Allowed

Biju a Mathew v. Cheruthazham Service Co-Operative Bank

Kerala HC14 Feb 2024WP(C)/2079/2024

Case brief

AI extract

What is this about?

In a writ petition, the petitioner sought directions for an orderly settlement of a defaulted bank loan. The Court ordered the bank to issue a statement of dues, imposing an obligation on the petitioner to repay in fifteen monthly installments while keeping coercive recovery proceedings in abeyance.

What did the court decide?

Bank to provide statement of dues; Petitioner to clear debt in fifteen monthly installments commencing 15.3.2024; Recovery proceedings stayed pending full payment.

Biju a Mathew Vs Cheruthazham Service… — Contract and Commercial Disputes | Kerala HC (2024)

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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 RAJA VIJAYARAGHAVAN V

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WEDNESDAY,THE14THDAYOFFEBRUARY2024/25THMAGHA,1945

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WP(C)NO.2079OF2024

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PETITIONER:

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BIJUAMATHEW,AGED42YEARS,S/OMATHEW,
ARACKALHOUSE,VILAYANCODEP.O.,KANNURDISTRICT,
PIN-670504
BYADVS.CHRISTINEMATHEW
T.C.SIBI
AISWARYAEJVETTIKOMPIL
SENCPUTHUPPARAMPIL

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RESPONDENTS:

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1 CHERUTHAZHAM SERVICE CO-OPERATIVE BANK LTD.NO.F 747, PILATHARA P.O., KANNUR DISTRICT REPRESENTED BY ITS SECRETARY, PIN - 670501

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2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL),KANNUR THAVAKKARA, KANNUR, PIN - 670002

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3 ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES, PAYYANNUR, ADMINISTRATION OFFICE OF THE ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES, PAYYANNUR, KANNUR DISTRICT, PIN - 670307

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4 SPECIAL SALE OFFICER, OFFICE OF THE ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES, PAYYANNUR, KANNUR DISTRICT, PIN - 670307

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SRIIVPRAMOD,SCFORCHERUTHAZHAMSERVICE
CO-OPERATIVEBANK

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THISWRITPETITION(CIVIL)HAVINGCOMEUPFORADMISSION
ON14.02.2024,THECOURTONTHESAMEDAYDELIVEREDTHE
FOLLOWING:

W.P.C 2079 of 2024

JUDGMENT

The petitioner is stated to have availed a loan for a sum of Rs.30 lakhs from the respondent Bank in the year 2018. The tenure of the loan was 5 years. The petitioner states that due to circumstances that could not be overseen, the petitioner suffered financial crisis and could not make remittances on time. When default was committed, ARC proceedings were initiated, and award has been obtained. He has now been served with Ext.P2 demand notice threatening the sale of mortgaged property. It is in the afore circumstances that this writ petition is filed seeking issuance of directions to the respondent bank to grant an opportunity to the petitioner to clear off the dues.

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The learned Standing Counsel appearing for the respondents submits that the total outstanding as of the date due from the petitioner is about Rs.50,06,810/- lakhs. It is submitted that the loan was availed in the year 2018 and that the bank is not averse to granting the petitioner an opportunity to clear the outstanding. However, he submits that not more than four installments be granted.

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Upon careful consideration of the submissions made by both

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W.P.C 2079 of 2024

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parties, it is evident that the petitioner owes in excess of Rs.50 lakhs to the 1^st respondent Bank. The respondents, very fairly, have agreed to permit the petitioner to settle these debts through a limited number of installments. As a measure of last resort, I am inclined to issue directions to facilitate the petitioner in discharging his financial obligations to the 1^st respondent. This approach is deemed necessary to provide a structured pathway for the petitioner to clear off his monetary liabilities in a manageable manner.

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Resultantly, this writ petition is ordered, and the following directions are issued:

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(i) The petitioner shall approach the 1^st respondent with a request to inform him of the details of the outstanding amount together with interest and other charges due from him in respect of the loan account. If such a request is made within two weeks from the date of receipt of a copy of this judgment, the 1^st respondent shall forthwith issue a statement in writing detailing the amounts.

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(ii) On receipt of such a statement, the petitioner shall pay the amounts shown therein in fifteen (15) equal monthly installments commencing from 15.3.2024, and continue to pay the same on every successive month

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W.P.C 2079 of 2024

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thereafter until the entire loan is wiped off.

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(iii) If the amounts are diligently paid in terms of the directions above, coercive proceedings initiated against him by the respondents for the realization of the amount shall be kept in abeyance.

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(iv) It is made clear that if the petitioner commits default of any two installments, he will lose the benefit of this judgment, and the concerned respondents will be free to continue the recovery proceedings against him from the stage at which it presently stands and recover the entire amount along with interest and other charges.

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(v) It is further made clear that no application for an extension of time will be entertained.

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Sd/- RAJA VIJAYARAGHAVAN V JUDGE

IAP

W.P.C 2079 of 2024

PETITIONER’SEXHIBITS:

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ExhibitP1TRUECOPYOFARCNO.3211/2022DATED29.09.2022
FILEDBY1STRESPONDENTBANK

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ExhibitP2TRUECOPYOFNOTICEDATED01.11.2023ISSUEDBY3RD
RESPONDENT

Biju a Mathew v. Cheruthazham Service Co-Operative Bank

Case brief

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Biju a Mathew v. Cheruthazham Service Co-Operative Bank

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