Disposed

Bindhu.O v. Palode Co-Operative Agricultural and Rural Development Bank Ltd. NO.T.862

Kerala HC16 Mar 2023WP(C)/4371/2023

Case brief

AI extract

What is this about?

Petitioner filed a writ petition against a bank and Sale Officer seeking stay of foreclosure proceedings due to loan defaults. The Court directed the bank to accept repayment of two loans in twelve instalments and kept coercive proceedings in abeyance. First instalment due 10.04.2023.

What did the court decide?

Powers of court exercised to direct respondent bank to accept repayment of overdue amounts in twelve instalments and keep coercive proceedings in abeyance.

Bindhu.O Vs Palode Co-Operative Agricultural… — 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 GOPINATH P.

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THURSDAY, THE 16TH DAY OF MARCH 2023 / 25TH PHALGUNA, 1944

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WP(C) NO. 4371 OF 2023

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PETITIONER/S:

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BINDHU.O, AGED 44 YEARS
W/O RAJAN T, RESHMA BHAVAN, CHEMPAKASSERY HOUSE,
POOVATHOOR P.O., PALODE, NEDUMANGAD
THIRUVANANTHAPURAM, PIN - 695562
BY ADV LATHEESH SEBASTIAN

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RESPONDENT/S:

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1PALODE CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT
BANK LTD. NO.T.862,KARIMANKODE P.O., PALODE,
THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY, PIN -
695562

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2THE SALE OFFICER,
PALODE CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT
BANK LTD. NO.T.862, KARIMANKODE P.O., PALODE,
THIRUVANANTHAPURAM, PIN - 695562
BY ADVS.
G.P.SHINOD
GOVIND PADMANAABHAN(K/925/2010)
AJIT G ANJARLEKAR(K/000083/2014)
ATUL MATHEWS(K/1675/2018)
GAYATHRI S.B.(K/2005/2020)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
16.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 4371 OF 2023 2

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JUDGMENT

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Petitioner availed two separate loans from the respondent bank. On default being committed, proceedings were initiated against the petitioner under the provisions of the Kerala State Co-operative Agricultural and Rural Development Bank Act, 1984 and the property of the petitioner was brought to sale and auction was scheduled on 01.03.2023. This prompted the petitioner to approach this Court by filing the above writ petition.

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Learned counsel appearing for the petitioner would submit that the petitioner may be permitted to clear the liability in some instalments.

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Learned counsel appearing for the respondent bank would submit that the sale of the properties scheduled on 01.03.203 did not fructify. It is submitted that in respect of one of the loans availed by the petitioner, the term is till 2028 and the said loan can be regularised. It is submitted that the overdue amount in respect of that loan, as on 01.03.2023, is Rs.1,37,500/- (Rupees One lakh thirty seven thousand and five hundred only). It is submitted that the term of the other loan expired in the year 2021 and the entire outstanding amount in

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WP(C) NO. 4371 OF 2023 3

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respect of that loan has to be repaid. It is submitted that the outstanding amount, in the second loan, as on 01.03.2023, is Rs.1,46,400/- (Rupees One lakh forty six thousand and four hundred only). It is submitted that the respondent bank has no objection in granting some reasonable instalments to the petitioner to clear the liability in respect of both loans.

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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 the in respect of the first loan, petitioner can be granted an opportunity to repay the overdue amount in twelve instalments and that of the second loan, petitioner can be permitted to clear the outstanding amount in twelve instalments.

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Accordingly, there will be a direction to the respondent bank to accept repayment of the overdue amount of Rs.1,37,500/- (Rupees One lakh thirty seven thousand and five hundred only) along with accrued interest and bank charges from the petitioner and regularise the loan account of the petitioner, in the following manner:

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(i) The overdue amount of Rs.1,37,500/- (Rupees One lakh thirty seven thousand and five hundred only) shall be repaid in twelve equated monthly instalments along with any accrued interest/costs;

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WP(C) NO. 4371 OF 2023 4

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(ii) The first instalment shall be paid on or before 10.04.2023 and the subsequent instalments shall be paid on or before the 10^th day of the succeeding months;

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

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(iv) 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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(v) In order to enable the petitioner to repay the entire amounts as above, all coercive proceedings shall be kept in abeyance.

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In respect of the second loan availed by the petitioner,

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there will be a direction to the respondent bank to accept repayment of the outstanding amount of Rs.1,46,400/- (Rupees One lakh forty six thousand and four hundred only) along with any accrued interest/bank charges from the petitioner in twelve equal monthly instalments on the following conditions:

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(i) The outstanding amount of Rs.1,46,400/- (Rupees One lakh forty six thousand and four hundred only) along with any accrued interest and charges shall be repaid in twelve equated monthly instalments;

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(ii)The first instalment shall be paid on or before 10.04.2023 and the subsequent instalments shall be paid on or before the 10^th day of each succeeding month;

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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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WP(C) NO. 4371 OF 2023 5

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(iv)In order to enable the petitioner to repay the entire amounts as above, 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. 4371 OF 2023 6

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APPENDIX OF WP(C) 4371/2023

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PETITIONER EXHIBITS
ExhibitP1TRUE COPY OF THE NOTICE OF THE 2ND RESPONDENT
DATED 18.01.2023
ExhibitP2TRUE COPY OF THE REPRESENTATION OF THE
PETITIONER DATED 27.01.2023

Bindhu.O v. Palode Co-Operative Agricultural and Rural Development Bank Ltd. NO.T.862

Case brief

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Bindhu.O v. Palode Co-Operative Agricultural and Rural Development Bank Ltd. NO.T.862

Case brief

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