Disposed

Beena Faizal v. the Autorized Officer

Kerala HC21 Aug 2023WP(C)/7733/2023

Case brief

AI extract

What is this about?

This writ petition, filed by a co-obligant against bank respondents under Section 13(2) of the SARFAESI Act, sought relief from coercive recovery proceedings. The court granted a short time for repayment, directing the petitioner to clear the overdue amount of approximately ₹19.93 lakhs in eight equal monthly installments starting 01.10.2023. Coercive proceedings were deferred contingent on compli

What did the court decide?

Jeopardy of coercive proceedings under SARFAESI Act deferred upon submission of the entire overdue amount of ₹19,93,461 plus interest in eight equal monthly installments, first one due on 01.10.2023.

Beena Faizal Vs the Autorized Officer — 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 N.NAGARESH

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MONDAY, THE 21^ST DAY OF AUGUST 2023 / 30TH SRAVANA, 1945

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WP(C) NO. 7733 OF 2023

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PETITIONER:

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BEENA FAIZAL, AGED 42 YEARS, W/O FAIZAL T, I THAIPPARAMBIL HOUSE, PATTIMATTOM, PALAMBARA PO PIN 686 518, KOOVAPPALLY, MEENACHIL TALUK, KOTTAYAM DISTRICT, PIN - 686518 BY ADV NISHIN GEORGE VIJAYABABU

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RESPONDENTS:

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1 THE AUTORIZED OFFICER, MEENACHIL EAST URBAN CO OPERATIVE BANK LTD NO 4266, POONJAR, THEKKARA PO, KOTTAYAM, PIN - 686582

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2 THE BRANCH MANAGER, MEENACHIL EAST, URBAN CO OPERATIVE BANK LTD NO 4266, PARATHODE BRANCH , PARATHODE PO, KOTTAYAM PIN, PIN - 686604 BY ADVS. MARIYA RAJAN SHINU J.PILLAI(K/223/2005) S.SUJA(K/87/2005) NESMEL DIVAN(K/002868/2022) DIYA BIJOY(K/001588/2023) SWETHA ELIZABETH SABOR(K/002896/2022)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.08.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C) No.7733/2023

: 2 :

J U D G M E N T

Dated this the 21^st day of August, 2023

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The husband of the petitioner borrowed a loan of ₹24 lakhs from the 2^nd respondent. The petitioner is the coobligant for the said loan. When remittances were defaulted, the respondents initiated proceedings under the SARFAESI Act. Ext.P3 notice has been issued by Advocate, in M.C No.622/2022 of the Chief Judicial Magistrate, Ernakulam.

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The petitioner states that she is willing to repay the amount and regularise the loan, provided the petitioner is given sufficient time. No notice of possession was issued by the 1^st respondent, contends the petitioner.

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Standing Counsel entered appearance and resisted the writ petition. The Standing Counsel submitted that the petitioner has been defaulting in loan remittances and in spite of repeated reminders the petitioner failed to clear the amount. An amount of ₹19,93,461/- as on

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W.P.(C) No.7733/2023

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: 3 :

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16.08.2023 is due from the petitioner. If the petitioner can remit the entire overdue amount within a short span of time, a breathing time can be granted to the petitioner, submitted the Standing Counsel for the respondents.

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Taking into consideration the fact that the petitioner is a co-obligant in respect of a loan amount taken by her husband, and taking into consideration the history of remittances made in the loan account, I am of the view that a short time can be granted to the petitioner for remitting the overdue amount and for regularising the loan account.

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The writ petition is therefore disposed of with the following directions:

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(1) The petitioner shall remit the entire overdue amount of ₹19,93,461/- as on 16.08.2023 along with accruing interest, in 8 equal monthly installments.

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(2) First of such monthly installments shall be paid on or before 01.10.2023. The remaining installments shall be paid on or before the said date in the seven consecutive months.

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W.P.(C) No.7733/2023

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: 4 :

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(3) If the petitioner commits default in repayment of

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any of the loan installments, the respondents will be at liberty

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to proceed against the petitioner in accordance with law.

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(4) It is made clear that the petitioner shall also pay

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the regular EMI amounts along with the afore installments.

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(5) If the petitioner makes remittances as directed

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above, coercive proceedings against the petitioner shall stand deferred.

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Sd/-

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N. NAGARESH JUDGE

sss

W.P.(C) No.7733/2023

: 5 :

APPENDIX OF WP(C) 7733/2023

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PETITIONER EXHIBITS EXHIBIT1 COPY OF THE DEMAND NOTICE DATED 20-12022 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 13(2) OF THE SARFAESI ACT EXHIBIT-P2 COPY OF THE RECEIPT DATED 4-3-2022 ISSUED BY THE 2ND RESPONDENT TO THE PRINCIPAL BORROWER EXHIBIT-P3 COPY OF THE NOTICE DATED 22-12-2022 ISSUED BY THE ADVOCATE COMMISSIONER IN MC NO 622/2022 OF THE HON'BLE CHIEF JUDICIAL MAGISTRATE KOTTAYAM

Beena Faizal v. the Autorized Officer

Case brief

What is this about?

What did the court decide?

Beena Faizal v. the Autorized Officer

Case brief

What is this about?

What did the court decide?

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