A writ petition by a borrower facing SARFAESI coercive recovery proceedings for an overdue term loan sought time to repay. The court disposed of it directing payment of the outstanding amount in eight monthly instalments, with coercive proceedings deferred if paid.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
MONDAY, THE 4TH DAY OF MARCH 2024 / 14TH PHALGUNA, 1945 WP(C) NO. 1580 OF 2024
PETITIONER:
SREEKALA
AGED 53 YEARS, D/O KOCHURAMAN, CHARUVILAVEEDU, DHAVALAKUZHI, MAYYANADU P.O., KOLLAM – 691303.
BY ADVS. K.V.ANIL KUMAR SWAPNA VIJAYAN RADHIKA S.ANIL
RESPONDENTS:
1 THE AUTHORIZED OFFICER QUILON CO-OPERATIVE URBAN BANK LTD., HEAD OFFICE, Y.M.C.A. ROAD, KOLLAM, KOLLAM DISTRICT, PIN – 691001.
BY ADV D.P.RENU
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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J U D G M E N T
Dated this the 4th day of March, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance made by the Quilon Co-operative Urban Bank Limited to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
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instalments promptly later due to financial constraints. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner.
permit the petitioner to repay the overdue amounts in easy monthly instalments, the Bank authorities were 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.
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petitioner, she will be put to untold hardship and loss.
of the Bank and denied all the statements made by the petitioner. On behalf of the respondent, it is submitted that the loan was given to the petitioner in the year 2016. The petitioner committed default in repaying the loan.
reasons to thwart the coercive proceedings initiated by the
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Bank.
the petitioner is ready and willing to make a substantial payment soon and remit the balance outstanding 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 Bank from the petitioner is ₹1,18,809/-.
Standing Counsel representing the Bank.
lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.
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following directions:
(i) The petitioner shall remit the outstanding amount of ₹1,18,809/- in eight equal and consecutive monthly instalments thereafter, along with accruing interest and other Bank charges, if any. The first instalment shall be paid on or before 04.04.2024.
(ii) If the petitioner commits default in making payments as directed above, the respondent will be at liberty to continue with
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coercive proceedings against the petitioner
in accordance with law.
(iii) 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) 1580/2024
PETITIONER'S EXHIBITS Exhibit-P1 A TRUE COPY OF THE NOTICE GIVEN BY THE ADVOCATE COMMISSIONER DATED 15.09.2023
Exhibit-P2 A TRUE COPY OF THE LETTER GIVEN TO THE 1ST RESPONDENT BANK DATED 26.12.2023
1 issue framed by the court
Whether the petitioner could be permitted to clear the overdue loan dues in instalments so that coercive SARFAESI recovery proceedings are deferred.
2 provisions across 2 enactments
SREEKALA
THE AUTHORIZED OFFICER QUILON CO-OPERATIVE URBAN BANK LTD.
THE BRANCH MANAGER QUILON CO-OPERATIVE URBAN BANK LTD., MUNDAKKAL BRANCH
N.NAGARESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
