Disposed

Kamala M, v. the Balussery Co-Operative Urban Bank Limited

Kerala HC22 May 2024WP(C)/2753/2024

Case brief

AI extract

What is this about?

A borrower facing SARFAESI enforcement over an unpaid business loan sought instalment-based repayment. The Bank agreed to a short breathing time. The Court allowed clearance of the overdue amount in ten monthly instalments, deferring coercive proceedings so long as no default occurred.

What did the court decide?

Overdue ₹15,82,134 to be paid in 10 monthly instalments with interest and current EMIs; coercive proceedings deferred if paid as directed.

Kamala M, Vs the Balussery Co-Operative Urban Bank Limited — Banking and Recovery | Kerala HC (2024)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE MR.JUSTICE N.NAGARESH

¶4

WEDNESDAY, THE 22ND DAY OF MAY 2024 / 1ST JYAISHTA, 1946

¶5

WP(C) NO. 2753 OF 2024

¶6

PETITIONER:

¶7

KAMALA M,
AGED 62 YEARS, W/O KUNHIKANNAN,
MEPPANNONA HOUSE, BALUSSERY, ORAVIL,
KANHIKAVE, KOZHIKODE DISTRICT,
PIN – 673 323.

¶8

BY ADVS.

¶9

P.T.SHEEJISH
A.ABDUL RAHMAN (A-1917)
APARNA V. DEVASSIA

¶10

RESPONDENTS:

¶11

1 THE BALUSSERY CO-OPERATIVE URBAN BANK LIMITED, LL.227, BALUSSERY BRANCH, REPRESENTED BY ITS BRANCH MANAGER, URBAN BANK BUILDING, NEAR BUS STAND, BALUSSERY (PO), KOZHIKODE DISTRICT, PIN – 673 612.

¶12

2AUTHORIZED OFFICER,
THE BALUSSERY CO-OPERATIVE URBAN BANK LTD.,
BALUSSERY BRANCH, URBAN BANK BUILDING,
NEAR BUS STAND, BALUSSERY,
KOZHIKODE DISTRICT, PIN – 673 612.

¶13

BY ADVS.

¶14

M.VIVEK RABINDRANATH
V.T.MADHAVANUNNI

¶15

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 22.05.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:

¶16

W.P.(C) No. 2753 of 2024

¶17

: 2 :

¶18

JUDGMENT

¶19

Dated this the 22^nd day of May, 2024

¶20

The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Balussery 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.

¶21

The Bank paid ₹20 lakhs to the petitioner as Business Loan in the year 2019. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, she could not pay the repayment instalments promptly later. The repayment of loan fell into arrears later. It happened due to reasons beyond the control of the petitioner.

¶22

Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy monthly instalments, the Bank authorities were not yielding.

¶23

W.P.(C) No. 2753 of 2024

¶24

: 3 :

¶25

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.P2 notice.

¶26

The petitioner states that she is still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner,she will be put to untold hardship and loss.

¶27

Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner. On behalf of the respondents, it is submitted that the loan was given to the petitioner in the year 2019. The petitioner committed default in repaying the loan.

¶28

The Bank repeatedly reminded the petitioner and required her to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no

¶29

W.P.(C) No. 2753 of 2024

¶30

: 4 :

¶31

other go, than to proceed against the petitioner invoking, the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Ext.P2 was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

¶32

The Standing Counsel, however, submitted that if the petitioner is ready and willing to make a substantial 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 Bank from the petitioner is 27,81,974/- and the overdue amount as on₹ 22.05.2024 is 15,82,134/-.₹

¶33

I have heard the learned Counsel for the petitioner and the learned Standing Counsel representing the Bank.

¶34

The specific case of the petitioner is that the petitioner has been making the repayment and maintaining

¶35

W.P.(C) No. 2753 of 2024

¶36

: 5 :

¶37

the loan account initially. The default in repayment of the account occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.

¶38

In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioner to clear off her liability.

¶39

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

¶40

(i) The petitioner shall remit the overdue of ₹15,82,134/in 10 equal and consecutive monthly instalments along with accruing interest and other Bank charges, if any. First of such instalments shall be paid on or before 24.06.2024.

¶41

(ii) If the petitioner commits single default in making payments as directed above, the respondents will be at liberty to continue

¶42

W.P.(C) No. 2753 of 2024

¶43

: 6 :

¶44

with coercive proceedings against the petitioner in accordance with law.

¶45

(iii) The petitioner shall also pay current EMIs along with the aforesaid payments.

¶46

(iv) If the petitioner pays the instalments as directed above, any coercive proceedings against the petitioner shall stand deferred.

¶47

Sd/- N. NAGARESH JUDGE

¶48

AMR

¶49

W.P.(C) No. 2753 of 2024

¶50

: 7 :

¶51

APPENDIX OF WP(C) 2753/2024

¶52

PETITIONER’S EXHIBITS

¶53

Exhibit P1THE TRUE COPY OF THE CERTIFICATE OF
THE MEDICAL OFFICER.

¶54

Exhibit P2TRUE COPY OF NOTICE DATED 08/01/2024
ISSUED BY THE 2ND RESPONDENT.

¶55

Exhibit P3THE TRUE COPY OF THE NOTICE ISSUED BY
THE ADVOCATE COMMISSIONER DATED
30/12/2023 ISSUED BY THE RESPONDENTS.

Kamala M, v. the Balussery Co-Operative Urban Bank Limited

Case brief

What is this about?

What did the court decide?

Kamala M, v. the Balussery Co-Operative Urban Bank Limited

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Somu P.M Vs The Manager Kerala state Co-operative Bank

Sobin Mathew, Vs the Regional Transport Officer

P.D James, Vs District Collector

Binu Joseph Vs Dcb Bank Ltd.

Joys Enterprises Pvt. Limited, Vs the Kerala State Co-Operative Bank

Abdulkhader C.P., Vs South Indian Bank Limited