Allowed

Johnson D, v. Kerala State Co-Operative Bank

Kerala HC11 Oct 2022WP(C)/5566/2022

Case brief

AI extract

What is this about?

The Court granted the petitioners an opportunity to repay loan defaults through instalments for two accounts totaling approximately Rs. 20 lakhs, directed the respondent bank to regularize the accounts upon payment, and stayed coercive proceedings.

What did the court decide?

Petitioners granted opportunity to repay dues in 20 and 3 monthly instalments; Bank directed to regularize accounts; coercive proceedings stayed.

Johnson D, Vs Kerala State 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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TUESDAY, THE 11^TH DAY OF OCTOBER 2022 / 19TH ASWINA, 1944

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WP(C) NO. 5566 OF 2022

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PETITIONERS:

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1 JOHNSON D, AGED 43 YEARS, S/O. THANKACHAN, VAYALIRAKKATHU, PUTHANVEEDU, MANJAMONKALA, VILLAKUDY VILLAGE, PUNALUR, VALACODE, VILAKKUVATTOM KOLLAM DISTRICT-691 305.

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2 OMANA SOLAMAN, AGED 60 YEARS, VAYILIRAKKATHU PUTHEN VEEDU, SASTHAMKONAM, PUNALUR P.O, VALACODE (PART), VILAKKUVATTOM KOLLAM DISTRICT-691 305. BY ADVS. SHEEN JOSE P.V.SARITHA VENUGOPAL BASIL MATHEW

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RESPONDENTS:

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1 KERALA STATE CO-OPERATIVE BANK, POPULARILY KNOWN AS KERALA BANK (ERSTWHILE DISTRICT COOPERATIVE BANK LTD, KOLLAM) REP.BY ITS AUTHORIZED OFFICER, REGIONAL OFFICE, THIRUVANANTHAPURAM, P.B.NO.5122, EAST FORT, FORT P.O, THIRUVANANTHAPURAM - 695 023.

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2 THE BRANCH MANAGER, KERALA STATE COOPERATIVE BANK, POPULARILY KNOWN AS KERALA BANK (ERSTWHILE DISTRICT CO-OPERATIVE BANK LTD, KOLLAM) KUNNIKODE BRANCH, PUNNALLOOR, KOLLAM - 691 508. BY ADV P.C.SASIDHARAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 5566 OF 2022

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JUDGMENT

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The petitioners availed two ordinary loans from the respondent Bank and on committing default in payment of the liabilities, the Bank initiated proceedings under the SARFAESI Act and petitioners are before this Court challenging the same.

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The learned counsel appearing for the respondent Bank, on instructions, would submits that in respect of loan account No.030296025020004 (1^st loan account), the outstanding amount as on 30.09.2022 is Rs.37,849/-. It is submitted that the overdue amount in respect of loan having account No.039296025020101 (2^nd loan account) as on 31.08.2022 is Rs.19,55,910/-. It is submitted by the learned counsel for the respondent Bank that in respect of the 1^st loan account, the term has already expired and the said loan account cannot be regularized by paying the overdue amount. In respect of the 2^nd loan account, the account can be regularized on the petitioners remitting the overdue amount and continuing to pay the regular instalments.

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During the course of hearing, the petitioners have confined the relief to an opportunity for repaying the overdue amount in respect of the 2^nd loan account of Rs.19,55,910/- in

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WP(C) NO. 5566 OF 2022

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instalments and to obtain regularisation of the said loan account and for an opportunity to repay the total outstanding amount of Rs.37,849/- in respect of the 1^st loan account, in instalments.

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It was submitted on behalf of the respondent Bank that the petitioners committed default in repayment of the loans. 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 respect of the 2^nd loan account in limited instalments and regularise the same and is also willing to accept repayment of the outstanding amount in respect of the 1^st loan account in limited instalments.

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I have heard the learned counsel for the petitioners as well as the learned 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 overdue amount of Rs.19,55,910/- in respect of the 2^nd loan account in 20 instalments and if the amount so directed is paid within the time as directed above, to have the said loan account regularised. The petitioners can also be granted an opportunity

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WP(C) NO. 5566 OF 2022

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to repay the outstanding amount of Rs.37,849/- in respect of the 1^st loan account in 3 equal monthly instalments.

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Accordingly, there will be a direction to the respondent Bank to accept repayment of the overdue amount of Rs.19,55,910/- (Rupees nineteen lakhs fifty five thousand nine hundred and ten only) in respect of the 2^nd loan account along with accrued interest and bank charges from the petitioners and regularise the said loan account of the petitioners and to accept repayment of the outstanding amount of Rs.37,849/- (Rupees thirty seven thousand eight hundred and forty nine only) in respect of the 1^st loan account along with accrued interest and bank charges from the petitioners on the following conditions:

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i. The petitioners shall pay the overdue amount in the 2 nd loan account of Rs.19,55,910/- (Rupees nineteen lakhs fifty five thousand nine hundred and ten only) along with any accrued interest, costs and charges in 20 equated monthly instalments. The first instalment shall be paid on or before 07.11.2022 and the subsequent instalments shall be paid on or before the 10 th day of every succeeding months. The petitioners shall continue to pay the regular EMI’s along with the instalments directed above.

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ii. The petitioners shall pay the outstanding amount of Rs.37,849/- (Rupees thirty seven thousand eight hundred and forty nine only) in respect of 1 st loan account along with any accrued interest, costs and charges in three equated monthly instalments. The first instalment shall be paid on or before 07.11.2022 and the subsequent instalments shall be paid on or before the 10 th day of every succeeding months .

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WP(C) NO. 5566 OF 2022

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iii. 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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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. 5566 OF 2022

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APPENDIX OF WP(C) 5566/2022

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PETITIONER EXHIBITS

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Exhibit P1 TRUE COPY OF THE LAND TAX RECEIPT DATED 16.07.2021. Exhibit P2 TRUE COPY OF THE DISCHARGE SUMMARY AND MEDICAL CERTIFICATE FROM DEPARTMENT OF CARDIOLOGY, LOTUS HEART HOSPITAL, KOLLAM DATED 01.06.2017. Exhibit P2(a) TRUE COPY OF THE DISCHARGE SUMMARY AND MEDICAL CERTIFICATE FROM SREE CHITHRA TRIBUNAL HOSPITAL, THIRUVANANTHAPURAM DATED 12.11.2021. Exhibit P3 TRUE COPY OF THE DEMAND NOTICE DATED 02.01.2021. Exhibit P4 TRUE COPY OF THE REQUEST TO A BANK DATED 02.02.2022. Exhibit P5 TRUE COPY OF THE NOTICE DATED 04.02.2022 UNDER SEC. 13(4) OF SARFAESI ACT. Exhibit P6 TRUE COPY OF THE RECEIPT DATED 09.02.2022.

Johnson D, v. Kerala State Co-Operative Bank

Case brief

What is this about?

What did the court decide?

Johnson D, v. Kerala State Co-Operative Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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