Disposed

Rakhi K.B. v. the Authorized Officer, Catholic Syrian Bank

Kerala HC3 Feb 2021WP(C)/2741/2021

Case brief

AI extract

What is this about?

The High Court of Kerala directed the petitioner to clear her outstanding bank loan through ten equated monthly installments. Compliance prevented coercive SARFAESI action, while any single default would trigger such action.

What did the court decide?

Petitioner directed to clear outstanding loan in ten equated monthly installments from 01.03.2021; no coercive SARFAESI action if complied; single default triggers SARFAESI action.

Rakhi K.B. Vs the Authorized 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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WEDNESDAY, THE 03RD DAY OF FEBRUARY 2021 / 14TH MAGHA,1942

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WP(C).No.2741 OF 2021(P)

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PETITIONER:

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RAKHI K.B. AGED 45 YEARS W/O.SUNILKUMAR, PROPRIETOR, M/S.TEENAGE, SARAYU, TIRUVANGAD, KUTTIMAKKOOL, KANNUR DISTRICT - 670 103.

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BY ADVS. SRI.C.P.PEETHAMBARAN SMT.MINI.V.A.

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RESPONDENTS:

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1 THE AUTHORIZED OFFICER, CATHOLIC SYRIAN BANK NORTH KERALA ZONE, P.O.ERAHIPALAM, KOZHIKODE, PIN - 673 006.

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2 THE BRANCH MANAGER CATHOLIC SYRIAN BANK, THALASSERY BRANCH, KANNUR DISTRICT - 670 101.

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R1-2 BY ADV. SRI.K.ANAND

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SC--ANAND KARUNAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.2741 OF 2021(P)

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JUDGMENT

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Dated this the 3rd day of February 2021

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Heard both sides.

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The petitioner business-woman had taken cash credit facility for Rs.60,00,000/- for her garment business. It is case of the petitioner that on account of demonetization and fluctuation in the market, her business suffered and as such, she could not repay her loan promptly.

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Learned counsel for the petitioner submits that the petitioner is bonafidely desirous of clearing the entire outstanding amount towards cash credit facility taken by her in installments.

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Learned counsel for the respondents submits that as on date, more than Rs.63,00,000/- are outstanding against the petitioner and on 08/07/2019, notice under Section 13(2) of the SARFAESI Act

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was issued and ultimately possession of secured asset was taken on 19/11/2020.

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Learned counsel for the respondents submits that it is not possible to grant 25 installments as prayed, but considering the request for installments, this Court may grant appropriate installments for clearing the entire outstanding amount of loan and other dues.

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Having considered the submissions so advanced, and

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WP(C).No.2741 OF 2021(P)

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keeping in mind the facts and circumstances of the instant case, this petition is disposed of with the following direction.

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a. The petitioner to clear the entire outstanding amount against her loan account with necessary charges in ten equated monthly installments commencing from 01.03.2021. If the petitioner complies with this order, then the respondents shall not continue with coercive action under the SARFAESI Act.

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b. A single default by the petitioner will entail the respondents to continue with the action under the SARFAESI Act. No further extension of time for compliance of this order shall be granted to the petitioner. Petitioner shall not create any third party interest over the property.

Sd/-

A.M.BADAR

Nsd

//true copy// PA to Judge

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JUDGE

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WP(C).No.2741 OF 2021(P)

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE NOTICE DATED 8/7/2019 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE NOTICE DATED 19/11/2020 ISSUED BY THE 1ST RESPONDENT.

Rakhi K.B. v. the Authorized Officer, Catholic Syrian Bank

Case brief

What is this about?

What did the court decide?

Rakhi K.B. v. the Authorized Officer, Catholic Syrian Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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