Allowed

Latheesh E.N v. Esaf Small Finance Bank Limited

Kerala HC11 Oct 2022WP(C)/11964/2022

Case brief

AI extract

What is this about?

In this writ petition challenging SARFAESI proceedings, the High Court directed the bank to accept repayment of the overdue amount in 10 installments and regularize the loan account upon full discharge, staying coercive proceedings.

What did the court decide?

Direction to bank to accept repayment in 10 installments, regularize the loan account, and keep coercive proceedings in abeyance.

Latheesh E.N Vs Esaf Small Finance Bank Limited — Service and Employment | Kerala HC (2022)

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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 GOPINATH P.

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TUESDAY, THE 11TH DAY OF OCTOBER 2022 / 19TH ASWINA, 1944
WP(C) NO. 11964 OF 2022

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PETITIONER:

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LATHEESH E.N
AGED 35 YEARS
EDATHOTTY HOUSE, KODANAD, KUNNATHUNADU,
ERNAKULAM, KERALA – 683 544.
BY ADV S.MUMTAZ

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RESPONDENT:

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ESAF SMALL FINANCE BANK LIMITED
BUILDING NO. VII.83/8, ESAF BHAVAN,
MANNUTHY, THRISSUR – 680 651
REPRESENTED BY AUTHORISED OFFICER.

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BY ADV B.S.SURESH KUMAR

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
11.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 11964 OF 2022 2

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JUDGMENT

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Petitioner has approached this Court challenging proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) for recovery of the amounts due upon a loan availed by the petitioner.

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During the course of hearing, petitioner has confined the relief to an opportunity for repaying the overdue amount in installments and to obtain regularization of the loan account.

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It was submitted on behalf of the respondent bank that the petitioner committed default in repayment and the overdue amount is Rs.5,08,660/- (Rupees Five Lakhs Eight Thousand Six Hundred and Sixty Only). It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the overdue amount in limited installments and regularize the loan account.

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I have heard Adv.S.Mumtaz, the learned counsel for the petitioner as well as Adv.B.S.Suresh Kumar, the learned counsel for the respondent.

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WP(C) NO. 11964 OF 2022 3

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Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the overdue amount in 10 (Ten) installments and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularized.

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Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.5,08,660/- (Rupees Five Lakhs Eight Thousand Six Hundred and Sixty Only) along with bank charges from the petitioner and regularize the loan account of the petitioner on the following conditions:

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(i) The overdue amount of Rs.5,08,660/- (Rupees Five Lakhs Eight Thousand Six Hundred and Sixty Only) shall be repaid in 10 equated monthly installments along with any accrued interest and costs;

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(ii) The first installment shall be paid on or before 31-10-2022. The subsequent installments shall be paid on or before the last working day of the succeeding months;

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(iii) Petitioner shall continue to pay the regular EMI’s along with the installments as directed above;

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WP(C) NO. 11964 OF 2022 4

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(iv) In the event of default of any one installment, the respondent bank shall be entitled to proceed in accordance with law.

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(v) In order to enable the petitioner to repay the entire

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amounts, all coercive proceedings shall be kept in abeyance.

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The writ petition is disposed of as above.

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Sd/GOPINATH P. JUDGE

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ats

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WP(C) NO. 11964 OF 2022 5

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APPENDIX OF WP(C) 11964/2022

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PETITIONER EXHIBITS

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Exhibit P1TRUE COPY OF POSSESSION NOTICE DATED 16.03.2022
ISSUED BY THE RESPONDENT TO THE PETITIONER.

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Exhibit P2TRUE COPY OF REQUEST DATED 25.03.2022 MADE BY THE
PETITIONER TO THE RESPONDENT.

Latheesh E.N v. Esaf Small Finance Bank Limited

Case brief

What is this about?

What did the court decide?

Latheesh E.N v. Esaf Small Finance Bank Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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