Allowed

Arunkumar S. v. 1. People’S Urban Co-Operative Bank Ltd. NO.51.

Kerala HC20 Jun 2023WP(C)/5556/2023

Case brief

AI extract

What is this about?

In this Writ Petition, the petitioner sought to regularise a defaulting loan account and avoid coercive proceedings under the SARFAESI Act. The Court observed a consensus between parties on a repayment plan and exercised powers under Article 226 to suspend further action.

What did the court decide?

Respondents directed to defer coercive proceedings pursuant to Ext.P6; petitioner permitted to pay overdue amount in six equated monthly instalments commencing from 20.07.2023 along with regular EMIs.

Arunkumar S. Vs 1. People’S Urban… — 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 C.S.DIAS

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TUESDAY, THE 20TH DAY OF JUNE 2023 / 30TH JYAISHTA, 1945
WP(C) NO. 5556 OF 2023

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PETITIONER:

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ARUNKUMAR S.
AGED 30 YEARS

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S/O.SASEENDRAKUMAR, PADMAVILASAM VEEDU, M.K.M. NAIR
ROAD, PALARIVATTOM P.O., KOCHI., PIN - 682025

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BY ADV I.SHEELA DEVI

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RESPONDENTS:

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1 PEOPLE'S URBAN CO-OPERATIVE BANK LTD. NO.51. HEAD OFFICE, TRIPUNITHURA BRANCH, TRIPUNITHURA, ERNAKULAM DISTRICT, REPRESENTED BY THE GENERAL MANAGER., PIN - 682301

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2 AUTHORISED OFFICER

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PEOPLE'S URBAN CO-OPERATIVE BANK LTD. NO.51, HEAD
OFFICE, TRIPUNITHURA BRANCH, TRIPUNITHURA, ERNAKULAM
DISTRICT., PIN - 682031

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BY ADV DEVAPRASANTH P.J

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
20.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 5556 OF 2023

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Dated this the 20^th day of June, 2023

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JUDGMENT

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The writ petition is filed to direct the respondents to permit the petitioner to pay the overdue amount in equated monthly instalments and regularise the loan account.

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The petitioner had availed financial assistance from the second respondent – Bank - by creating an equitable mortgage. Due to unforeseen circumstances, the petitioner could not pay the instalments on time. The respondents have initiated proceedings against the secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (in short, ‘Act’). The petitioner is ready to pay the overdue amount in equated monthly

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WP(C) NO. 5556 OF 2023

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instalments. Hence, the writ petition.

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Heard; Smt. I.Sheela Devi, the learned counsel appearing for the petitioner and Sri.Devaprasanth P.J, the learned counsel appearing for the respondents.

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Sri.Devaprasanth P.J, on instructions,

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submitted that as on 13.6.2023 the overdue amount is Rs.5,27,473/-. The respondents are willing to permit

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the petitioner to pay off the overdue amount in six equated monthly instalments. The said submission is recorded.

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The learned counsel appearing for the petitioner submitted that the petitioner is ready to accept the above offer.

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Having considered the pleadings and materials on record, the submissions made by the learned counsel

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appearing for the parties, the consensus arrived at between the parties and to provide the petitioner one

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WP(C) NO. 5556 OF 2023

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last opportunity to clear off the liability, I am inclined to exercise the powers of this Court under Article 226 of

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the Constitution of India and entertain the writ petition.

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Resultantly, I dispose of the writ petition in the following manner:

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(i) The respondents are directed to defer further coercive proceedings pursuant to Ext.P6, to enable the petitioner to pay the overdue amount in equated monthly instalments as stated below.

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(ii) The petitioner is permitted to pay the overdue amount as stated above with future interest and cost to the first respondent – Bank – in six equated monthly instalments commencing from 20.7.2023 along with regular EMIs.

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(iii) Needless to mention, if the petitioner commits default of the condition ordered above, the petitioner would lose the benefit of this judgment and the

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WP(C) NO. 5556 OF 2023

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respondents would be at liberty to proceed with recovery proceedings from the stage it presently stands.

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(iv) It is made clear that, no further application for

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modification/extension of time shall be entertained.

SD/-

C.S.DIAS, JUDGE

rmm21/6/2023

WP(C) NO. 5556 OF 2023

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APPENDIX OF WP(C) 5556/2023

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PETITIONER EXHIBITS

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`Exhibit-P1`	`TRUE COPY OF THE RECEIPT DATED` `03.08.2016 FOR RS.26,000/- REMITTED BY` `THE PETITIONER TO 1ST RESPONDENT BANK.`
`Exhibit-P2`	`TRUE COPY OF THE RECEIPT DATED` `07.08.2019 FOR RS.50,000/- REMITTED BY` `THE PETITIONER TO 1ST RESPONDENT BANK.`
`Exhibit-P3`	`TRUE COPY OF THE RECEIPT DATED` `11.10.2019 FOR RS.25,000/- REMITTED BY` `THE PETITIONER TO 1ST RESPONDENT BANK.`
`Exhibit-P4`	`TRUE COPY OF THE RECEIPT DATED` `26.12.2019 FOR RS.8,000/- REMITTED BY` `THE PETITIONER TO 1ST RESPONDENT BANK.`
`Exhibit-P5`	`TRUE COPY OF THE RECEIPT DATED` `26.02.2020 FOR RS.20,000/- REMITTED BY` `THE PETITIONER TO 1ST RESPONDENT BANK.`
`Exhibit-P6`	`TRUE COPY OF THE NOTICE NO.ML 45/20/PV` `DATED 25.01.2023 DESCRIBING SCHEDULE OF` `THE PROPERTY MORTGAGED BY THE PETITIONER` `ISSUED BY THE 1ST RESPONDENT BANK TO THE` `PETITIONER.`
`Exhibit-P7`	`TRUE COPY OF THE ACCOUNT STATEMENT FOR` `THE PERIOD 01.01.2020 TO 15.02.2023` `ISSUED BY THE 1ST RESPONDENT BANK TO THE` `PETITIONER`

Arunkumar S. v. 1. People’S Urban Co-Operative Bank Ltd. NO.51.

Case brief

What is this about?

What did the court decide?

Arunkumar S. v. 1. People’S Urban Co-Operative Bank Ltd. NO.51.

Case brief

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What did the court decide?

What the court decided

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Issues for consideration

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Parties & counsel

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