Allowed

Akash v. the Branch Manager,Kerala State Co-Operative Bank (Erstwhile Thrissur District Co-Operative Bank)

Kerala HC2 Feb 2021WP(C)/2545/2021

Case brief

AI extract

What is this about?

In a writ petition seeking regularization of a loan account and stay on SARFAESI action due to the petitioner's financial crunch caused by his mother's illness, the court permitted payment of overdue amount in 10 equal monthly installments. Non-compliance allows resumption of SARFAESI proceedings.

What did the court decide?

Permited to clear entire overdue loan amount in 10 monthly installments; respondents to keep SARFAESI action in abeyance; action resume on any single default.

Akash Vs the Branch Manager,Kerala State Co-Operative… — 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 A.M.BADAR

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TUESDAY, THE 02ND DAY OF FEBRUARY 2021 / 13TH MAGHA,1942

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WP(C).No.2545 OF 2021(P)

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PETITIONER:

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AKASH AGED 27 YEARS S/O.CHANDRAN, KARANATH HOUSE, VELOOR DESOM, VELOOR VILLAGE, KUNNAMKULAM THALUK, THRISSUR - 680 601.

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BY ADV. SRI.MAHESH V.MENON

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RESPONDENTS:

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1 THE BRANCH MANAGER, KERALA STATE CO-OPERATIVE BANK (ERSTWHILE THRISSUR DISTRICT CO-OPERATIVE BANK) KECHERI BRANCH, KECHERI P.O., THRISSUR DISTRICT, PIN - 680 501.

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2 THE AUTHORIZED OFFICER KERALA STATE CO-OPERATIVE BANK, SAHAKARANA SATHABADI MANDIRAM, KOVILAKATHUMPADAM, THRISSUR DISTRICT, PIN - 680 022.

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OTHER PRESENT:

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SMT ANITHA GEORGE, SC.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C) No.2545/2021

JUDGMENT

Dated this the 2nd day of February 2021

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By this writ petition, the petitioner is seeking the following reliefs:

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(i) To direct the 1^st respondent bank to regularize the loan account and allow the petitioner to remit the outstanding defaulted EMIs in 15 equal monthly instalments along with the regular EMIs by issue of a writ of mandamus or such other writ or order or direction.

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(ii) Alternatively direct the 1^st respondent bank to allow the petitioner to remit the outstanding liabilities in 24 equal monthly instalments by issue of a writ of mandamus or such other writ or order or direction.

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Heard both sides. Learned counsel for the petitioner

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argued that the petitioner is not desirous of challenging the steps taken by the secured creditor under the SARFAESI Act but he wants to regularize the loan account by repayment of the overdue amount.

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Learned counsel appearing for respondents is having no objection to this course of action. She argued that not more than seven instalments should be granted to the petitioner to clear the overdue amount of loan.

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W.P.(C) No.2545/2021

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I have considered the submissions so advanced. The duly sworn testimony of the petitioner shows that the mother of the petitioner suffered from cardiac problem and as such, the petitioner was in financial crunch and could not remit the instalments in due time. The loan was taken in the year 2018 and it is for a period of ten years.

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In this view of the matter, interest of justice would be served with the following order:

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The petitioner is permitted to clear the entire overdue amount of loan in ten equated monthly instalments commencing from 15.02.2021 apart from payment of regular EMIs. If the petitioner complies with these directions, respondents shall keep the action under the SARFAESI Act in abeyance. In case of single default in compliance of this order, respondents may continue with the action under the SARFAESI Act. The petitioner shall not be granted any further time to comply the directions contained in this judgment.

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This writ petition is disposed of as above.

Sd/-

A.M.BADAR JUDGE

smp

W.P.(C) No.2545/2021

APPENDIX

PETITIONER'S EXHIBITS:

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EXHIBIT P1

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A TRUE COPY OF THE PUBLIC NOTICE DATED 04/01/2021 ISSUED BY THE 2ND RESPONDENT UNDER 13(4) OF THE SARFAESI ACT AGAINST THE PROPERTY IN THE NAME OF FATHER OF THE PETITIONER.

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EXHIBIT P1(a) ENGLISH TRANSLATION OF EXT.P1 NOTICE.

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RESPONDENTS' EXHIBITS: NIL.

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True Copy

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P.S to Judge

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smp

Akash v. the Branch Manager,Kerala State Co-Operative Bank (Erstwhile Thrissur District Co-Operative Bank)

Case brief

What is this about?

What did the court decide?

Akash v. the Branch Manager,Kerala State Co-Operative Bank (Erstwhile Thrissur District Co-Operative Bank)

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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