Allowed

Pushpy George v. the Kerala State Co-Operative Bank Ltd.

Kerala HC21 Feb 2024WP(C)/542/2024

Case brief

AI extract

What is this about?

The High Court disposed of a writ petition filed against coercive recovery proceedings under SRA Act by directing the petitioner to clear overdraft dues in eight monthly installments, deferring proceedings if paid. coercive proceedings otherwise continue.

What did the court decide?

Overdue amount of ₹2,53,303/- to be paid in eight monthly installments; coercive proceedings deferred upon compliance.

Pushpy George Vs the Kerala State Co-Operative Bank Ltd. — 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 21^ST DAY OF FEBRUARY 2024/2ND PHALGUNA, 1945 WP(C) NO. 542 OF 2024

¶5

PETITIONER:

¶6

PUSHPY GEORGE, AGED 63 YEARS, W/O. V.A. GEORGE, THAMARAPARAMBIL, MANNAM ROAD, EDAPPILLY NORTH, PIN – 682024

¶7

BY ADVS. DHANYA P.ASHOKAN M.R.VENUGOPAL S. MUHAMMAD ALIKHAN

¶8

RESPONDENTS:

¶9

1 THE KERALA STATE CO-OPERATIVE BANK LTD., REGIONAL OFFICE, SAHAKARANA SATHABDHI MANDIRAM, KOVILAKATHUMPADAM, THIRUVAMBADY P.O., THRISSUR, REPRESENTED BY THE AUTHORISED OFFICER, PIN - 680022 2 THE MANAGER, THE KERALA STATE CO-OPERATIVE BANK LTD., PACHALAM BRANCH, PACHALAM, PIN – 682012

¶10

BY ADV N. RAGHURAJ

¶11

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C) No.542/2024

: 2 :

JUDGMENT

Dated this the 21^st day of Februar y, 2024

¶16

The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Kerala State Co-operative Bank to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

¶17

The Bank paid ₹25 lakhs to the petitioner as E-cap Loan in the year 2015. 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 due to financial difficulties. The repayment of loan fell into arrears later. It happened due to reasons beyond the control of the petitioner.

¶18

W.P.(C) No.542/2024

¶19

: 3 :

¶20

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. 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 and P3 notices.

¶21

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.

¶22

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

¶23

W.P.(C) No.542/2024

¶24

: 4 :

¶25

the loan was given to the petitioner in the year 2015. The petitioner committed default in repaying the loan.

¶26

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 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 and P3 notices were issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

¶27

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 as on 13.02.2024 is ₹15,35,455/-

¶28

W.P.(C) No.542/2024

¶29

: 5 :

¶30

and the overdue amount as on 13.02.2024 is ₹2,53,303/-.

¶31

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

¶32

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

¶33

In the facts and circumstances of the case, I am

¶34

inclined to dispose of the writ petition giving a short and reasonable time to the petitioner to clear off the liability.

¶35

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

¶36

(i) The petitioner shall remit the overdue amount of ₹2,53,303/- in eight consecutive and equal monthly installments along with accruing interest and other Bank charges,

¶37

W.P.(C) No.542/2024

¶38

: 6 :

¶39

if any. First of such installments shall be paid on or before 21.03.2024.

¶40

(ii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioner in accordance with law.

¶41

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

¶42

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

¶43

Sd/-

¶44

N. NAGARESH JUDGE

W.P.(C) No.542/2024

: 7 :

APPENDIX OF WP(C) 542/2024

¶49

PETITIONER'S EXHIBITS:

¶50

Exhibit P1	TRUE	COPY OF THE STATEMENT DATED
	03/01	/2024 OF THE PASSBOOK OF THE
	LOAN 2024.	ACCOUNT WHICH IS UPDATED UP TO
Exhibit P2	TRUE	COPY OF THE NOTICE DATED
	08/09 RESPO	/2023 ISSUED BY THE 1ST NDENT TO THE PETITIONER.
Exhibit P3	TRUE	COPY OF THE NOTICE DATED
	28/12	/2023 ISSUED BY THE 1ST
	RESPO	NDENT TO THE PETITIONER.

Pushpy George v. the Kerala State Co-Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

Pushpy George v. the Kerala State Co-Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Mathai @ T.J. Mathew Vs Managing Director, Union Bank of India

Steephan Vs the Regional Transport Authority

Dr.Thampi Raj Vs the Branch Manager

Muhammed Noufal Vs the Authorized Officer

Usman .K Vs the Divisional Manager

Pinky.Kv Vs the Authorised Officer