Disposed

Ramachandran, v. State Bank of India

Kerala HC12 Jun 2024WP(C)/8459/2024

Case brief

AI extract

What is this about?

Housing loan default led the Bank to initiate SARFAESI coercive recovery. The petitioner sought time to repay arrears in installments. The Court directed payment of the overdue amount in 12 equal monthly installments with interest and current EMIs, deferring coercive proceedings if payments are made.

What did the court decide?

Payment of overdue ₹2,45,686/- in 12 equal monthly installments with interest and current EMIs; coercive proceedings deferred if paid as directed.

Ramachandran, Vs State Bank of India — 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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WEDNESDAY, THE 12TH DAY OF JUNE 2024 / 22ND JYAISHTA, 1946

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WP(C) NO. 8459 OF 2024

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PETITIONER:

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RAMACHANDRAN,
AGED 40 YEARS
S/O NARAYANAN NAIR ,ERATH PANEKKAD HOUSE
MUDUR ,VETTAMKULAM P.O,
EDAPPAL , MALAPPURAM DT, PIN – 679578

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BY ADVS.
M.R.REENA
P.S.SUJETH

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RESPONDENT:

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STATE BANK OF INDIA,
EDAPPAL BR. MALAPPURAM DT.,
REP BY ITS AUTHORISED OFFICER, RETAIL ASSETS ,
SMALL & MEDIUM ENTERPRISES CENTRE MALAPPURAM,
ELIKKOTTIL ARCADE , VARANGODE DOWN HILL P.O.,
MALAPPURAM, PIN – 676519

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BY ADVS.
S.AMBILY
RUPA R. NAIR
RUBAN JOE TONIYO
MATHEW JOSEPH BALUMMEL
K.K.CHANDRAN PILLAI (SR.)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
12.06.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) No.8459 Of 2024

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JUDGMENT

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Dated this the 12^th day of June, 2024

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The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the State Bank of India 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 Bank paid ₹8,28,215/- to the petitioner as

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Housing Loan in the year 2016. 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 installments promptly later due to Covid-19 pandemic. 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

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the petitioner to repay the overdue amounts in easy monthly

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WP(C) No.8459 Of 2024

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installments, 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 he is still in a position to clear the overdue amounts towards the loan, if sufficient time

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is given to clear the dues in easy monthly installments. 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 and loss.

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Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner. On behalf of the respondent, it is submitted that the

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loan was given to the petitioner in the year 2016. The petitioner committed default in repaying the loan.

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WP(C) No.8459 Of 2024

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The Bank repeatedly reminded the petitioner and 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.P1 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 Standing Counsel, however, submitted that if

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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 12.06.2024 is ₹9,95,079/- and the overdue amount as on 12.06.2024 is ₹2,45,686/-.

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WP(C) No.8459 Of 2024

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I have heard the counsel for the petitioner and the

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Standing Counsel representing the Bank.

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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 loan 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 the overdue amount of 2,45,686/- in 12 consecutive and₹

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equal monthly installments along with accruing interest and other Bank charges, if any. First of such installments shall be paid

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WP(C) No.8459 Of 2024

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on or before 12.07.2024.

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(ii) If the petitioner commits default 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

hmh

WP(C) No.8459 Of 2024

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APPENDIX OF WP(C) 8459/2024

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PETITIONER EXHIBITS

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Exhibit P1A TRUE COPY OF THE DEMAND NOTICE DATED
19-10--2023 ISSUED BY THE RESPONDENT
Exhibit P2A TRUE COPY OF THE REPRESENTATION
DATED15-10-2023SENTBYTHE
PETITIONER

Ramachandran, v. State Bank of India

Case brief

What is this about?

What did the court decide?

Ramachandran, v. State Bank of India

Case brief

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