IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
THURSDAY, THE 07TH DAY OF JANUARY 2021 / 17TH POUSHA, 1942
WP(C).No.20392 OF 2020(Y)
PETITIONER:
SREEKUMAR.V.
AGED 58 YEARS
S/O.VELAPPAN CHETTIYAR, RAKKONATHU PUTHEN VEEDU,
PEYAD P.O., THIRUVANANTHAPURAM.
BY ADV. SRI.SABU S.KALLARAMOOLA
RESPONDENT:
REPCO BANK LTD.
U.K.EDIFICE COMPLEX, GROUND FLOOR, CHENTHITTA, CHALAI
P.O., THIRUVANANTHAPURAM-695 001, REPRESENTED BY ITS
AUTHORISED OFFICER.
R1 BY ADV. SRI.V.KRISHNA MENON
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
07.01.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.20392 OF 2020 2
JUDGMENT
Even though the petitioner has made various averments and allegations in this writ petition, when this matter was called today, Shri.Sabu S.Kallaramoola, his learned counsel, requested that this Court grant him two months time to pay off the entire loan liability.
2. The learned counsel submitted that the petitioner is now arranging to pay off the entire outstanding in the loan account and therefore, that if the afore time is granted, he will be in a position to close the loan account and settle the liability fully.
3. In response, Shri.V.Krishna Menon, learned Standing Counsel appearing for the respondent - Bank, submitted that the total outstanding in the loan account of the petitioner is Rs.25,78,977/-, as on 31/10/2020; and that at the best,the Bank can WP(C).No.20392 OF 2020 3 allow him to pay off the same in not more than 8 equal monthly instalments. He, however, submitted that no moratorium of two months as prayed for by him be granted, since this will only have the effect of delaying the proceedings further.
4. When I consider the afore submissions, it is without doubt that the jurisdiction of this Court in dealing with matters relating to the steps taken by the Banks and Financial Institutions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act ('the SARFAESI Act' for brevity) is extremely restricted on account of the judgments of the Hon'ble Supreme Court in Union Bank of India v. Satyawati Tondon [2010 (8) SCC 110] and in Authorised Officer, State Bank of Travancore and Another v. Mathew K.C. [2018 (1) KLT 784].
5. However, since the Bank now agrees that the outstanding in the loan account can be paid off by the petitioner in 8 equal monthly WP(C).No.20392 OF 2020 4 instalments, I am of the view that he can be given the said latitude, so that he can either pay the same in such manner or close the account in two months, as he may desire.
In the afore circumstances, I order this writ petition and direct the petitioner to pay an amount of Rs.25,78,977/-, which is stated to be the outstanding in the loan account as on 31/10/2020, along with all applicable charges and interest, in 8 equal monthly instalments commencing from 05/02/2021.
It is needless to say that if the petitioner pays off the amounts as ordered above or settles the liability earlier, the Bank will close the loan account and return the title documents of the secured assets to the petitioner/mortgagor, as the case may be, without any avoidable delay thereafter.
It also goes without saying that if the petitioner commits any default of the afore directions, the Bank will be at liberty to WP(C).No.20392 OF 2020 5 continue with the proceedings under the SARFAESI Act from the stage at which it is available today, without having to secure any further orders from this Court.
Sd/-
DEVAN RAMACHANDRAN JUDGE MC/7.1.2021 WP(C).No.20392 OF 2020 6 APPENDIX PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF REQUEST DATED 20.04.2020 SUBMITTED BEFORE THE RESPONDENT SEEKING MORATARIUM BENEFIT.
EXHIBIT P2 TRUE COPY OF NOTICE DATED 05.09.2020 ISSUED BY THE RESPONDENT BANK.
MC
(TRUE COPY) PA TO JUDGE