Allowed

Alungal Chozhikutty Premanandan, v. Authorized Officer

Kerala HC1 Sept 2022WP(C)/18524/2022

Case brief

AI extract

What is this about?

Court allowed writ petition challenging SARFAESI proceedings. Directed financial institution to accept repayment of outstanding business loan in 12 equated monthly installments while keeping coercive proceedings in abeyance.

What did the court decide?

Direction to accept repayment of Rs.61,35,420/- with interest in 12 equated monthly installments; coercive proceedings kept in abeyance.

Alungal Chozhikutty Premanandan, Vs Authorized Officer — 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 GOPINATH P.

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THURSDAY, THE 1^ST DAY OF SEPTEMBER 2022 / 10 TH BHADRA, 1944

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WP(C) NO. 18524 OF 2022

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PETITIONERS:

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1 ALUNGAL CHOZHIKUTTY PREMANANDAN, AGED 68 YEARS, ALUNGAL HOUSE, MANATHALA, CHAVAKKAD P.O, THRICHUR- 680 506.

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2 ALUNGAL CHOZHIKUTTY VELAYUDHAN, ALUNGAL HOUSE, PALLATH LANE WEST, POOKUNNAM P.O, THRISSUR - 680 002. BY ADVS. R.K.ASHA A.J.ABHILASH A.MUHAMMED MUSTHAFA DHEERAJ P.P.

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RESPONDENTS:

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1 AUTHORIZED OFFICER, JIGNESH NETRARWALA, HDB FINANCIAL SERVICES LTD., ZENITH HOUSE, OPPOSITE TO RACE COURSE, MAHALAKSHMI, MUMBAI - 400 034. 2 HDB FINANCIAL SERVICES LTD., REPRESENTED BY ITS AUTHORIZED OFFICER, ZENITH HOUSE, OPPOSITE TO RACE COURSE, MAHALAKSHMI, MUMBAI - 400 034. ADV. PRADEESH CHACKO (SC)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.09.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 18524 OF 2022

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JUDGMENT

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Petitioners have approached this Court challenging proceedings under the SARFAESI Act which have been initiated by the respondent financial institution for recovery of the amounts due from the petitioners.

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It was submitted on behalf of the respondent financial institution that the petitioners committed default in repayment of a business loan and the outstanding amount is Rs.61,35,420/-(Rupees sixty one lakhs thirty five thousand four hundred and twenty only). It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent financial institution is willing to accept repayment of the outstanding amount in limited instalments.

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I have heard the learned counsel for the petitioners as well as the learned Standing Counsel for the respondents.

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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 petitioners can be granted an opportunity to repay the outstanding amount in 12 instalments.

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WP(C) NO. 18524 OF 2022

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Accor dingly, there will be a direction to the respondent financial institution to accept repayment of the entire outstanding amount of Rs.61,35,420/-(Rupees sixty one lakhs thirty five thousand four hundred and twenty only) along with any accrued interest, costs and charges charges from the petitioners on the following conditions:

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(i)The outstanding amount of Rs.61,35,420/-(Rupees sixty one lakhs thirty five thousand four hundred and twenty only) along with any accrued interest, costs and charges shall be repaid in 12 equated monthly instalments.

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(ii)The first instalment shall be paid on or before 16.09.2022 and the subsequent instalments shall be paid on or before the 16^th day of every succeeding month.

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(iii) In the event of default of any one instalment, the respondent financial institution shall be entitled to proceed in accordance with law.

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(iv) In order to enable the petitioners to repay the entire 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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WP(C) NO. 18524 OF 2022

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APPENDIX OF WP(C) 18524/2022

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PETITIONER EXHIBITS

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Exhibit	P1 A TRUE COPY OF THE LOAN ACCOUNT DETAILS PERTAINING TO ACCOUNT NO. 622178 AS ON 24.01.2022.
Exhibit	P2 A TRUE COPY OF THE NOTICE, DATED 24.02.2022 ISSUED UNDER S.13(2) OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002.
Exhibit	P3 A TRUE COPY OF THE STATUTORY OBJECTION DATED 20.04.2022 ISSUED UNDER S.13(3A) OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002.
Exhibit	P4 A TRUE COPY OF THE POSTAL RECEIPT ISSUED WHILE FORWARDING EXHIBIT P3 TO 1ST RESPONDENT.

Alungal Chozhikutty Premanandan, v. Authorized Officer

Case brief

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Alungal Chozhikutty Premanandan, v. Authorized Officer

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