Disposed

Anilkumar Ayyappan v. the Authorized Officer/Chief Manager[ Sanctions]

Kerala HC9 Jan 2024WP(C)/93/2024

Case brief

AI extract

What is this about?

Writ petition against SARFAESI recovery proceedings on a defaulted State Bank of India housing loan. The Bank agreed to grant breathing time if substantial payment was made. The court disposed of the petition directing payment of ₹1 lakh within one month and the balance overdue amount in eight equal monthly instalments with interest, failing which coercive proceedings could resume.

What did the court decide?

Petitioner directed to pay ₹1 lakh within one month and balance overdue in eight monthly instalments; coercive proceedings deferred on compliance.

Anilkumar Ayyappan Vs the Authorized Officer/Chief… — 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

TUESDAY, THE 9^TH DAY OF JANUARY 2024 / 19TH POUSHA, 1945

¶5

WP(C) NO. 93 OF 2024

¶6

PETITIONER:

¶7

ANILKUMAR AYYAPPAN AGED 38 YEARS, S/O AYYAPPAN AMBILIKARAZHMA OLAKETTIAMBALAM PO MAVELIKKARA, PIN – 690510.

¶8

BY ADV M.R.SARIN

¶9

RESPONDENT:

¶10

THE AUTHORIZED OFFICER/CHIEF MANAGER[ SANCTIONS] STATE BANK OF INDIA, RASMEC MAVELIKKARA, ALAPPUZHA DISTRICT, KERALA, PIN – 690101.

¶11

BY ADV.SRI.SANTHOSH MATHEW

¶12

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶13

W.P.(C)No.93 of 2024

¶14

:2:

¶15

J U D G M E N T

¶16

Dated this the 9^th day of January, 2024

¶17

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.

¶18

The Bank paid ₹18,37,520/- to the petitioner as Housing Loan in the year 2015. 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 financial crisis. The repayment of loan fell into arrears. It happened due to

¶19

reasons beyond the control of the petitioner.

¶20

Though the petitioner requested the Bank to permit

¶21

the petitioner to repay the overdue amounts in easy monthly instalments, the Bank authorities were not yielding. The

¶22

W.P.(C)No.93 of 2024

¶23

:3:

¶24

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 invoking Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

¶25

The petitioner states that he 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 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.

¶26

Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner.

¶27

On behalf of the respondent, it is submitted that the loan was given to the petitioner in the year 2015. The petitioner committed default in repaying the loan.

¶28

W.P.(C)No.93 of 2024

¶29

:4:

¶30

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.

¶31

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 08.01.2024 is ₹15,89,175/- and the overdue amount as on 09.01.2024 is ₹3,16,634/-.

¶32

W.P.(C)No.93 of 2024

¶33

:5:

¶34

I have heard the learned Counsel for the petitioner and Sri. Santhosh Mathew, the learned Standing Counsel representing the Bank.

¶35

The specific case of the petitioner is that the petitioner

¶36

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.

¶37

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.

¶38

The writ petition is therefore disposed of with the

¶39

following directions:

¶40

(i) The petitioner shall remit an amount of ₹1 lakh within a period of one month from

¶41

today.

¶42

W.P.(C)No.93 of 2024

¶43

:6:

¶44

(ii) The petitioner shall remit the balance overdue amount in subsequent consecutive eight equal monthly instalments thereafter, along with accruing interest and other Bank charges, if any.

¶45

(iii) If the petitioner commits default in making payments as directed above, the respondent will be at liberty to continue 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

W.P.(C)No.93 of 2024

¶51

:7: