Disposed

Venu.R, v. Vaikom Urban Co-Operative Bank Limited

Kerala HC12 Oct 2022WP(C)/285/2022

Case brief

AI extract

What is this about?

In this writ petition challenging SARFAESI Act proceedings, the Kerala High Court directed the respondent Bank to accept repayment of the overdue loan amount in six equated monthly installments and regularize the account, keeping coercive proceedings in abeyance during this tenure.

What did the court decide?

Direction to the Bank to accept repayment in six installments and regularize the loan account; coercive proceedings in abeyance.

Venu.R, Vs Vaikom Urban Co-Operative Bank… — Contract and Commercial Disputes | 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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WEDNESDAY, THE 12^TH DAY OF OCTOBER 2022 / 20TH ASWINA, 1944

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WP(C) NO. 285 OF 2022

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PETITIONERS:

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1 VENU.R, AGED 60 YEARS S/O. RAMAN, VISHNU NIVAS, THEKKE NADA, VAIKOM P.O, KOTTAYAM DISTRICT, PIN - 686 141.

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2 KUMARI THANKAM, W/O. VENU R., VISHNU NIVAS, THEKKE NADA, VAIKOM P.O, KOTTAYAM DISTRICT, PIN - 686 141.

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BY ADV N.M.VARGHESE

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RESPONDENT:

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VAIKOM URBAN CO-OPERATIVE BANK LIMITED, HEAD OFFICE, VAIKOM, REPRESENTED BY ITS AUTHORIZED OFFICER-686 141.

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BY ADV J.JULIAN XAVIER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 285 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 Bank for recovery of the amounts due from the petitioners.

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During the course of hearing, petitioners have confined the relief to an opportunity for repaying the overdue amount in instalments and to obtain regularisation of the loan account.

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It was submitted on behalf of the respondent Bank that the petitioners committed default in repayment of a loan taken for the purpose of marriage of their daughter and the overdue amount is Rs.12,65,971/-(Rupees twelve lakhs sixty five thousand nine hundred and seventy one 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 instalments and regularise the loan account.

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I have heard the learned counsel for the petitioners as well as the learned counsel for the respondent.

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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 overdue amount in six instalments and

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WP(C) NO. 285 OF 2022

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thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.

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Accordingly, there will be a direction to the respondent Bank to accept repayment of the entire overdue amount of Rs.12,65,971/(Rupees twelve lakhs sixty five thousand nine hundred and seventy one only) a long with any accrued interest, costs and charges from the petitioners and regularise the loan account of the petitioners on the following conditions:

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i. The overdue amount of Rs.12,65,971/-(Rupees twelve lakhs sixty five thousand nine hundred and seventy one only) along with any accrued interest, costs and charges shall be repaid in six equated monthly instalments.

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ii. The first instalment shall be paid on or before 30.11.2022 and the subsequent instalments shall be paid on or before the last working day of every succeeding month.

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iii. Petitioners shall continue to pay the regular EMI’s along with the instalments directed above.

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iv. In the event of default of any one instalment, the respondent Bank shall be entitled to proceed in accordance with law.

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v. 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. 285 OF 2022

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APPENDIX OF WP(C) 285/2022

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PETITIONER EXHIBITS Exhibit P1 A PHOTOCOPY OF NOTICE NO. 357 ISSUED TO THE PETITIONERS BY THE RESPONDENT ON 23.07.2021. Exhibit P2 A PHOTOCOPY OF NOTICE ISSUED BY THE COMMISSIONER ADVOCATE FOR TAKING OVER OF POSSESSION IN PROCEEDINGS IN M.C NO. 198/2021 BEFORE THE CHIEF JUDICIAL MAGISTRATE COURT, KOTTAYAM.

Venu.R, v. Vaikom Urban Co-Operative Bank Limited

Case brief

What is this about?

What did the court decide?

Venu.R, v. Vaikom Urban Co-Operative Bank Limited

Case brief

What is this about?

What did the court decide?

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