Allowed

Ajimon L, v. Icici Banklimited

Kerala HC7 Dec 2023WP(C)/16034/2023

Case brief

AI extract

What is this about?

Petitioners challenged coercive proceedings under SARFAESI Act initiated by ICICI Bank for loan default. Bench allowed petition, directing partial payment and instalments for balance dues, deferring coercive action upon compliance.

What did the court decide?

Directing petitioners to remit ₹1,50,000 by 31.12.2023 and balance overdue in five monthly instalments; coercive proceedings deferred if payments made.

Ajimon L, Vs Icici Banklimited — 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 N.NAGARESH

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THURSDAY, THE 7^TH DAY OF DECEMBER 2023 / 16TH AGRAHAYANA,

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1945

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WP(C) NO. 16034 OF 2023

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PETITIONERS:

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1 AJIMON L, AGED 54 YEARS S/O ANNAMMA R , VALIYA VILASAM THENNOOR P O, TRIVANDRUM., PIN - 695563 2 SUDHA, AGED 52 YEARS VALIYA VILASAM THENNOOR P O, TRIVANDRUM695563., PIN - 695563 BY ADVS. SARATHKUMAR.T.S JISMEMOL JAMES SHYAM KUMAR M.P RONY V.P. ACHANKUNJU P.C SALU ANNA LAWRANCE PRASOON.K.P SREEKANTH M.

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RESPONDENT:

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ICICI BANK LIMITED, REPRESENTED BY ITS AUTHORIZED OFFICER, MR.SHANKAR JAYARAMAN , REGIONAL RELATIONSHIP MANAGER MORTGAGE DEPARTMENT , ZONAL OFFICE PUSHPAMANGALAM ESTATE , N H BYPASS EDAPALLY , KOCHI -682024., PIN – 682024

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SRI.PRADEESH CHACKO

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C) No.16034/2023

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N.NAGARESH, J.

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- - - - - - - - - - - - - - - - - - - - - W.P.(C) No.16034 of 2023

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Dated this the 7^th day of December, 2023

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JUDGMENT

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The petitioners have approached this Court aggrieved by

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the coercive proceedings for recovery of financial advance made by the respondent-Bank to the petitioners, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

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The Bank paid ₹5,41,603/- to the petitioners as Take Over loan in the year 2019. The petitioners state that though the petitioners made remittances promptly during the initial repayment period of the financial advance, they could not pay the repayment instalments promptly later. The repayment of loan fell into arrears later. It happened due to reasons beyond the control of the petitioners.

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Though the petitioners requested the Bank to permit the petitioners to repay the overdue amounts in easy monthly instalments, the Bank authorities were not yielding. The authorities, instead, started coercive proceedings, invoking the

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W.P.(C) No.16034/2023

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provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Security Interest (Enforcement) Rules, 2002 and issued Ext.P1 notice invoking Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

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The petitioners state that they are still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondent is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioners, they will be put to untold hardship and loss.

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Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioners. On behalf of the respondent, it is submitted that the loan was given to the petitioners in the year 2019. The petitioners committed default in repaying the loan.

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The Bank repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the Bank had no other

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go, than to proceed against the petitioners invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Ext.P1 was issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

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The Standing Counsel, however, submitted that if the petitioners are ready and willing to make a substantial payment soon and remit the overdue amount immediately thereafter, a short breathing time can be granted to the petitioners to clear the dues. The Standing Counsel submitted that the total outstanding amount due to the Bank from the petitioners as on 07.12.2023 is ₹6,44,005/- and the overdue amount as on 07.12.2023 is ₹2,66,698/-.

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I have heard the counsel for the petitioners and the Standing Counsel representing the Bank.

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The specific case of the petitioners is that the petitioners have been making the repayment and maintaining the loan account initially. The default in repayment of the account occurred lately due to reasons beyond the control of

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the petitioners. The petitioners have provided substantial security which will safeguard the interest of the Bank.

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In the facts and circumstances of the case, I am

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inclined to dispose of the writ petition giving a short and reasonable time to the petitioners to clear off their liability.

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The writ petition is therefore disposed of with the following directions:

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(i) The petitioners shall remit an amount of ₹1,50,000/- (Rupees One Lakh Fifty Thousand only) on or before 31.12.2023. (ii) The petitioners shall remit the balance overdue amount of Rs.1,16,698/- (Rupees One Lakh Sixteen Thousand Six Hundred and Ninety Eight only) in consecutive five equal monthly instalments along with accruing interest and other Bank charges, if any.

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(iii) If the petitioners commit default in making payments as directed above, the respondent will be at liberty to continue with coercive proceedings against the petitioners in

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accordance with law.

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(iv) The petitioners shall also pay current EMIs along with the aforesaid payments.

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(v) If the petitioners pay the instalments as directed above, any coercive proceedings against the petitioners shall stand deferred.

Sd/-

N.NAGARESH

JUDGE

bng

W.P.(C) No.16034/2023

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APPENDIX OF WP(C) 39841/2023

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PETITIONERS EXHIBITS Exhibit-P1 A TRUE COPY OF THE NOTICE UNDER SECTION 13(2) OF THE SARFAESI ACT, 2002 DATED 25-10-2023

Ajimon L, v. Icici Banklimited

Case brief

What is this about?

What did the court decide?

Ajimon L, v. Icici Banklimited

Case brief

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