Disposed

Sivaraj T T, v. People’S Urban Co-Operative Bank Ltd.

Kerala HC26 Jul 2023WP(C)/16891/2023

Case brief

AI extract

What is this about?

The High Court at Ernakulam disposed of a writ petition filed by a loan defaulting petitioner. The Bank proceeded with secured assets under the SARFAESI Act. The Court granted a one-time opportunity to the petitioner to pay the overdue amount in ten equated monthly instalments, directing the Bank to defer coercive proceedings.

What did the court decide?

Direction to respondents to defer coercive proceedings to enable petitioner to pay overdue amount in ten equated monthly instalments commencing 26.08.2023.

Sivaraj T T, Vs People’S Urban Co-Operative Bank Ltd. — Banking and Recovery | 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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WEDNESDAY, THE 26^TH DAY OF JULY 2023 / 4TH SRAVANA, 1945

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WP(C) NO. 16891 OF 2023

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PETITIONER:

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SIVARAJ T T, AGED 46 YEARS THUMBAPARAMBIL HOUSE, CHIRAMEL PARAMBIL LANE, RMV ROAD, ELAMAKKARA (PO), ERNAKULAM DISTRICT., PIN - 682026

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BY ADVS.P.S.ANISHAD P.K.VARGHESE LIMNA BHASKARAN

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RESPONDENTS:

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1 PEOPLE'S URBAN CO-OPERATIVE BANK LTD., HEAD OFFICE, THRIPPUNITHURA (PO), THRIPPUNITHURA, ERNAKULAM DISTRICT.REP.BY ITS GENERAL MANAGER, PIN – 682 301

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2 PEOPLE'S URBAN CO-OPERATIVE BANK LTD ELAMAKKARA BRANCH, ELAMAKKARA (PO), ERNAKULAM DISTRICT, REP.BY ITS MANAGER, PIN – 682 026

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BY ADV.DEVAPRASANTH P.J.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 16891 OF 2023

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JUDGMENT

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Dated this the 26^th day of July 2023

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The writ petition is filed to direct the respondents to permit the petitioner to pay the overdue amount in equated monthly instalments and regularise the loan account.

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The petitioner’s case is that, he had availed a housing loan from the second respondent – Bank by creating an equitable mortgage by deposit of title deeds. Tenure of the loan is for 15 years from 2020. Due to reasons beyond his control, he could not pay the instalments on time. The Bank has now proceeded against the secured assets under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (in short, ‘Act’). The petitioner met with a serious accident and is still disabled. The petitioner is willing to pay the overdue amount in equated monthly instalments. Hence, the writ petition.

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WP(C) NO. 16891 OF 2023

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Heard; Sri.P.S.Anishad, the learned counsel appearing for the petitioner and Sri.Devaprsanth.P.J., the learned counsel appearing for the respondents.

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Sri.Devaprasanth.P.J., on instructions, submitted that the overdue amount as on today is Rs.1,13,088/-. The tenure of the loan is till 2040. The respondents are willing to permit the petitioner to pay the above overdue amount in ten equated monthly instalments. The said submission is recorded.

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Having considered the pleadings and materials on record and the submission made by the learned counsel appearing for the parties, to provide the petitioner one last opportunity to pay off the overdue 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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WP(C) NO. 16891 OF 2023

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(i) The respondents are directed to defer further coercive proceedings pursuant to Ext.P1 to enable the petitioner to pay the overdue amount in instalments.

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(ii) The petitioner is permitted to pay the overdue amount as stated above with future interest and cost to the first respondent - Bank - in 10 equated monthly instalments commencing from 26.08.2023 along with regular EMIs.

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(iii) Needless to mention, if the petitioner commits default of the condition ordered above, he would lose the benefit of this judgment and the respondent would be at liberty to proceed with recovery proceedings from the stage it presently stands.

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