Allowed

Sajitha.C.K v. Punjab National Bank

Kerala HC15 Jan 2024WP(C)/736/2024

Case brief

AI extract

What is this about?

The High Court of Kerala disposed of a writ petition challenging coercive recovery proceedings initiated by Punjab National Bank under the SARFAESI Act against a borrower loaning defaulting applicant. The Court granted a temporary stay on coercive proceedings contingent upon payment of a specific principal sum within one month and the balance in 12 equal monthly installments, with failure to compl

What did the court decide?

Coercive proceedings deferred subject to payment of ₹6 lakhs within one month and balance amount in 12 equal monthly instalments with interest and charges.

Sajitha.C.K Vs Punjab National Bank — 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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MONDAY, THE 15^TH DAY OF JANUARY 2024 / 25TH POUSHA, 1945

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WP(C) NO. 736 OF 2024

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PETITIONER:

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SAJITHA.C.K AGED 43 YEARS, W/O.GIREESH.V.K, KAIMOOLAYIL HOUSE, VALLITHALA, PADIYOOR.P.O, IRITTY TALUK , KANNUR DISTRICT, PIN – 670703.

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BY ADVS. V.T.MADHAVANUNNI V.A.SATHEESH

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RESPONDENTS:

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1 PUNJAB NATIONAL BANK IRITTY BRANCH, IRITTY.P.O, KANNUR DISTRICT, REPRESENTED BY ITS BRANCH MANAGER, PIN – 670703.

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2 AUTHORISED OFFICER PUNJAB NATIONAL BANK, CIRCLE SASTHA CENTRE, KOZHIKODE DISTRICT, PIN – 673016.

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BY ADV.SRI.SANTHEEP ANKARATH, STANDING COUNSEL

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C)No.736 of 2024

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J U D G M E N T

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Dated this the 15^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 Punjab National Bank 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 petitioner had availed an Agricultural Loan from the 1^st respondent-Bank. 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 constraints. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner.

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Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy monthly

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W.P.(C)No.736 of 2024

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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 Ext.P1 notice.

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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.

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Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner. The petitioner committed default in repaying the loan.

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The Bank repeatedly reminded the petitioner and required her to clear the dues. The petitioner deliberately omitted

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W.P.(C)No.736 of 2024

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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.P1 notice was issued in these circumstances. The petitioner

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has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

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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 outstanding 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 31.12.2023 is ₹26,11,854/-.

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

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W.P.(C)No.736 of 2024

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The specific case of the petitioner is that the petitioner

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has been making the repayment and maintaining 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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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 an amount of ₹6 lakhs within a period of one month from today.

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(ii) The petitioner shall remit the balance outstanding amount in subsequent consecutive 12 equal monthly instalments thereafter, along

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W.P.(C)No.736 of 2024

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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 with coercive proceedings against the petitioner in accordance with law. (iv) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.

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Sd/-

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N. NAGARESH JUDGE

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ams

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W.P.(C)No.736 of 2024

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APPENDIX OF WP(C) 736/2024

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PETITIONER EXHIBITS

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Exhibit P1 A TRUE COPY OF THE POSSESSION NOTICE DATED 4.9.2023 ISSUED BY THE 2ND RESPONDENT.

Sajitha.C.K v. Punjab National Bank

Case brief

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Sajitha.C.K v. Punjab National Bank

Case brief

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