Disposed

Thomas Perumana v. the Kerala State Co-Operative Bank Ltd.

Kerala HC5 Feb 2021WP(C)/2782/2021

Case brief

AI extract

What is this about?

The Court disposed of a writ petition seeking quashing of notices and regularization of bank accounts. The Court directed petitioners to clear outstanding dues via equated monthly installments, linking non-coercive SARFAESI action to compliance.

What did the court decide?

Petitioners directed to clear outstanding amount in ten equated monthly installments; SARFAESI action stayed if no default.

Thomas Perumana Vs the Kerala State… — 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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FRIDAY, THE 05TH DAY OF FEBRUARY 2021 / 16TH MAGHA,1942

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WP(C).No.2782 OF 2021(W)

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PETITIONERS:

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1 THOMAS PERUMANA, AGED 61 YEARS S/O. JOSEPH, PERUMANA HOUSE, VELLAYAMKUDI P. O., KATTAPPANA, IDUKKI TALUK AND DISTRICT – 685 515.

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2 LELAMMA THOMAS, AGED 57 YEARS W/O. THOMAS PERUMANA, PERUMANA HOUSE, VELLAYAMKUDI P. O., KATTAPPANA, IDUKKI TALUK AND DISTRICT – 685 515.

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BY ADVS. SRI. GEORGE MATHEW SRI. M. D. SASIKUMAR SRI. PRAVEEN S. SRI. SUNIL KUMAR A. G SRI. DIPU JAMES SHRI. GEORGE K. V ADV. STEPHY K REJI

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RESPONDENTS:

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1 THE KERALA STATE CO-OPERATIVE BANK LTD., HEAD OFFICE, COBANK TOWERS, NEAR CANTONMENT HOUSE, THIRUVANANTHAPURAM – 695 033, REPRESENTED BY ITS CHAIRMAN.

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2 THE KERALA STATE CO-OPERATIVE BANK LTD., IDUKKI, FORMERLY IDUKKI DISTRICT CO-OPERATIVE BANK LTD. NO.4334, IDUKKI, IDUKKI COLONY P. O – 685 602, THROUGH ITS AUTHORISED OFFICER.

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3 THE AUTHORISED OFFICER, THE KERALA STATE CO-OPERATIVE BANK LTD. IDUKKI, FORMERLY IDUKKI DISTRICT CO-OPERATIVE BANK LTD. NO.4334, IDUKKI, IDUKKI COLONY P. O – 685 602.

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WP(C).No.2782 OF 2021

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4 THE IDUKKI DISTRICT CO-OPERATIVE BANK LTD. NO.4334, IDUKKI COLONY P. O. - 685 602, THROUGH ITS GENERAL MANAGER.

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SRI. GILBERT GEORGE CORREYA - SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.2782 OF 2021

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JUDGMENT

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Dated this the 5th day of February 2021

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Heard both sides.

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Petitioners, by this petition are claiming the following reliefs:-

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“i) to call for the records which lead to the issuance of Exts.P2 and P3 and proceedings prior to it and to issue a writ in the nature of certiorari or any other appropriate writ, order or direction quashing the same;

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ii) to issue a writ in the nature of mandamus or any other appropriate writ, order or direction on the respondents to reschedule and regularise the petitioners' accounts mentioned in Ext.P1;

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iii) to issue an order staying all further proceedings pursuant Exts.P1, P2, P3 and further proceedings till the disposal of the above writ petition;

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iv) to grant such other reliefs as the Hon'ble Court may deem fit and proper in the nature and circumstances of the case.”

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Petitioners had availed financial assistance from

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the 4^th respondent Bank in the form of cash credit to the tune of Rs.40,00,000/-. Residential property of the petitioners

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WP(C).No.2782 OF 2021

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came to be offered as security.

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The learned counsel for the petitioners argued that

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because of global recession and its effect on financial scenario, for the reason beyond their control, petitioners could not repay the loan.

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The learned counsel for the petitioners submits that the petitioners will be in a position to pay Rs.5,00,000/by the end of the month and the balance amount in installments for clearing the dues of the Bank. With this it is prayed that directions may be given to the respondent Bank for regularisation of the dues of financial assessments.

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Learned counsel for the respondents argued that if the petitioners repays the amount in ten equated monthly installments, the respondents shall keep the SARFAESI action in abeyance. The learned counsel for the respondent Bank further contended that the due date of the financial assessments were already over on 29.06.2018 and as on 03.02.2021, outstanding amount is Rs.63,26,874/-. She submitted that the possession in pursuant to the steps taken by the secured creditor under the SARFAESI Act is to be

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WP(C).No.2782 OF 2021

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taken on 10^th February, 2021.

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I have considered the submissions so advanced.

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In this view of the fact that, the petition is disposed of with the following directions:-

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The petitioners to clear the entire outstanding amount in ten equated monthly installments commencing from 26.02.2021. If the petitioners continues to abide by this direction, the respondents shall not take the coercive action under the SARFAESI Act. In case of single default, respondents can continue with the coercive action initiated by them under the SARFAESI Act. Considering the facts and circumstances of the case, no further extension of time shall be granted for the petitioners to comply with this order.

Sd/-

A.M.BADAR JUDGE

SPR

WP(C).No.2782 OF 2021

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF PETITION IN M.C.NO.72 OF 2020 DATED 06.03.2020 OF CHIEF JUDICIAL MAGISTRATE'S COURT, THODUPUZHA. EXHIBIT P2 TRUE COPY OF NOTICE DATED 30.01.2021 ISSUED BY ADVOCATE COMMISSIONER TO 1ST PETITIONER. EXHIBIT P3 TRUE COPY OF NOTICE DATED 30.01.2021 ISSUED BY ADVOCATE COMMISSIONER TO 2ND PETITIONER.

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RESPONDENT'S/S EXHIBITS: NIL.

Thomas Perumana v. the Kerala State Co-Operative Bank Ltd.

Case brief

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Thomas Perumana v. the Kerala State Co-Operative Bank Ltd.

Case brief

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