Allowed

Ratheesh A.D v. Irinjalakuda Co-Operative Agricultural and Rural Development Bank Ltd. No.R. 312

Kerala HC21 Mar 2023WP(C)/5186/2023

Case brief

AI extract

What is this about?

The court allowed the writ petition regarding default in a housing loan. It directed the bank to regularize the loan account upon repayment of the overdue amount through instalments. Coercive proceedings are kept in abeyance pending regularisation.

What did the court decide?

Bank directed to regularize loan account on condition of repayment of overdue amount and interest in ten equated monthly instalments starting 10-04-2023; coercive proceedings kept in abeyance.

Ratheesh A.D Vs Irinjalakuda Co-Operative Agricultural… — 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 GOPINATH P.

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TUESDAY, THE 21^ST DAY OF MARCH 2023 / 30TH PHALGUNA, 1944

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WP(C) NO. 5186 OF 2023

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PETITIONERS:

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1 RATHEESH A.D AGED 46 YEARS S/O DIVAKARAN ARUMBHULLI HOUSE, KARALAM P.O, THRISSUR DISTRICT, PIN - 680711

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2 REMYA V.M. AGED 36 YEARS ARUMBHULLI HOUSE, KARALAM P.O, THRISSUR DISTRICT, PIN - 680711 BY ADVS. NIRMAL V NAIR M.ANEESH ARATHI PRABHAKARAN DELLA ABRAHAM MUHAMMED NASEEF BIN SALIM

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RESPONDENTS:

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1 IRINJALAKUDA CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD. NO.R. 312 MAIN ROAD, IRINJALAKUDA P.O., THRISSUR, REPRESENTED BY ITS SECRETARY, PIN - 680121

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2 SPECIAL SALE OFFICER IRINJALAKUDA CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD NO.R. 312, MAIN ROAD, IRINJALAKUDA P.O., THRISSUR, PIN - 680121

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BY ADV Abraham Mathan

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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.5186/2023

JUDGMENT

The petitioners availed a housing 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) and the property of the petitioners has been brought to sale on 27.3.2023.

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The learned counsel appearing for the petitioners would submit that the petitioners 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 petitioners committed default in repayment and the overdue amount is Rs.6,09,995/-. 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 petitioners 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

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W.P.(C)No.5186/2023

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situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioners can be granted an opportunity to clear off the overdue amount in twelve (12) equal monthly instalments first of which shall be paid on or before 10-042023 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 Rs6,09,995/- along with bank charges from the petitioners and regularise the loan account of the petitioners on the following conditions:

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(i) The petitioners shall pay an amount of Rs.1,00,000/(Rupees one lakh only) on or before 27-03-2023 and the balance overdue amount together with any accrued interest and charges 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) Petitioners shall continue to pay the regular EMI’s along

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W.P.(C)No.5186/2023

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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 petitioners to repay the entire 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.5186/2023

APPENDIX OF WP(C) 5186/2023

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PETITIONER EXHIBITS

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Exhibit P1 A TRUE COPY OF THE OF THE PASSBOOK OF THE LOAN ACCOUNT NOS. INNB 093/2013-14 HELD BY THE 1ST PETITIONER WITH THE 1ST RESPONDENT Exhibit P2 A TRUE COPY OF THE OF THE PASSBOOK OF THE LOAN ACCOUNT NOS. INNB 093/2013-14 HELD BY THE 2ND PETITIONER WITH THE 1ST RESPONDENT Exhibit P3 A TRUE COPY OF THE NOTICE NO. E.P. 4171/17 DATED 25.01.2023 ISSUED BY THE 2ND RESPONDENT Exhibit P4 A TRUE COPY OF THE AUCTION NOTICE NO. EP4171/17 DATED 16.02.2023 ISSUED BY THE 2ND RESPONDENT

Ratheesh A.D v. Irinjalakuda Co-Operative Agricultural and Rural Development Bank Ltd. No.R. 312

Case brief

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Ratheesh A.D v. Irinjalakuda Co-Operative Agricultural and Rural Development Bank Ltd. No.R. 312

Case brief

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What did the court decide?

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