A housing-loan borrower facing coercive recovery proceedings under SARFAESI sought time to clear arrears caused by pandemic-related default. The court disposed of the petition directing an upfront payment of ₹2 lakhs and clearance of the balance overdue amount in ten equal monthly instalments, deferring coercive proceedings on compliance.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 14TH DAY OF FEBRUARY 2024 / 25TH MAGHA, 1945
WP(C) NO. 1160 OF 2024
PETITIONER:
SAMJITH RAJAN AGED 35 YEARS, S/O P.T.RAJAN, DRISYA, NOTTAYAMVILA, VELLARADA.P.O., THIRUVANANTHAPURAM, PIN – 695505.
BY ADVS. R.HARIKRISHNAN G.SUDHEER SMRITHI S.S.
RESPONDENTS:
PNB HOUSING FINANCE LTD. VAZHUTHACAUD BRANCH, DEVELOPMENT AUTHORITY, 1ST FLOOR, KEK TOWER, F1 OPP.TO TRIDA, VAZHUTHACAUD, THIRUVANANTHAPURAM, PIN - 695010 REPRESENTED BY ITS AUTHORISED OFFICER.
BY ADVS. SRI.P.PAULOCHAN ANTONY P SRI.SREEJITH K.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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J U D G M E N T
Dated this the 14th day of February, 2024
The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the PNB Housing Finance Limited to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
the financial advance, he could not pay the repayment instalments promptly later due to Covid-19 pandemic. The
repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner.
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respondent to permit the petitioner to repay the overdue amounts in easy monthly instalments, the respondent was not yielding. The authorities, instead, started coercive proceedings, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Security Interest (Enforcement) Rules, 2002 and issued Ext.P1 notice.
to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondent is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, he will be put to untold hardship and loss.
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made by the petitioner. On behalf of the respondent, it is submitted that the loan was given to the petitioner in the year 2019. The petitioner committed default in repaying the loan.
if the petitioner is ready and willing to make a substantial
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payment soon and remit the balance overdue amount immediately thereafter, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the respondent from the petitioner as on 14.02.2024 is ₹33,09,525/- and the overdue amount is ₹8,18,919/-.
petitioner has been making the repayment and maintaining the loan account initially. The default in repayment occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the respondent.
am inclined to dispose of the writ petition giving a short
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and reasonable time to the petitioner to clear off the liability.
the following directions:
(i) The petitioner shall remit an amount
of ₹2 lakhs on or before 29.02.2024.
(ii) The petitioner shall remit the balance overdue amount in subsequent consecutive 10 equal monthly instalments thereafter, along with accruing interest and other administrative charges, if any.
(iii) If the petitioner commits default in making payments as directed above, the respondent will be at liberty to continue with coercive proceedings against the
petitioner in accordance with law.
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(iv) The petitioner shall also pay current EMIs along with the aforesaid payments.
(v) If the petitioner makes payments as
directed above, coercive proceedings, if any, against the petitioner shall stand deferred.
Sd/- N. NAGARESH
JUDGE
ams
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APPENDIX OF WP(C) 1160/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DATED 4.1.2024 Exhibit P2 TRUE COPY OF THE LOAN CLOSURE STATEMENT WHICH WAS GIVEN TO THE PETITIONER
1 issue framed by the court
Whether coercive SARFAESI recovery proceedings against the petitioner's secured assets could be deferred while he clears overdue loan amounts in instalments.
2 provisions across 2 enactments
Samjith Rajan
PNB Housing Finance Ltd., Vazhuthacaud Branch
N.NAGARESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
