Disposed

Sikal.S.K. v. the Authorised Officer

Kerala HC23 Mar 2021WP(C)/7171/2021

Case brief

AI extract

What is this about?

The court disposed of a writ petition challenging coercive action under the SARFAESI Act. It directed the petitioner to pay Rs. 2.5 lakhs immediately and balance dues over ten months. Upon compliance, the bank was restrained from further anticipatory action under SARFAESI Act for 10 months, with liberty to resume action upon default.

What did the court decide?

Petitioner directed to pay Rs. 2,50,000 immediately and balance overdue in 10 monthly instalments; SARFAESI action to be kept in abeyance upon compliance with one default condition.

Sikal.S.K. 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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TUESDAY, THE 23RD DAY OF MARCH 2021 / 2ND CHAITHRA, 1943

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WP(C).No.7171 OF 2021(V)

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PETITIONER/S:

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SIKAL.S.K.,AGED 31 YEARS S/O. SASI, SAKAL NILAYAM, KAKKAMOOLA, KALLIYOOR P.O, THIRUVANANTHAPURAM DISTRICT

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BY ADVS. SRI.SHAJIN S.HAMEED SHRI.MELWIN BYJU

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RESPONDENT/S:

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THE AUTHORISED OFFICER,GENERAL MANAGER IN CHARGE, THE TRIVANDRUM CO-OPEERATIVE URBAN BANK LTD NO. 1959 HEAD OFFICE, P.B NO. 115, M.G ROAD, THIRUVANANTHAPURAM DISTRICT, PIN CODE 695 001

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SMT.NISHA GEORGE, STANDING COUNSEL

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.03.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.7171 OF 2021 2

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JUDGMENT

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Dated this the 23rd day of March 2021

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Heard both sides.

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The petitioner had availed a loan of Rs.20,00,000/- (Rupees twenty lakhs only) for a period of 120 months and term of that loan was upto 2028. The petitioner could not repay the instalments of the loan. According to the learned counsel for the petitioner, because of Covid-19 pandemic, there is default in repayment of the loan amount.

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Learned counsel appearing for the petitioner further submits that the petitioner is willing to get the loan regularised by paying the overdue amount in instalments.

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Learned Standing Counsel appearing for the respondent bank pointed out that the loan became Non Performing Asset way back on 10.04.2019. As on 19.03.2021, closure amount of the loan is Rs.23,58,142/- (Rupees twenty three lakhs fifty eight thousand one hundred and forty two only) and overdue amount is about Rs.8,24,818/(Rupees eight lakhs twenty four thousand eight hundred and eighteen only). In submission of the learned Standing Counsel for the respondent, the auction of the secured asset is scheduled to be held today and the respondents are willing to grant an opportunity to the petitioner to regularise the loan, if the petitioner pays an amount of Rs.3,00,000/- (Rupees three lakhs only) by today and remaining overdue amount in ten equated monthly instalments.

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WP(C).No.7171 OF 2021 3

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In the light of the foregoing submissions, the writ petition is disposed of with the following directions:-

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The petitioner is directed to pay an amount of Rs.2,50,000/(Rupees two lakhs and fifty thousand only) towards discharge of the his liability towards the overdue amount by tomorrow (i.e, on 24.03.2021). The petitioner to pay the balance overdue amount with interest and incidental charges in ten equated successive monthly instalments commencing from 19.04.2021. In addition, the petitioner should also pay EMIs regularly. If the petitioner complies with these directions, respondent shall keep the coercive action, initiated against the petitioner under the SARFAESI Act, in abeyance. In case of a single default, the respondent is at liberty to continue the action under the SARFAESI Act initiated against the petitioner. No further extension of time for compliance of this direction shall be granted to the petitioner.

Sd/-

A.M.BADAR

JUDGE

ajt

WP(C).No.7171 OF 2021 4

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 PHOTOCOPY OF THE DEMAND NOTICE DATED 26-02-2020 ISSUED BY THE RESPONDENT BANK

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EXHIBIT P2 PHOTOCOPY OF THE ORDER DATED 22-01-2021 IN M.C NO. 788/2020 OF THE CHIEF JUDICIAL MAGISTRATE COURT, THIRUVANANTHAPURAM EXHIBIT P3 PHOTOCOPY OF THE NOTICE DATED 02-03-2021 ISSUED BY THE ADVOCATE COMMISSIONER.

Sikal.S.K. v. the Authorised Officer

Case brief

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What did the court decide?

Sikal.S.K. v. the Authorised Officer

Case brief

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