Disposed

Shylesh K. v. the Authorized Officer, Kerala State Co-Operative Bank Ltd.

Kerala HC4 Jan 2022WP(C)/67/2022

Case brief

AI extract

What is this about?

The High Court of Kerala, in a writ petition filed by loan defaulters, directed the bank to accept repayment of the overdue amount in 13 instalments. The court ordered the suspension of coercive proceedings if the payment terms were strictly adhered to, granting the petitioners a chance to regularise their loan account.

What did the court decide?

Direction to the respondent bank to accept repayment of the overdue amount in 13 instalments with suspension of coercive proceedings.

Shylesh K. Vs the Authorized Officer, Kerala State… — 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 BECHU KURIAN THOMAS

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TUESDAY, THE 4^TH DAY OF JANUARY 2022 / 14TH POUSHA, 1943

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W.P.(C) NO.67 OF 2022

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PETITIONERS:

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1 SHYLESH K., AGED 43 YEARS, S/O. MUKUNDAN, KAMABANIKUNNUMMAL HOUSE, KARIYAD SOUTH, PERINGATHOOR, KANNUR DISTRICT.

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2 V.MUKUNDAN, AGED 75 YEARS, S/O. KANNAN, KAMABANIKUNNUMMAL HOUSE, KARIYAD SOUTH, PERINGATHOOR, KANNUR DISTRICT.

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3 NALINI C.K., AGED 68 YEARS, W/O. MUKUNDAN, KAMABANIKUNNUMMAL HOUSE, KARIYAD SOUTH, PERINGATHOOR, KANNUR DISTRICT.

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BY ADV VISHNUPRASAD NAIR

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RESPONDENTS:

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1 THE AUTHORIZED OFFICER, KERALA STATE CO-OPERATIVE BANK LTD., KANNUR REGIONAL OFFICE, KANNUR-670 001.

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2 TEH KERALA STATE CO-OPERATIVE BANK LTD., PERINGATHUR EVENING BRANCH, THALASSERY, KANNUR DISTRICT, REPRESENTED BY ITS BRANCH MANAGER.

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ADV.M.SASINDRAN, STANDING COUNSEL

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C) NO.67 OF 2022

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JUDGMENT

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The 1^st petitioner as borrower from the respondent-Bank, has committed default in repayment. Consequently, proceedings have been initiated by the Bank for recovery of the amounts due.

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During the course of the 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 1^st petitioner committed default in repayment and the overdue amount is Rs.5,43,982/-. 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 Adv.Vishnuprasad Nair, the learned

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counsel for the petitioners as well as Adv. M. Sasindran, the

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learned Standing Counsel for the respondents.

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Having regard to the circumstances of the case and the

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W.P.(C) NO.67 OF 2022

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situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioners can be

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granted an opportunity to repay the overdue amount in '13' instalments and 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.5,43,982/- along with bank charges from the 1^st petitioner and to regularise the loan account of the 1^st petitioner on the following conditions:

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(i) The overdue amount of Rs.5,43,982/- shall be repaid in 13 instalments, of which an amount of Rs.50,000/- (Rupees fifty thousand only) shall be paid on or before 21.01.2022 and the balance of the overdue amount shall be paid in '12' equated monthly instalments commencing from 21.02.2022 .

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

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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 against the

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W.P.(C) NO.67 OF 2022

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petitioners shall be kept in abeyance.

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The writ petition is disposed of as above.

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Sd/- BECHU KURIAN THOMAS JUDGE

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bpr

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W.P.(C) NO.67 OF 2022

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APPENDIX

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PETITIONERS' EXHIBITS

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EXHIBIT P1 TRUE COPY OF THE DEMAND NOTICE DATED 3.12.2020 ISSUED BY THE RESPONDENT TO THE 1ST PETITIONER.

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EXHIBIT P2 TRUE COPY OF THE NOTICE DATED 29.12.2021 THUS ISSUED BY THE ADVOCATE COMMISSIONER, THALASSERY IN CMP. NO. 3184/2021 ON THE FILES OF THE CHIEF JUDICIAL MAGISTRATE COURT, THALASSERY.

Shylesh K. v. the Authorized Officer, Kerala State Co-Operative Bank Ltd.

Case brief

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Shylesh K. v. the Authorized Officer, Kerala State Co-Operative Bank Ltd.

Case brief

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