Allowed

Sunilkumar.K.G., v. the Authorised Officer

Kerala HC24 Jul 2023WP(C)/14153/2023

Case brief

AI extract

What is this about?

This judgment disposes of a writ petition seeking regularization of a loan account impaired due to COVID-19. The court exercised powers under Article 226 to permit the petitioners to pay the overdue amount in ten equated monthly installments.

What did the court decide?

Petitioners permitted to pay overdue amount in ten equated monthly installments commencing from 24.08.2023; respondents directed to defer further proceedings.

Sunilkumar.K.G., Vs the Authorised Officer — Contract and Commercial Disputes | Kerala HC (2023)

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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 C.S.DIAS

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MONDAY, THE 24^TH DAY OF JULY 2023 / 2ND SRAVANA, 1945

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WP(C) NO. 14153 OF 2023

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PETITIONER/S:

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1 SUNILKUMAR.K.G., AGED 56 YEARS S/O GOPALAN, KARNAMKOTT HOUSE, POOKKODU VILLAGE, THOZHIYUR P.O, CHAVAKKAD TALUK, TRISSUR., PIN - 680520

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2 REENA, AGED 46 YEARS W/O SUDHEEP, KARNAMKOTT HOUSE, POOKKODU VILLAGE, THOZHIYUR P.O, CHAVAKKAD TALUK, TRISSUR-680520., PIN - 680520

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3 SUDHEEP.K.G., AGED 52 YEARS S/O GOPALAN, KARNAMKOTT HOUSE, POOKKODU VILLAGE, THOZHIYUR P.O, CHAVAKKAD TALUK, TRISSUR-680520., PIN - 680520

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4 DEEPAK.K.G AGED 50 YEARS S/O GOPALAN, KARNAMKOTT HOUSE, POOKKODU VILLAGE, THOZHIYUR P.O, CHAVAKKAD TALUK, TRISSUR-680520., PIN - 680520

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5 PRIYA SUNILKUMAR, AGED 49 YEARS W/O SUNIL KUMAR.K.G, KARNAMKOTT HOUSE, POOKKODU VILLAGE, THOZHIYUR P.O, CHAVAKKAD TALUK, TRISSUR-68520., PIN - 680520

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6 DHANYA, AGED 44 YEARS W/O DEEPAK.K.G, KARNAMKOTT HOUSE, POOKKODU VILLAGE, THOZHIYUR P.O, CHAVAKKAD TALUK, TRISSUR-680520., PIN - 680520 7 SULOCHANA KUMARAN AGED 55 YEARS W/O KUMARAN.P.V, PANANJIKATTIL HOUSE, MANGATTUVILLAGE, KOTTAPPURAM .P.O. THALAPPILLI, TRISSUR-680520., PIN - 680584

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WP(C) NO. 14153 OF 2023

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8 SUSHI SUSHANDI AGED 20 YEARS D/O SUNIL KUMAR.K.G, KARNAMKOTT HOUSE, POOKKODU VILLAGE, THOZHIYUR P.O, CHAVAKKAD TALUK, TRISSUR680520., PIN - 680520

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BY ADVS. M.RETHEESHKUMAR SANJAY THAMPI

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RESPONDENT/S:

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1 THE AUTHORISED OFFICER, THE KERALA STATE CO-OPERATIVE BANK LTD, HEAD OFFICE, SAHAKARANA SATABDI MANDIRAM, TUDA ROAD, KOVILAKATHUMPADAM, THIRUVAMBADI P.O, TRISSUR., PIN - 680022

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2 THE KERALA STATE CO-OPERATIVE BANK LTD., HEAD OFFICE BRANCH, SAHAKARANA SATABDI MANDIRAM, TUDA ROAD, KOVILAKATHUMPADAM, THIRUVAMBADI P.O, TRISSUR REPRESENTED BY ITS BRANCH MANAGER, PIN - 680022., PIN - 680022

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OTHER PRESENT:

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SRI PC SASIDHARAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 14153 OF 2023

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JUDGMENT

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The writ petition is filed to direct the respondents to permit the petitioners to pay the overdue amount in installments and regularise the loan account.

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The petitioners' case is that they had availed financial assistance from the 2^nd respondent bank by creating an equitable mortgage. Due to Covid-19 pandemic and unforeseen circumstances, they could not pay the installments on time. The bank has now proceeded against the secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, 'SARFAESI Act'). The petitioners have filed WP(C) No.7913/2019 before this Court, which was allowed by Ext.P1 judgment, permitting the petitioners to pay the overdue amount in twelve equated monthly installments commencing from 15.04.2019. The petitioners could not pay the amount within the stipulated time period. Now the respondents are threatening to take physical

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WP(C) NO. 14153 OF 2023

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possession of the secured asset. The petitioners are willing to pay the overdue amount in installments and regularise the loan account. Hence, the Writ Petition.

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When the writ petition came up for consideration on 25.04.2023, this Court deferred further recovery proceedings subject to the condition that the petitioners deposit an amount of Rs.25,00,000/- within two weeks.

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Heard; Sri. Retheeshkumar M., the learned Counsel appearing for the petitioners and Sri.P.C.Sasidharan, the learned Counsel appearing for the respondents.

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Sri.P.C.Sasidharan, on instructions, submitted that the petitioners have complied with the interim order dated 25.04.2023. The overdue amount in respect of the eight loans availed by the petitioners as on 30.06.2023 is Rs.2,62,72,412/-. Notwithstanding Ext.P1 judgment, the respondents are willing to permit the petitioners to pay the overdue amount as stated above in ten equated monthly installments. The said submission is recorded.

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WP(C) NO. 14153 OF 2023

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The learned Counsel appearing for the

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petitioners submitted that the petitioners are ready to accept the above offer.

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Having considered the pleadings and materials

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on record and the submission made by the learned counsel appearing for the parties; the broad consensus arrived at between the parties and to provide the petitioners one last opportunity to pay off the loan amount, I am inclined to exercise the powers of this Court under Article 226 of the Constitution of India and dispose of the writ petition.

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Resultantly, I dispose of the writ petition in the following manner:

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(i) The respondents are directed to defer further proceedings pursuant to Ext.P2, to enable the petitioners to pay the overdue amount in equated monthly instalments.

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(ii) The petitioners are permitted to pay the

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WP(C) NO. 14153 OF 2023

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overdue amount as stated above with future interest and cost to the 2^nd respondent-bank in ten equated monthly installments commencing from 24.08.2023 along with regular EMIs.

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(iii) Needless to mention, if the petitioners default in payment of any one of the installments as directed above, the petitioners would lose the benefit of this judgment and the respondents would be at liberty to revive the recovery proceedings from the stage it presently stands, and bring it to its logical conclusion in accordance with law.

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(iv) It is made clear that, no further application for modification/extension of time shall be entertained.

Sd/-

C.S.DIAS JUDGE

rkc/24.07.23

WP(C) NO. 14153 OF 2023

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APPENDIX OF WP(C) 14153/2023

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PETITIONER EXHIBITS

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Exhibit P1 A TRUE COPY OF THE JUDGMENT IN WPC NO 7913/2019 DATED 19.03.2019

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Exhibit P2 A TRUE COPY OF THE NOTICE DATED 05.04.2023 ISSUED BY THE COMMISSIONER TO THE PETITIONER

Sunilkumar.K.G., v. the Authorised Officer

Case brief

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Sunilkumar.K.G., v. the Authorised Officer

Case brief

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