Disposed

Shaji K P, v. Sundaram Home Finance Limited

Kerala HC11 Jan 2024WP(C)/402/2024

Case brief

AI extract

What is this about?

Borrower sought relief from SARFAESI coercive recovery proceedings after defaulting on mortgage and top-up loans. The Court disposed of the petition directing payment of the overdue amounts in structured instalments, with coercive proceedings deferred on compliance.

What did the court decide?

Petitioner permitted to pay Rs.5 lakhs by 31.01.2024 plus balance overdue in eight monthly instalments with current EMIs; coercive proceedings deferred on compliance.

Shaji K P, Vs Sundaram Home Finance Limited — Banking and Recovery | 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 N.NAGARESH

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THURSDAY, THE 11TH DAY OF JANUARY 2024 / 21ST POUSHA, 1945

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WP(C) NO. 402 OF 2024

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PETITIONER:

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SHAJI K P
AGED 64 YEARS
S/O. PARAMESWARAN, KOLLERIL HOUSE,
UDAYANAPURAM P.O, VAIKOM, KOTTAYAM., PIN – 686143

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BY ADVS.
S.MUMTAZ
ALISHA ASLAM
AMINA RUBY FAIZAL
MAMLU P.S.

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RESPONDENT:

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SUNDARAM HOME FINANCE LIMITED
REP BY THE AUTHORIZED OFFICER 2 ND FLOOR,
ELIZABETH ALEXANDER MEMORIAL BUILDING MARINE
DRIVE, KOCHI, KERALA, PIN – 682031

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SMT.S. AMBILY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 11.01.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:

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WP(C) No.402 of 2024

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JUDGMENT

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Dated this the 11^th day of January, 2024

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The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Sundaram Home Finance 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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The respondent paid ₹55 lakhs towards Mortgage Loan and 20 lakhs towards Top up Loan₹ to the petitioner in the year 2013. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the repayment instalments promptly later due to huge loss in business due to the economical impact of the Covid-19 pandemic. The repayment of loans fell into arrears later. It happened due to reasons beyond the control of the petitioner.

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WP(C) No.402 of 2024

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Though the petitioner requested the 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 Exts.P2 to P4 notices.

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The petitioner states that he is still in a position to clear the overdue amounts towards the loans, 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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Standing Counsel entered appearance on behalf of

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the respondent and denied all the statements made by the petitioner. On behalf of the respondent, it is submitted that the loans were given to the petitioner in the year 2013. The

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WP(C) No.402 of 2024

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petitioner committed default in repaying the loans.

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The respondent repeatedly reminded the petitioner and required him to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the respondent had no 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 Exts.P2 to P4 were issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the respondent.

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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 respondent from the petitioner as on 11.01.2024 is ₹51,96,160/- and the

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WP(C) No.402 of 2024

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overdue amount as on 11.01.2024 is ₹21,04,999/-.

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I have heard the counsel for the petitioner and the Standing Counsel representing the respondent.

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The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan accounts initially. The default in repayment of the loans 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.

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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 the liability.

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

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(i) The petitioner shall remit 5 lakhs on or₹ before 31.01.2024 and the balance overdue amount in eight consecutive and equal monthly installments along with accruing

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WP(C) No.402 of 2024

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interest and other Bank charges, if any.

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(ii) If the petitioner commits single default

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in making payments as directed above, the respondent will be at liberty to continue with

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the coercive proceedings against the petitioner in accordance with law.

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

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(iv) If the petitioner makes payments as directed above, coercive proceedings, if any,

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against the petitioner shall stand deferred.

Sd/-

N.NAGARESH

JUDGE

spk

WP(C) No.402 of 2024

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APPENDIX OF WP(C) 402/2024

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PETITIONER EXHIBITS

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Exhibit P 1TRUE COPY OF DEMAND NOTICE DATED
01/05/2023 ISSUED BY THE RESPONDENT TO
THE PETITIONER

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Exhibit P 2TRUE COPY OF THE POSSESSION NOTICE
DATED 26/07/2023
Exhibit P 3TRUE COPY OF POSSESSION NOTICE DATED
26/07/2023 ISSUED BY THE RESPONDENT TO
THE PETITIONER
Exhibit P 4TRUE COPY OF THE AFFIXED POSSESSION
NOTICE DATED 27/12/2023

Shaji K P, v. Sundaram Home Finance Limited

Case brief

What is this about?

What did the court decide?

Shaji K P, v. Sundaram Home Finance Limited

Case brief

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