Allowed

Guberalakshmi S. v. the Branch Manager

Kerala HC11 Feb 2022WP(C)/3278/2022

Case brief

AI extract

What is this about?

The Court disposed of a writ petition seeking regularisation of a defaulted bank loan. The petition, citing pandemic-induced financial constraints, was allowed with directions to repay overdue amounts in 12 equal monthly instalments commencing March 2022, contingent upon strict adherence to avoid loss of this benefit. Subsequent relief shall continue under standard loan terms. The petitioner loses

What did the court decide?

Petitioner permitted to regularise loan account by paying overdue amounts with interest and costs in twelve equal monthly instalments commencing 10.03.2022; failure to pay any single instalment result

Guberalakshmi S. Vs the Branch Manager — 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 SATHISH NINAN

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FRIDAY, THE 11^TH DAY OF FEBRUARY 2022 / 22ND MAGHA, 1943

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WP(C) NO. 3278 OF 2022

PETITIONER:

GUBERALAKSHMI S.

AGED 32 YEARS

W/O.SUBBARAJ V.V., THUNDIPPARAMBIL VEETTIL, VADUTHALA DESOM, VADUTHALA P.O., PIN - 682 023, CHERANELLUR VILLAGE, KANAYANNUR TALUK, ERNAKULAM DISTRICT.

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BY ADV S.R.SREEJITH

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RESPONDENTS:

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1 THE BRANCH MANAGER ERNAKULAM DISTRICT CO-OP BANK, PANCHALAM BRANCH, PIN - 682 012. 2 THE AUTHORISED OFFICER ERNAKULAM DISTRICT CO.OP BANK, PB NO.4, KAKKANAD, PIN - 682 030.

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BY ADV SRI.N.RAGHURAJ, SC, ERNAKULAM DISTRICT CO-OPERATIVE BANK LTD.

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G.P SRI SHAMEER. P.M

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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SATHISH NINAN, J.

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= = = = = = = = = = = = = = = = = = W.P.(C) No.3278 of 2022

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= = = = = = = = = = = = = = = = = = Dated this the 11^th day of February, 2022

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J U D G M E N T

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Repayment of the credit facility availed by the

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petitioner from the respondent Bank was defaulted. Thereupon the Bank initiated recovery proceedings. Petitioner has approached this Court seeking for regularisation of the loan.

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Heard the learned counsel for the petitioner and

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the learned Standing Counsel for the Bank.

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In the wake of Covid-19 pandemic, the business became very grim, thus resulting in grave financial constraints and the consequential default in repayment, submits the petitioner. The petitioner prays that he may be permitted to pay the outstanding overdue amounts in reasonable instalments and to have the account regularised.

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Learned Standing Counsel for the Bank submits that further term is available for the facility and that

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W.P.(C) No.3278 of 2022

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-: 2 :-

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the Bank is not averse to regularisation provided, the interests of the Bank is safeguarded.

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Considering the entire facts and circumstances,

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the Writ Petition is disposed of with the following directions:-

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(i) The petitioner shall be permitted to have the loan account in question regularised on payment of the over due amounts, with interest and costs, in twelve equal monthly instalments commencing from 10.03.2022. The subsequent instalments shall be payable on or before the 10^th day of the succeeding months.

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(ii) The instalments in respect of the overdues, as above, shall be payable along with the regular EMIs payable per month.

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(iii) In case of default in payment of a single instalment of the overdue amounts or the regular EMI payable till the satisfaction of the over dues, the petitioner will lose the benefit granted under this judgment.

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W.P.(C) No.3278 of 2022

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(iv) On the account being regularised on

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satisfaction of the over due amounts, the parties shall thereafter continue to be bound by the terms of the loan

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arrangement.

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Sd/- SATHISH NINAN JUDGE

kns/-

//True Copy//

P.S. to Judge

APPENDIX OF WP(C) 3278/2022

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PETITIONER EXHIBITS

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Exhibit P1 TRUE COPY OF THE RECOVERY NOTICE DATED 07/01/2022 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER.

Guberalakshmi S. v. the Branch Manager

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Guberalakshmi S. v. the Branch Manager

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