Allowed

Bilu K., v. Authorised Officer

Kerala HC25 Jul 2023WP(C)/5178/2023

Case brief

AI extract

What is this about?

This writ petitioner sought regularization of a business loan account and deferred coercive proceedings under the SARFAESI Act. The Court recorded a consensus between parties, granted the petitioners twelve months to pay overdue dues in equated instalments, and directed the bank to refrain from further recovery actions during this period.

What did the court decide?

Directed the respondents to defer coercive proceedings and permitted the petitioners to pay the overdue amount with future interest and cost in twelve equated monthly instalments commencing from 25.8.

Bilu K., Vs Authorised Officer — Contract and Commercial Disputes | Kerala HC (2023)

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WP(C) No. 5178 of 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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TUESDAY, THE 25TH DAY OF JULY 2023 / 3RD SRAVANA, 1945
WP(C) NO. 5178 OF 2023

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PETITIONER/S:

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1BILU K.,
AGED 49 YEARS
S/O KRISHNAN K., CHERUKULATHIL HOUSE, NALLUR, FEROKE
P.O., KOZHIKODE, PIN - 673631

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2MINI .K
W/O BILU .K, CHERUKULATHIL HOUSE, NALLUR, FEROKE P.O
KOZHIKODE, PIN - 673631
BY ADVS.
RAFEEK. V.K.
VICTOR ANTONY NOONE
SALMAN FARIS

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RESPONDENT/S:

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AUTHORISED OFFICER,

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GENERAL MANAGER, FEROKE CO-OPERATIVE URBAN BANK LTD.,
NO.D 2640, FEROKE P.O, KOZHIKODE, PIN - 673631

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BY ADVS.
S.K.SAJU
PRANAV

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
25.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) No. 5178 of 2023

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C.S DIAS,J.

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--------------------------WP(C) No. 5178 of 2023

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----------------------------Dated this the 25^th day of July, 2023^.

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JUDGMENT

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The writ petition is filed to direct the respondent to

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permit the petitioners to pay off the overdue amount in equated monthly instalments and regularise the loan account.

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The petitioners’ case is that they had availed a

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business loan from the respondent – Bank – by creating

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an equitable mortgage. Due to reasons beyond their

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control, they could not pay the instalments on time.

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Now, the Bank has initiated proceedings against the

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secured asset under the Securitization and

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Reconstruction of Financial Assets and Enforcement of

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WP(C) No. 5178 of 2023

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Security Interest Act, 2002 ( in short, ‘Act’). The

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petitioners are willing to pay the overdue amount in equated monthly instalments. Hence, the writ petition.

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Heard; Sri.Rafeek V.K, the learned counsel appearing for the petitioners and Sri.S.K Saju, the

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learned counsel appearing for the respondent.

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Sri.S.K Saju, on instructions, submitted that the

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overdue amount as on today is Rs.11,47,502/-. The tenure of the loan is till 2027. The respondent is willing to permit the petitioners to pay the overdue amount in

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twelve equated monthly instalments. The said submission is recorded.

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The learned counsel appearing for the petitioners submitted that the petitioners are ready to accept the above offer.

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WP(C) No. 5178 of 2023

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Having considered the pleadings and materials

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on record, the submissions made by the learned counsel appearing for the parties, the consensus arrived at between the parties and to provide the petitioners one last opportunity to clear off the liability, I am inclined to exercise the powers of this Court under Article 226 of the Constitution of India and entertain the writ petition.

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Resultantly, I dispose of the writ petition in the

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following manner:

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(i) The respondents are directed to defer further coercive proceedings pursuant to Ext P1, to enable the petitioners to pay the liability in equated monthly instalments as stated below.

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(ii) The petitioners are permitted to pay the overdue amount as stated above with future interest and cost to the respondent – Bank – in twelve equated monthly instalments commencing from 25.8.2023 along with regular EMIs.

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WP(C) No. 5178 of 2023

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(iii) Needless to mention, if the petitioners commit default in any of the conditions ordered above, the petitioners would lose the benefit of this judgment and the respondent would be at liberty to proceed with recovery proceedings from the stage

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it presently stands.

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(iv) It is made clear that, no further application for modification/extension of time shall be entertained.

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sd/-

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sks/25.7.2023 C.S.DIAS, JUDGE

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WP(C) No. 5178 of 2023

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APPENDIX OF WP(C) 5178/2023

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PETITIONER EXHIBITS
Exhibit P1TRUE COPY OF POSSESSION NOTICE DATED
18.01.2023

Bilu K., v. Authorised Officer

Case brief

What is this about?

What did the court decide?

Bilu K., v. Authorised Officer

Case brief

What is this about?

What did the court decide?

What the court decided

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