Partly allowed

K.v.Shaji v. Pazhangad Fishermen Development Welfare Co-Operative Society Ltd. No. Df(E). 118/92

Kerala HC3 Aug 2022WP(C)/15412/2022

Case brief

AI extract

What is this about?

In this writ petition, the petitioner challenged a demand notice issued for loan default, citing COVID-19 and weather impacts. The Court stayed the recovery proceedings conditionally, directing the petitioner to pay a substantial upfront sum followed by equated monthly installments.

What did the court decide?

Petitioner directed to pay Rs. 1,00,000/- by 05.09.2022, balance in 10 equated monthly installments due by 15th of each succeeding month; recovery proceedings stayed pending strict compliance.

K.v.Shaji Vs Pazhangad Fishermen Development Welfare… — Banking and Recovery | 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 V.G.ARUN

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WEDNESDAY, THE 3^RD DAY OF AUGUST 2022 / 12TH SRAVANA, 1944 WP(C) NO. 15412 OF 2022

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PETITIONER/S:

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K.V.SHAJI AGED 46 YEARS S/O. VASU, KALATHIL HOUSE, S.M ROAD, EDAVANAKKAD P.O, ERNAKULAM DISTRICT, KERALA 682502 BY ADVS. V.MAHENDRANATH P.T.SHEEJISH ASHA VARGHESE

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RESPONDENT/S:

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1 PAZHANGAD FISHERMEN DEVELOPMENT WELFARE COOPERATIVE SOCIETY LTD NO. DF(E). 118/92 EDAVANAKKAD P.O, ERNAKULAM , KERALA 682502 REPRESENTED BY THE SECRETARY 2 THE KERALA STATE FISHERMEN DEBT RELIEF COMMISSION T.C 11/683-1 AND 29 THIRUVANANTHAPURAM , KERALA 695 033 BY ADVS. ABDUL RASHEED K I DEEPA SASIDHARAN(K/000119/2018)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C) No.15412 of 2022

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JUDGMENT

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Dated this the 3^rd day of August, 2022

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The petitioner, along with certain others, had availed a loan from the first respondent

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Bank, pledging his residential property as security. According to the petitioner, after the onset of Covid-19 and by reason of inclement weather conditions, the fishing activity, which is the only avocation known to the petitioner, suffered huge set back. This resulted in the loan being defaulted. Consequently, recovery

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proceedings have been initiated, as evidenced by Ext.P2 demand notice.

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Learned Counsel for the petitioner

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submitted that the petitioner has submitted

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Ext.P3 request before the second respondent, seeking the benefit of various loan waiver

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schemes formulated by the Government. It is

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requested that till such time as the second

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W.P.(C) No.15412 of 2022

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respondent takes a decision on Ext.P3, further proceedings based on Ext.P2 may kept in abeyance.

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Learned Counsel appearing for the first respondent stoutly opposed the prayer, pointing out that the petitioner is not a fisherman in distress, as is attempted to be made out. Reference is made to paragraphs 3 and 4 of the statement of the first respondent, extracted hereunder'

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“3. It is submitted that in the year 2017 the petitioner along with 12 others purchased a fishing craft and its accessories for which the Society advanced an amount of Rs. 21,99,892/- on the security as also the personal guaranty of the purchasers. It is not correct that the petitioner pledged his residential property for obtaining the loan. The EMI payable was Rs. 47,000/-. However, after paying an amount of Rs. 6,39,500/ the petitioner defaulted, even though, he was earning a substantial amount by conducting fishing operations. It is absolutely incorrect that the deployment of the boat, ended in loss and the petitioner and other had to take up other jobs. It is the one of

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W.P.(C) No.15412 of 2022

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the conditions that 1.5% of the auctioned amount is to be paid to the Society as its service charge for which the Society is maintaining proper accounts. During the year 2019 to 2021, the petitioner had a collection of Rs. 2,93,83,320/- which is visible by the account maintained by the Society,

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4. It is submitted that since September 2021, the petitioner defaulted the payment of EMI and as on the month of April 2022, an amount Rs. 11,25,000/- fell due in his loan account. It is in the said circumstances Ext.P2 demand notice issued to the petitioner and 12 others for recovering the amount due to the Society. It is submitted that Ext.P2 notice has been issued as there is no other method to recover the amount and the Society is bound proceed against the petitioner in accordance with the law. Hence, there is no illegality in issuing Ext.P2 demand notice to the petitioner.”

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It is submitted that the only leniency that can

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be shown is to permit repayment in instalments, that too, if the petitioner pays a substantial amount upfront.

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Having heard the learned Counsel on

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W.P.(C) No.15412 of 2022

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either side, I find substantial merit in the objection raised by the first respondent. At the same time, as the petitioner has approached the second respondent seeking relief, his application is liable to be considered.

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In the result, the writ petition is disposed of as under;

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(i) The petitioner shall pay an amount of Rs.1,00,000/- within 05.09.2022. The balance amount shall be paid in 10 equated monthly instalments

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(ii) The first of such installment shall be paid on or before 15.09.2022 and the rest of the installments, before the 15^th day of each succeeding month.

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installments will result in the benefit granted under this judgment being withdrawn and the Bank being at liberty to continue the sale proceedings.

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W.P.(C) No.15412 of 2022

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abeyance.

petitioner.

(vi) The orders, as directed above, shall be passed within two months of receipt of a copy of this judgment. The balance amount payable by the petitioner after passing the order will be governed by the terms of that order.

Sd/-

V.G.ARUN JUDGE

Scl/

W.P.(C) No.15412 of 2022

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APPENDIX OF WP(C) 15412/2022

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PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE 1ST PAGE OF THE BOOK OF THE KERALA FISHERMEN WELFARE FUND BOARD IN RESPECT OF THE PETITIONER AND FAMILY MEMBERS Exhibit P2 THE TRUE COPY OF THE DEMAND NOTICE SERVED BY THE 1ST RESPONDENT ON THE PETITIONER. Exhibit P3 TRUE COPY OF THE RELIEF APPLICATION DATED 11-04-2022 FILED BY THE PETITIONER BEFORE THE KERALA STATE FISHERMEN DEBIT RELIEF COMMISSION.

K.v.Shaji v. Pazhangad Fishermen Development Welfare Co-Operative Society Ltd. No. Df(E). 118/92

Case brief

What is this about?

What did the court decide?

K.v.Shaji v. Pazhangad Fishermen Development Welfare Co-Operative Society Ltd. No. Df(E). 118/92

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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