Allowed

Mahin.K., v. the Authorized Officer

Kerala HC14 Mar 2023WP(C)/840/2023

Case brief

AI extract

What is this about?

Though the petitioner faced property auction due to credit default and the sale was not confirmed, the High Court permitted the petitioner to clear the total loan liability including interest in twelve monthly instalments, directing the bank to accept the repayment and keep coercive proceedings in abeyance.

What did the court decide?

Directs respondent bank to accept repayment of Rs.11,22,867/- plus interest/costs in 12 monthly instalments, keep coercive proceedings in abeyance, and cancel the 29.04.2022 auction sale upon full cle

Mahin.K., Vs the Authorized 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 GOPINATH P.

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TUESDAY, THE 14TH DAY OF MARCH 2023 / 23RD PHALGUNA, 1944
WP(C) NO. 840 OF 2023

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PETITIONER:

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MAHIN.K,
AGED 62 YEARS,
S/O ABDULLA, SHIHAB MANZIL, KOLIYADUKKAM,
PERUMBALA P.O, KASARAGOD DISTRICT, PIN – 671 317.
BY ADVS.
V.SHYAM
P.ARUN
SAHEERA K.

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RESPONDENTS:

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1THE AUTHORIZED OFFICER,
KASARAGOD PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK, NO. F.F. 113 , KASARAGOD TALUK,
KASARAGOD – 671 121.
2THE MANAGER,
KASARAGOD PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK, NO. F.F. 113 , KASARAGOD TALUK,
KASARAGOD - 671 121.
BY ADVS.
PUSHPARAJAN KODOTH
K.JAYESH MOHANKUMAR(J-511)
VANDANA MENON(K/153/2007)
VIMAL VIJAY(K/000214/2018)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
14.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 840 OF 2023

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JUDGMENT

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The petitioner availed several credit facilities from the respondent Bank, including two business loans and an agricultural loan. On default being committed, proceedings were taken under the Kerala State Co-operative Agricultural and Rural Development Bank Act, 1984 (in short ‘CARD Act’) and the property of the petitioner was brought to sale. Since there were no bidders in the auction conducted by the Bank, the Bank itself purchased the property on 29.04.2022. However, the said sale has not been confirmed.

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The learned counsel for the petitioner submits that the petitioner may be permitted to clear the entire liability in instalments.

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The learned counsel appearing for the respondent Bank would submit that the only remedy now available to the petitioner is to file an application for setting aside the sale, in which case the petitioner will have to deposit the entire amount plus 5% in terms of the provisions contained in Section 21 of the CARD Act. It is submitted that the petitioner cannot therefore be permitted to clear the liability in instalments. The learned counsel appearing for the respondent Bank however

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WP(C) NO. 840 OF 2023

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submits that there is a One Time Settlement scheme now in

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operation "നവകേ�രളീയംകുടിശ്ശി�നിവാരണം - 2023” and if the petitioner to opts to file an application under the provisions of that scheme, the application of the petitioner can be considered, in accordance with the terms contained in that scheme.

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Having heard the learned counsel for the petitioner and the learned counsel appearing for the respondent Bank, I am of the opinion that the petitioner can be permitted to clear the total liability, which is stated to be Rs.11,22,867/- in respect of all the credit facilities put together, in twelve monthly instalments. In the meanwhile, it will also be open to the petitioner to approach the Bank for settlement in in terms of the 2023 scheme and if that settlement is permitted, the petitioner may opt to settle the liability as permitted by the Bank.

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Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.11,22,867/- (Rupees eleven lakhs twenty two thousand eight hundred and sixty seven only) along with any accrued interest, costs and charges charges from the petitioner on the following conditions:

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WP(C) NO. 840 OF 2023

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(i)The outstanding amount of Rs.11,22,867/- (Rupees eleven lakhs twenty two thousand eight hundred and sixty seven only) along with any accrued interest, costs and charges shall be repaid in 12 equated monthly instalments.

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(ii)The first instalment shall be paid on or before 27.03.2023 and the subsequent instalments shall be paid on or before the last working day of every succeeding month.

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(iii) 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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(iv) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

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At the option of the petitioner, the petitioner may also seek to settle the liability in terms of the provisions contained in the 2023 scheme. If the petitioner clears the entire liability in instalments as permitted in this judgment or if the petitioner clears the liability under the 2023 scheme, the sale held on 29.04.2022 will be cancelled.

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The writ petition is disposed of as above.

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Sd/GOPINATH P. JUDGE

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WP(C) NO. 840 OF 2023

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APPENDIX OF WP(C) 840/2023

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PETITIONER EXHIBITS
Exhibit P1TRUE COPY OF THE MEDICAL REPORTS OF THE
PETITIONER ISSUED BY LOURDE HOSPITAL ,
KANNUR
Exhibit P2TRUE COPY OF THE MEDICAL REPORTS ISSUED
BY KIMS SUNRISE HOSPITAL KASARAGOD
Exhibit P3TRUE COPY OF THE DEMAND NOTICE ISSUED
BY THE 2ND RESPONDENT
Exhibit P4TRUE COPY OF THE SALE NOTICE DATED
17.03.2022.

Mahin.K., v. the Authorized Officer

Case brief

What is this about?

What did the court decide?

Mahin.K., v. the Authorized Officer

Case brief

What is this about?

What did the court decide?

What the court decided

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