Allowed

Jaijith P., v. the Kerala State Co-Operative Bank Ltd.

Kerala HC7 Apr 2025WP(C)/13293/2025

Case brief

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What is this about?

The High Court of Kerala, addressing a writ petition under the SARFAESI Act regarding loan default, granted the petitioner an opportunity to repay the overdue amount in eight installments with regularization of accounts upon full payment, keeping coercive proceedings in abeyance.

What did the court decide?

Petitioner granted 08 months to repay Rs.4,22,377/- with interest/costs; first installment by 30-04-2025; loan accounts to be regularized on full payment; coercive proceedings kept in abeyance.

Jaijith P., Vs the Kerala State Co-Operative Bank Ltd. — Company and Corporate | Kerala HC (2025)

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2025:KER:30536

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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 GOPINATH P.

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MONDAY, THE 7TH DAY OF APRIL 2025 / 17TH CHAITHRA, 1947
WP(C) NO. 13293 OF 2025

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PETITIONER:

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JAIJITH P.,
AGED 37 YEARS, S/O. GOPINATHAN,
‘SIVAM HOUSE’, KATTILPARAMBU, FLORICAN ROAD,
MALAPARAMBU P.O., KOZHIKODE DISTRICT,
PIN – 673 009.

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BY ADVS.

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P.SAMSUDIN
JASNEED JAMAL
LIRA A.B.
DEVIKA E.D.
ABIN RASHID

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RESPONDENTS:

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1THE KERALA STATE CO-OPERATIVE BANK LTD.,
(KERALA BANK) REPRESENTED BY ITS AUTHORIZED
OFFICER, NADAKAVU BRANCH, KALLAI ROAD CALICUT,
KOZHIKODE DISTRICT, PIN – 673 002.

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2THE AUTHORISED OFFICER,
THE KERALA STATE CO-OPERATIVE BANK LTD.,
(KERALA BANK), NADAKAVU BRANCH,
KALLAI ROAD CALICUT, KOZHIKODE DISTRICT,
PIN – 673 002.

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BY ADV. P.C.SASIDHARAN, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 07.04.2025, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:

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WP(C) 13293/2025

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2025:KER:30536

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JUDGMENT

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Petitioner availed two loans from the

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1^st respondent bank. On default being committed proceedings have been initiated against the petitioner under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), prompting the petitioner to approach this Court by filing the above writ petition.

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During the course of hearing, petitioner has confined the relief to an opportunity for repaying the overdue amount in installments and to obtain regularization of the loan accounts.

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It is submitted on behalf of the respondent bank that the petitioner committed default in repayment and the total overdue amount in respect of both the loans put together is Rs.4,22,377/-, as on 07-04-2025. It is further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is

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2025:KER:30536

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WP(C) 13293/2025

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willing to accept repayment of the overdue amount in limited installments and regularize the loan accounts.

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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 in eight (08) installments and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan accounts regularized.

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Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.4,22,377/- along any with accrued interest, costs and charges from the petitioner and regularize the loan accounts of the petitioner in the following manner:

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(i) The petitioner shall pay the overdue amount of Rs.4,22,377/- in eight (08) equated monthly installments along with any accrued interest, costs and charges;

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WP(C) 13293/20254

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2025:KER:30536

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(ii) The first installment shall be paid on or before 30-04-2025. The subsequent installments shall be paid on or before the last working day of the succeeding months;

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(iii) Petitioner shall continue to pay the regular EMI’s/installments along with the installments as directed above;

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(iv) In the event of default of any one installment, the respondent bank shall be entitled to proceed in accordance with the law;

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

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The writ petition is disposed of as above.

Sd/GOPINATH P.

JUDGE

ats

WP(C) 13293/2025

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2025:KER:30536

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APPENDIX OF WP(C) 13293/2025

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PETITIONER’S EXHIBITS

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Exhibit P1TRUE COPY OF THE NOTICE DATED
09-01-2025 ISSUED TO THE PETITIONER.

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Exhibit P2

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TRUE COPY OF THE NOTICE DATED
05-02-2025 ISSUED BY THE MANAGER OF THE
1ST RESPONDENT BANK TO THE PETITIONER.

Jaijith P., v. the Kerala State Co-Operative Bank Ltd.

Case brief

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Jaijith P., v. the Kerala State Co-Operative Bank Ltd.

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