Allowed

Sasi.C. v. Kattakada Primary Co-Operative Agricultural and Rural Development Bank

Kerala HC21 Mar 2023WP(C)/5156/2022

Case brief

AI extract

What is this about?

High Court allowed the petitioner to regularize a defaulted loan account by paying the overdue amount and accrued interest in ten monthly instalments. The court directed the bank to accept this payment plan, continue regular EMIs, keep coercive proceedings in abeyance, and proceed with recovery upon any further default.

What did the court decide?

Direction to respondent bank to accept repayment of overdue amount and charges in 10 monthly instalments, regularize loan account, keep coercive proceedings in abeyance, and proceed with recovery upon

Sasi.C. Vs Kattakada Primary Co-Operative… — 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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TUESDAY, THE 21^ST DAY OF MARCH 2023 / 30TH PHALGUNA, 1944

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WP(C) NO. 5156 OF 2022

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PETITIONER:

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SASI.C. AGED 64 YEARS S/O. CHINNAPPAN NADAR, SREYAS, PANKOTTUKONAM, KUNNANADU, PUZHANADU P.O., THIRUVANANTHAPURAM-695125. BY ADVS. GOVIND R. S.KRISHNA

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RESPONDENTS:

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1 KATTAKADA PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK, T.N.2037, MALAYINKEEZHU, THIRUVANANTHAPURAM-695571, REPRESENTED BY THE SECRETARY. 2 THE BRANCH MANAGER, KATTAKADA PRIMARY CO-OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK, T.N.2037, MALAYINKEEZHU, THIRUVANANTHAPURAM-695571. 3 THE SALE OFFICER, KATTAKADA PRIMARY CO-OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK, T.N.2037, MALAYINKEEZHU, THIRUVANANTHAPURAM-695571.

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BY ADVS. T.R.HARIKUMAR ARJUN RAGHAVAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C)No.5156/2022

JUDGMENT

The petitioner availed a term loan from the respondent Bank. On default being committed, proceedings have been initiated under the provisions of the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 (hereinafter referred to as 'the CARD Act).

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The learned counsel appearing for the petitioner would submit that the petitioner may be permitted to regularise the loan account by paying overdue amount in instalments.

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It is submitted on behalf of the respondent bank that the petitioner committed default in repayment and the overdue amount is Rs.3,96,551/-. It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the overdue amount in limited instalments and regularise the loan account.

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I have heard the learned counsel for the petitioner as well as the learned counsel appearing for the respondent Bank.

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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 petitioner can be granted an opportunity to clear off the overdue amount in ten (10) equal monthly instalments

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W.P.(C)No.5156/2022

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first of which shall be paid on or before 10-04-2023 and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.

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Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.3,96,551/-

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along with bank charges from the petitioner and regularise the loan account of the petitioner on the following conditions:

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(i) The overdue amount of Rs.3,96,551/- together with any accrued interest and charges shall be repaid in ten (10) 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 the 10^th day of every succeeding month.

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(iii) Petitioner shall continue to pay the regular EMI’s along with the instalments as 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

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W.P.(C)No.5156/2022

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amounts, 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. JUDGE

acd

W.P.(C)No.5156/2022

APPENDIX OF WP(C) 5156/2022

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PETITIONER EXHIBITS

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Exhibit P1 A TRUE COPY OF THE NOTICE OF SALE ISSUED BY THE 3RD RESPONDENT DATED 15.1.2022.

Sasi.C. v. Kattakada Primary Co-Operative Agricultural and Rural Development Bank

Case brief

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Sasi.C. v. Kattakada Primary Co-Operative Agricultural and Rural Development Bank

Case brief

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What the court decided

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