Devaki, Vs the Authorized Officer — Banking and Recovery | Kerala HC (2025)

Devaki, Vs the Authorized Officer — Banking and Recovery | Kerala HC (2025)

What the court decided

AI extract

Outcome

Direction to the respondent bank to accept repayment of the entire overdue amount of Rs.3,34,835/- with accrued interest, cost and bank charges and regularise the loan account: Rs.1,00,000/- on or before 21.04.2025; balance of Rs.2,34,835/- in ten equated monthly instalments, the first on or before 21.05.2025 and subsequent instalments on or before the 21st of each succeeding month, alongside regular EMIs; sale of property scheduled for 22.04.2025 not to be confirmed if Rs.1 lakh is remitted by 21.04.2025; sale proceedings to be cancelled on full compliance; coercive proceedings kept in abeyance.

Issue for consideration

Whether the petitioner, facing recovery proceedings by the respondent bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and a scheduled sale of her property, can be granted an opportunity to repay the overdue amount in instalments and obtain regularisation of the loan account.

Court's answer

The petitioner is granted an opportunity to repay the overdue amount of Rs.3,34,835/- on condition that she pays Rs.1,00,000/- on or before 21.04.2025 and the balance amount along with accrued interest, cost and charges in ten instalments, failing which regularisation follows upon repayment within the time directed.

Ratio / Principle

There is a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.3,34,835/- along with accrued interest, cost and bank charges and to regularise the loan account of the petitioner in the manner set out in the judgment.

Key takeaways

If the petitioner remits Rs.1 lakh by 21.04.2025, the sale of her property scheduled for 22.04.2025 shall not be confirmed (the bank may adjourn the sale); if she fails to remit, the bank may continue with the sale proceedings initiated against her.ratio¶32
On compliance with all conditions imposed in the judgment, the sale proceedings shall be cancelled; on failure to comply with any condition, the bank may proceed in accordance with law by confirming the sale (if held on 22.04.2025) or bringing the property to sale again.ratio¶36

Detailed headnote1 paragraphs

SARFAESI recovery proceedings — instalment-based regularisation granted. Devaki, aged 70, who faced recovery proceedings initiated by the Kottakkal Urban Co-operative Bank Ltd. No.1378 under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, confined her relief before the High Court of Kerala to an opportunity to repay the overdue amount in instalments and obtain regularisation of the loan account. The overdue amount as on 01.04.2025 was Rs.3,34,835/-, and sale of her property was scheduled for 22.04.2025. Gopinath P., J., directed the bank to accept the overdue amount with accrued interest, cost and bank charges and regularise the account upon payment of Rs.1,00,000/- on or before 21.04.2025 and the balance of Rs.2,34,835/- in ten equated monthly instalments commencing 21.05.2025, together with regular EMIs. If Rs.1 lakh was remitted by 21.04.2025, the sale fixed for 22.04.2025 would not be confirmed; on full compliance the sale proceedings would stand cancelled, while failure would permit the bank to proceed with confirmation of sale or a fresh sale in accordance with law. All coercive proceedings were kept in abeyance. The writ petition was disposed of accordingly.

2025:KER:27591

WP(C) NO. 10248 OF 2025 1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT

THE HONOURABLE MR. JUSTICE GOPINATH P.

TUESDAY, THE 1^ST DAY OF APRIL 2025 / 11TH CHAITHRA, 1947

WP(C) NO. 10248 OF 2025

PETITIONER/S:

DEVAKI, AGED 70 YEARS
W/O. BALAN, KALARICKAL HOUSE, KATTAMKUNNU,
KURUMBATHUR P.O., TIRUR, MALAPPURAM, PIN - 676301

BY ADV M.R.SASITH

RESPONDENT/S:

1 THE AUTHORIZED OFFICER,THE KOTTAKKAL URBAN CO-OPERATIVE BANK LTD. NO.1378, HEAD OFFICE, KOTTAPPADY, KOTTAKKAL, MALAPPURAM, PIN - 676503

2 THE KOTTAKKAL URBAN CO-OPERATIVE BANK LTD. NO.1378, PUTHANANGADI BRANCH, REPRESENTED BY ITS BRANCH MANAGER, MALAPPURAM, PIN - 679321

3 THE BRANCH MANAGER, THE KOTTAKKAL URBAN CO-OPERATIVE BANK LTD. NO.1378, PUTHANANGADI BRANCH, MALAPPURAM, PIN - 679321

BY ADVS.
Devaprasanth P.J
SMINI JOSE(K/262/2015)

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
01.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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JUDGMENT

Petitioner has approached this Court, challenging proceedings initiated by the respondent Bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 for recovery of the amounts due from the petitioner.

During the course of hearing, petitioner has confined the relief to an opportunity for repaying the overdue amount in instalments and to obtain regularisation of the loan account.

It is submitted on behalf of the respondent bank that the petitioner availed a term loan from the respondent bank and committed default in repayment and the overdue amount, as on 01.04.2025, would come to Rs.3,34,835/(Rupees Three lakh thirty four thousand eight hundred and thirty five only). It is submitted that, the sale of the property of the petitioner is scheduled to be held on 22.04.2025. It is submitted that, while the bank has no objection in granting some limited instalments to the petitioner to clear the overdue amount, the petitioner may be required to pay some substantial amount before the date of sale to prove bona

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fides.

Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the overdue amount of Rs.3,34,835/- (Rupees Three lakh thirty four thousand eight hundred and thirty five only) on a condition that the petitioner shall pay an amount of Rs.1,00,000/- on or before 21.04.2025 and the balance amount along with any accrued interest, cost and charges in ten instalments and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.

Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.3,34,835/- (Rupees Three lakh thirty four thousand eight hundred and thirty five only) along with accrued interest, cost and bank charges from the petitioner and regularise the loan account of the petitioner in the following manner:-

(i) The petitioner shall pay an amount of Rs.1,00,000/- on or before 21.04.2025 ;

(ii) If the petitioner remits the amount of Rs.1 lakh by

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21.04.2025 as directed above, any sale of the property of the petitioner (to be held on 22.04.2025) shall not be confirmed. It will also be open to the respondent bank to adjourn the sale, if it wishes to do so, on remittance of the above amount of Rs.1 lakh. If the petitioner fails to remit the amount of Rs.1 lakh by 21.04.2025, it will be open to the respondent bank to continue with the sale proceedings initiated against the petitioner.

(iii) The balance overdue amount of Rs.2,34,835/- (Rupees Two lakh thirty four thousand eight hundred and thirty five only) along with any accrued interest, cost and charges shall be paid in ten equated monthly instalments;

(iv)The first instalment shall be paid on or before 21.05.2025 and the subsequent instalments shall be paid on or before the 21^st day of each succeeding months;

(v)Petitioner shall continue to pay the regular EMI’s/instalments along with the instalments directed above;

(vi) If the petitioner complies with all the conditions imposed in this judgment, the sale proceedings shall be cancelled. However, if the petitioner fails to comply with any condition imposed in this judgment, it will also be open to the respondent bank to proceed in accordance with the law by confirming the sale ( if any held on 22.04.2025) or to bring the property of the petitioner to sale again, in accordance with the law.

(vii) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.

Sd/-

GOPINATH P.

JUDGE

ajt

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APPENDIX OF WP(C) 10248/2025

PETITIONER EXHIBITS

Exhibit-P1

THE TRUE COPY OF THE POSSESSION NOTICE ,ALONG
WITH THE TYPED COPY, DATED 10.02.2025 ISSUED
BY THE 1ST RESPONDENT.