Allowed

Shaji C. C. v. Irinjalakkuda Town Co-Operative Bank Ltd. NO.55

Kerala HC6 Oct 2022WP(C)/3739/2022

Case brief

AI extract

What is this about?

A writ petition challenging bank recovery proceedings under the SARFAESI Act. The Court ordered the bank to accept repayment of the overdue amount in 15 installments, keep coercive proceedings in abeyance, and regularize the account upon compliance.

What did the court decide?

Direction to the bank to accept repayment of Rs.8,93,156/- in 15 installments, keep coercive proceedings in abeyance, and regularize the loan account.

Shaji C. C. Vs Irinjalakkuda Town Co-Operative Bank Ltd… — 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 6^TH DAY OF OCTOBER 2022 / 14TH ASWINA, 1944

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WP(C) NO. 3739 OF 2022

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PETITIONER:

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SHAJI C. C, AGED 51 YEARS, S/O. CHATHUNNI, CHENTHURUTHY HOUSE, MALA P. O., PALLIPPURAM, THRISSUR - 680 732.

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BY ADV V.A.VINOD

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RESPONDENT:

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IRINJALAKKUDA TOWN CO-OPERATIVE BANK LTD. NO.55, REPRESENTED BY ITS AUTHORISED OFFICER, HEAD OFFICE, IRINJALAKKUDA, TRICHUR DISTRICT – 680732.

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BY ADV.DEVAPRASANTH P J

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 3739 OF 2022

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JUDGMENT

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The petitioner has approached this Court challenging proceedings under the SARFAESI Act which have been initiated by the bank for recovery of the amounts due from 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 instalments and to obtain regularisation 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.8,93,156/-(Rupees eight lakhs ninety three thousand one hundred and fifty six 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 petitioner 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 petitioner can be granted an opportunity to repay the overdue amount in 15 instalments and

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WP(C) NO. 3739 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.8,93,156/-(Rupees eight lakhs ninety three thousand one hundred and fifty six only) along with any accrued interest, costs and charges from the petitioner and regularise the loan account of the petitioner on the following conditions:

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i. The overdue amount of Rs.8,93,156/-(Rupees eight lakhs ninety three thousand one hundred and fifty six only) along with any accrued interest, costs and charges shall be repaid in 15 equated monthly instalments.

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ii. The first instalment shall be paid on or before 31.10.2022 and the subsequent instalments shall be paid on or before the last working day of every succeeding month.

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iii. Petitioner 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 petitioner 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. 3739 OF 2022

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APPENDIX OF WP(C) 3739/2022

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PETITIONER EXHIBITS

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Exhibit P1 THE TRUE COPY OF THE SALE NOTICE ISSUED BY THE RESPONDENT TO THE PETITIONER DATED 17.01.2022.

Shaji C. C. v. Irinjalakkuda Town Co-Operative Bank Ltd. NO.55

Case brief

What is this about?

What did the court decide?

Shaji C. C. v. Irinjalakkuda Town Co-Operative Bank Ltd. NO.55

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

Coram

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