Allowed

Ramachandran K. v. the Authorised Officer (Asst. General Manager), Union Bank of India

Kerala HC10 Oct 2022WP(C)/5642/2022

Case brief

AI extract

What is this about?

High Court allowed the petitioner to repay a debt of Rs.20,28,085 with interest in twenty equal monthly instalments, ordered the bank to accept this arrangement, and kept coercive proceedings in abeyance. Default permits resumption of legal action.

What did the court decide?

Direction to accept repayment of Rs.20,28,085 with interest in 20 instalments; coercive proceedings kept in abeyance. Default allows resumption of recovery law.

Ramachandran K. Vs the Authorised Officer… — 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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MONDAY, THE 10TH DAY OF OCTOBER 2022 / 18TH ASWINA, 1944

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WP(C) NO. 5642 OF 2022

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PETITIONER:

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RAMACHANDRAN K.,
AGED 52 YEARS,
S/O. P.R.S.MENON, KUNNATHULLY HOUSE, PALUVAI P.O.,
CHAVAKKAD, THRISSUR, PIN-680 522

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BY ADV M.RETHEESHKUMAR

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RESPONDENTS:

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1 THE AUTHORISED OFFICER (ASST. GENERAL MANAGER), UNION BANK OF INDIA, REGIONAL OFFICE, ERNAKULAM RURAL, NEAR KSRTC BUS STATION, GOVT.HOSPITAL ROAD, ALUVA, ERNAKULAM DISTRICT, PIN-683 101

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2 UNION BANK OF INDIA, GURUVAYUR BRANCH, GURUVAYUR, THRISSUR DISTRICT, PIN-680 101, REPRESENTED BY IS BRANCH MANAGER

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BY ADVS.
SADCHITH.P.KURUP
C.P.ANIL RAJ
ASP.KURUP

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
10.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P(C) No.5642/2022 -2-

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JUDGMENT

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The petitioner has filed this writ petition being aggrieved by the proceedings initiated by the respondent Bank under provisions of the SARFAESI Act to recover amounts due from the petitioner. Petitioner availed a cash credit facility from the respondent Bank and committed default in repayment of the amount due to the Bank.

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The learned counsel appearing for the petitioner submits that this Court by interim order dated 18.02.2022 had directed the petitioner to deposit a sum of Rs.5,00,000/on or before 15.03.2022. It is submitted that the petitioner had paid a sum of Rs.2,00,000/- on 08.03.2022 and the Bank also received an amount of Rs.3,16,290/- on account of assignment of certain LIC policies. It is submitted that the petitioner has therefore, complied with the interim order and the petitioner will be given a reasonable opportunity to clear the balance amount due in instalments.

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The learned counsel appearing for the respondent Bank submits that the petitioner is not entitled to any relief.

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W.P(C) No.5642/2022 -3-

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It is submitted that the petitioner did not comply the terms of the interim order. He submitted that the petitioner had availed another loan from the respondent Bank and on assignment of the LIC policies that loan was closed in full and the balance amount available was credited to the cash credit account. It is submitted that after adjusting that payment and the amount of Rs.2,00,000/- paid by the petitioner, the present outstanding is Rs.20,28,085/-. It is submitted that apart from granting some instalments no other indulgence can be shown to the petitioner. It is submitted that though the petitioner approached the Debts Recovery Tribunal by filing a securitization application, no interim order was granted by the Tribunal.

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Learned counsel appearing for the petitioner states that the petitioner will make every endeavour to clear the liability in instalments. It is submitted that considering the amount now stated to be due, atleast twenty (20) instalments may be granted. The learned counsel for the petitioner also states that the petitioner is willing to withdraw S.A. No.441/2022 now pending before the Debts Recovery Tribunal-II, Ernakulam and as also all contentions

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W.P(C) No.5642/2022 -4-

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raised therein.

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Having heard learned counsel for the petitioner and learned counsel for the respondent Bank.

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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 outstanding amount in twenty (20) equal monthly instalments.

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Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.20,28,085/- along with accrued interest and bank charges from the petitioner on the following conditions:

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(i) The outstanding amount of Rs.20,28,085/together with any accrued interest and bank charges/costs shall be repaid in twenty (20) equated monthly instalments.

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(ii) The first instalment shall be paid on or before 25.11.2022 and subsequent instalments shall be

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W.P(C) No.5642/2022 -5-

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paid on or before 25^th day of every succeeding month.

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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 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/-

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GOPINATH P. JUDGE

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W.P(C) No.5642/2022 -6-

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APPENDIX OF WP(C) 5642/2022

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PETITIONER EXHIBITS

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Exhibit P1A TRUE COPY OF THE NOTICE DATED
17.09.2021 U/S 13 (2) OF SARFAESI ACT
ISSUED BY THE 1ST RESPONDENT
Exhibit P2TRUE COPY OF THE SCREEN SHOTS OF THE
WHATSAPP COMMUNICATION DATED 02.11.2021
BETWEEN THE PETITIONER AND THE 2ND
RESPONDENT
Exhibit P3TRUE COPY OF THE SCREEN SHOTS OF THE
WHATSAPP COMMUNICATION DATED 11.11.2021
BETWEEN THE PETITIONER AND THE 2ND
RESPONDENT
Exhibit P4TRUE COPY OF THE FORM OF ASSIGNMENT WITH
INSTRUCTIONS SEND THROUGH WHATSAPP BY THE
2ND RESPONDENT
Exhibit P5TRUE COPY OF THE ASSIGNMENT QUESTIONNAIRE
AND DECLARATION OF LIC OF INDIA SEND
THROUGH WHATSAPP BY THE 2ND RESPONDENT
Exhibit P6TRUE COPY OF THE REPRESENTATION SUBMITTED
BY THE PETITIONER DATED 17.02.2022 TO THE
2ND RESPONDENT
Exhibit P7A TRUE COPY OF THE PRINT OUTS OF THE
EMAIL FORWARDED BY THE PETITIONER TO THE
COUNSEL DATED 9.2.2022

Ramachandran K. v. the Authorised Officer (Asst. General Manager), Union Bank of India

Case brief

What is this about?

What did the court decide?

Ramachandran K. v. the Authorised Officer (Asst. General Manager), Union Bank of India

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

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