Allowed

Sivan. v, v. the Karamana Co-Operative Urban Bank LTD.T.1761

Kerala HC5 Dec 2023WP(C)/27172/2023

Case brief

AI extract

What is this about?

High Court granted breathing time to bank petitioners facing SARFAESI coercive proceedings by ordering payment of overdue arrears via monthly installments and payment of EMI, deferring coercive action pending compliance and allowing regularisation of account after clearing dues.

What did the court decide?

Overdue arrears to be paid in ten monthly installments starting 05.01.2024 plus regular EMI; coercive proceedings deferred; liberty to regularise account upon clearing dues.

Sivan. v, Vs the Karamana Co-Operative Urban Bank… — 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 N.NAGARESH

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TUESDAY, THE 5^TH DAY OF DECEMBER 2023 / 14TH AGRAHAYANA, 1945

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WP(C) NO. 27172 OF 2023

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PETITIONERS:

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1 SIVAN. V, AGED 55 YEARS, S/O VISWANADAN ASARI, CHITHIRA, T.C.NO.21/603-1, KUNNINPURAM, NEDUMCAUD, KARAMANA P.O, THIRUVANANTHAPURAM, PIN – 695002.

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2 SHEELA.K, AGED 50 YEARS, W/O SIVAN.V, CHITHIRA, T.C.NO.21/603-1, KUNNINPURAM, NEDUMCAUD, KARAMANA P.O, THIRUVANANTHAPURAM, PIN – 695002.

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BY ADVS. D.SAJEEV LIGEY ANTONY

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RESPONDENT:

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1 THE KARAMANA CO-OPERATIVE URBAN BANK LTD. T.1761, KARAMANA P.O, THIRUVANANTHAPURAM, PIN - 695002, REPRESENTED BY ITS AUTHORISED OFFICR.

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2 THE MANAGER, THE KARAMANA CO-OPERATIVE URBAN BANK LTD.T.1761, KARAMANA P.O, THIRUVANANTHAPURAM, PIN – 695002.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C) No.27172 of 2023

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J U D G M E N T

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Dated this the 5^th day of December, 2023

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The petitioners approached this Court aggrieved by the

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coercive proceedings initiated by the 1^st respondent-Karamana Co-operative Urban Bank invoking the provisions of SARFAESI Act, 2002. It is an admitted position that there is an outstanding of ₹13,16,754/- as on 14.08.2023 payable by the petitioners. The

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petitioners would submit that the overdue amount payable by them is ₹6,41,037/-.

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Though notice was served on the respondents and the service is complete, there is no appearance for the respondents.

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This Court granted an interim order to the petitioners on 17.08.2023, directing to defer further proceedings pursuant to Ext.P1 till 25.08.2023. The said interim order was extended by

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W.P.(C) No.27172 of 2023

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this Court on 31.10.2023 on condition that the petitioners remit an

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amount of ₹1 lakh on or before 30.11.2023.

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The petitioners state that the petitioners have remitted

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the said amount and the overdue amount stands reduced to that extent.

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Taking into consideration the facts of the case, I am of

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the view that the petitioners can be granted a breathing time to remit the overdue arrears within a reasonable time.

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

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(i) The petitioners shall remit the overdue

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arrears in 10 consecutive and equal monthly instalments. The first of such instalment shall be paid on or before 05.01.2024.

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(ii) The remaining 9 instalments shall be paid in

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the next consecutive 9 months.

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W.P.(C) No.27172 of 2023

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(iii) The petitioners shall also continue to pay the regular EMIs along with the aforesaid payments.

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(iv) If the petitioners commit any default in

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making the payment as directed above, the respondents will be at liberty to proceed against the petitioners in accordance with law.

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(v) If the petitioners pay the amount as directed

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in this judgment, any coercive proceedings against the petitioners shall stand deferred for the time being.

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(vi) After clearing the overdue amount, the petitioners

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will be at liberty to approach the Bank for regularisation of the loan account.

Sd/-

N. NAGARESH

JUDGE

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W.P.(C) No.27172 of 2023

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:5:

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APPENDIX OF WP(C) 27172/2023

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PETITIONER EXHIBITS

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Exhibit P1 TRUE PHOTOCOPY OF THE ORDER DATED 07.12.2021 ON THE FILE THE HON'BLE CHIEF JUDICIAL MAGISTRATE COURT, THIRUVANANTHAPURAM.

Sivan. v, v. the Karamana Co-Operative Urban Bank LTD.T.1761

Case brief

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Sivan. v, v. the Karamana Co-Operative Urban Bank LTD.T.1761

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