The court disposed of the writ petition challenging coercive recovery proceedings by granting the petitioner time to pay arrears in instalments, deferring further action subject to compliance with payment directions.
Direction to pay Rs. 3 lakhs by 25.03.2024 and balance in 10 equal monthly instalments; coercive proceedings deferred.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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. 577 OF 2024
PETITIONER:
ANAS .A AGED 35 YEARS, S/O ABOOBAKER KUTTY, THE SOLE PROPRIETOR, A J BRICKS AND INTERLOCK 16690, RESIDING AT VARUVILA VEEDU, MEKKONE, CHANDANATHOPPU P.O, PERINAD, KOLLAM, PIN – 691014.
BY ADV JOMY K. JOSE
RESPONDENTS:
1 THE BRANCH MANAGER KOTAK MAHINDRA BANK, KOLLAM BRANCH, IN LOAN AGREEMENT NO. CV4624301 AGC COMPLEX, BEACH ROAD, PALLITHOTTAM, MUNDAKKAL VILLAGE, KOLLAM – 691001.
2 THE AUTHORIZED OFFICER KOTAK MAHINDRA BANK LIMITED, KOLLAM BRANCH, IN LOAN ACCOUNT NO CV4624301 AGC COMPLEX, BEACH ROAD, PALLITHOTTAM, MUNDAKKAL VILLAGE, KOLLAM, PIN – 691001.
BY ADV JEEJAN T
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 Kotak Mahindra Bank to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
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 financial crisis. The repayment of loan fell into arrears. It
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happened due to reasons beyond the control of the petitioner.
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, he will be put to untold hardship
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and loss.
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 2022. The petitioner committed default in repaying the loan.
required him 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 Ext.P2 notice was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
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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 04.03.2024 is ₹51,27,550/-
and the overdue amount as on 04.03.2024 is ₹8,66,750/-.
Standing Counsel representing the Bank.
the loan account initially. The default in repayment 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.
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following directions:
(i) The petitioner shall remit an amount
of ₹3 lakhs on or before 25.03.2024.
(ii) The petitioner shall remit the balance overdue amount in subsequent consecutive
10 equal monthly instalments thereafter,
along with accruing interest and other Bank charges, if any.
(iii) If the petitioner commits default in
making payments as directed above, the respondents will be at liberty to continue
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with coercive proceedings against the petitioner in accordance with law.
(iv) The petitioner shall also pay current EMIs along with the aforesaid payments.
(v) 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) 577/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE CERTIFICATE OF REGISTRATION OF VEHICLE NUMBER KL 24 V 6180 DATED 14-06-2022 Exhibit P2 A TRUE COPY OF THE LOAN RECALL NOTICE ISSUED TO THE PETITIONER BY KOTAK MAHINDRA BANK DATED 04-06-2022
1 issue framed by the court
Whether the petitioner can be granted time to clear loan arrears in instalments instead of immediate coercive proceedings?
2 provisions across 2 enactments
Anas .A
The Branch Manager Kotak Mahindra Bank, Kollam Branch
The Authorized Officer Kotak Mahindra Bank Limited, Kollam Branch
N. Nagares
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
N. Nagares
Parties & counsel
