Partly allowed

Antony Alias Babychan v.a., v. Kerala Gramin Bank

Kerala HC13 Jun 2022WP(C)/8194/2022

Case brief

AI extract

What is this about?

The High Court of Kerala granted the petitioner an opportunity to repay outstanding dues under a Kissan Credit Card, overdraft, and term loan via a 10-month instalment scheme. Coercive recovery proceedings were kept in abeyance, subject to default conditions.

What did the court decide?

Direction to repay K.C.C and O.D dues totaling Rs.10,50,117/- and term loan dues of Rs.3,06,826/- in ten monthly instalments; all coercive proceedings kept in abeyance.

Antony Alias Babychan v.a., Vs Kerala Gramin… — 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 13TH DAY OF JUNE 2022 / 23RD JYAISHTA, 1944
WP(C) NO. 8194 OF 2022

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PETITIONER/S:

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ANTONY ALIAS BABYCHAN V.A.,
AGED 65 YEARS
S/O.AUGUSTY, VADAKKEMULANJANAL, KUTTICHATHANKANDY,
THONDIYIL P.O., KANNUR DISTRICT, PIN-670 673.
BY ADVS.
P.S.ANISHAD
LIMNA BHASKARAN
K.R.ARUN KRISHNAN
BIJU KUMAR

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RESPONDENT/S:

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1KERALA GRAMIN BANK,
THONDIYIL BRANCH, THONDIYIL P.O., MALAPPURAM DISTRICT,
PIN-670 673, REPRESENTED BY ITS MANAGER.

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2CHIEF MANAGER, AUTHORISED OFFICER,
KERALA GRAMIN BANK, KGB TOWERS, AK ROAD, UPHILL,
MALAPURAM DISTRICT, PIN-676 505.

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SRI. K.M. ANEESH (SC)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 8194 OF 2022 2

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JUDGMENT

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Petitioner availed four separate loans namely a Kisan Credit Card loan, an overdraft facility, a term loan and a mortgage loan from the respondent bank. Petitioner has approached this Court challenging proceedings initiated by the respondent Bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, for recovery of the amounts due from the petitioner in respect of these loans.

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When this matter is taken up for consideration today, petitioner has confined the relief to an opportunity for repaying the defaulted amounts in instalments and to obtain regularisation of the loan account.

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Learned Standing counsel appearing for the respondent bank submits that in respect of the Kissan Credit Card loan and the overdraft facility availed by the petitioner, the accounts cannot be regularised and the entire dues in respect of those loans have to be paid in full. It is submitted that in respect of the mortgage loan availed by the petitioner, at present, there is no overdue amount on account of re-scheduling. It is submitted that under the

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WP(C) NO. 8194 OF 2022 3

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Kissan Credit Card loan(K.C.C), an amount of Rs.4,17,413/(Rupees four lakhs seventeen thousand four hundred and thirteen only) is due and under the overdraft facility (O.D), an amount of Rs.6,32,704/- (Rupees six lakhs thirty two thousand seven hundred and four only) is due . It is submitted that both these amounts have to be remitted in full. It is submitted that in respect of the term loan, an amount of Rs.3,06,826/- (Rupees three lakhs six thousand eight hundred and twenty six only) is the overdue amount and the petitioner can be allowed to regularise the same by paying the overdue amount.

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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 in respect of the term loan, the petitioner can be granted an opportunity to repay the overdue amount in ten instalments and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised. In respect of Kissan Credit Card loan and overdraft facility availed by the petitioner, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount in ten instalments.

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WP(C) NO. 8194 OF 2022 4

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Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.4,17,413/- (Rupees four lakhs seventeen thousand four hundred and thirteen only) due under the K.C.C and Rs.6,32,704/- (Rupees six lakhs thirty two thousand seven hundred and four only) due under the O.D. facility along with bank charges from the petitioner on the following conditions:

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(i) The entire outstanding amount of Rs.4,17,413/- (Rupees four lakhs seventeen thousand four hundred and thirteen only) and Rs.6,32,704/- (Rupees six lakhs thirty two thousand seven hundred and four only) shall be repaid in ten equated monthly instalments along with any accrued interest/costs;

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(ii) The first instalment shall be paid on or before 15.07.2022 and the subsequent instalments shall be paid on or before the 20^th day of the succeeding months;

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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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In respect of the term loan availed by the petitioner, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.3,06,826/- (Rupees three lakhs six thousand eight hundred and twenty six only) along with any accrued

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WP(C) NO. 8194 OF 2022 5

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interest/bank charges from the petitioner in ten equal monthly instalments and regularise the loan account of the petitioner on the following conditions:

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(i) The overdue amount of Rs.3,06,826/- (Rupees three lakhs six thousand eight hundred and twenty six only) along with any accrued interest and charges shall be repaid in ten equated monthly instalments;

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(ii)The first instalment shall be paid on or before 30.06.2022 and the subsequent instalments shall be paid on or before the 20^th day of each succeeding month;

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(iii) Petitioner shall continue to pay the regular instalments along with the instalments directed above;

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(v) 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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(vi) 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.

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JUDGE

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ajt

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WP(C) NO. 8194 OF 2022 6

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APPENDIX OF WP(C) 8194/2022

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PETITIONER EXHIBITS
Exhibit P1TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE
2ND RESPONDENT DATED 03.01.2022.

Antony Alias Babychan v.a., v. Kerala Gramin Bank

Case brief

What is this about?

What did the court decide?

Antony Alias Babychan v.a., v. Kerala Gramin Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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