2021 and repay balance in five monthly installments commencing 05.04.2021; no coercive action if complied; any default triggers recovery.

V.J.Sabu Vs the Authorised Officer — Contract and Commercial Disputes | 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 A.M.BADAR

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MONDAY, THE 01ST DAY OF FEBRUARY 2021 / 12TH MAGHA,1942

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WP(C).No.2428 OF 2021(C)

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PETITIONER:

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V.J.SABU S/O.JOSE, VELLANI HOUSE, PARIYARAM, THRISSUR DISTRICT.

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BY ADVS. SRI.K.S.RAJESH SRI.M.SHAJU PURUSHOTHAMAN

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RESPONDENTS:

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1 THE AUTHORISED OFFICER, THE KERALA STATE CO-OPERATIVE BANK LTD., TUDA ROAD, KOVILAKATHUMPADAM P.O., THIRUVAMBADY, THRISSUR-680 022.

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2 THE KERALA STATE CO-OPERATIVE BANK LTD., CHALAKUDY BRANCH, P.O.CHALAKUDY, THRISSUR DISTRICT, PIN-680 307, REP. BY ITS MANAGER.

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OTHER PRESENT:

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SRI GILBERT GEORGE CORREYA, SC.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C) No.2428/2021

JUDGMENT

Dated this the 1^st day of February 2021

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By this writ petition, the petitioner seeks for a direction to

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the respondents to permit the petitioner to regularize the petitioner's loan accounts by way of remitting entire overdue amount in 12 equal monthly instalments.

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Heard both sides. Learned counsel for the petitioner argued that the petitioner had taken two housing loans from the respondents but because of demonetisation and financial crunch resulted therefrom, his business suffered. Similarly, the lock down imposed due to pandemic Covid-19 has further aggravated the situation and therefore, the petitioner could not repay the amount of loan. It is also argued that the petitioner is ready and willing to repay the entire overdue amount of loan in instalments.

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As against this, learned Standing Counsel appearing for respondents argued that if the petitioner deposits substantial amount of overdue loan by the end of March 2021, request of the petitioner be considered in the light of the fact that the term of the loan is not over.

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Having considered the facts stated by the parties, this writ petition is disposed of with the following directions:

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W.P.(C) No.2428/2021 3

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The petitioner to deposit an amount of Rs.5 lakhs towards repayment of overdue amount of loan by the end of March 2021. The rest of the amount of overdue loan be refunded in five equated monthly instalments commencing from 05.04.2021. In addition the petitioner to pay regular EMIs. If these directions are followed, then the respondents shall not take any coercive action against the petitioner. Needless to mention that single default will entail the respondents to continue with the recovery proceedings.

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No further extension of time shall be granted to the petitioner for complying directions given in the judgment.

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This writ petition is disposed of accordingly.

Sd/-

A.M.BADAR

JUDGE

smp

W.P.(C) No.2428/2021

APPENDIX

PETITIONER'S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE POSSESSION NOTICE DATED 28.12.2020 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 13(4) OF THE SECURITIZATION ACT.

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True Copy

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P.S to Judge

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smp

V.J.Sabu v. the Authorised Officer

Case brief

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V.J.Sabu v. the Authorised Officer

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