IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
FRIDAY, THE 26TH DAY OF AUGUST 2022 / 4TH BHADRA, 1944
WP(C) NO. 27650 OF 2022
PETITIONER:
NAZIMUDEEN A
AGED 52 YEARS, S/O. ABDUL JALEEL,
RESIDING AT JABBAR BUILDING, CONTONMENT SOURTH,
KOLLAM, PIN - 691 001.
BY ADVS.
S.SREEKUMAR (KOLLAM)
K.VIJAYAN
NAMITHA RAJESH
RESPONDENTS:
1 THE MANAGER
THE QUILON CO-OPERATIVE URBAN BANK LTD. NO. 960,
MAIN BRANCH, YMCA ROAD, CHINNAKADA,
KOLLAM, PIN - 691 001.
2 THE AUTHORIZED OFFICER
THE QUILON CO-OPERATIVE URBAN BANK LTD. NO. 960,
HEAD OFFICE, CHINNAKKAD, YMCA ROAD,
KOLLAM, PIN - 691 001.
BY ADV SMT.RENU.D.P., SC, QUILON CO.OP. URBAN BANK
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
26.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 27650 OF 2022 2
JUDGMENT
Petitioner is a guarantor in respect of a loan availed by his wife. He has approached this Court being aggrieved by the proceedings for recovery of amounts due under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act).
3. It was submitted on behalf of the respondent bank that the petitioner committed default in repayment and the overdue amount is Rs.6,91,871/- (Rupees Six Lakhs Ninety One Thousand Eight Hundred and Seventy One only). It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the overdue amount in limited installments and regularize the loan account.
2. The learned counsel for the petitioner states that due to certain work executed by the Kerala Water Authority in front of the shop of the petitioner there has been practically no business for the petitioner over the past three years. It is submitted that the default was committed only on account of the above fact WP(C) NO. 27650 OF 2022 3
4. I have heard Adv.S.Sreekumar, learned counsel for the petitioner as well as Adv.Renu D.P., the learned counsel for the respondents.
5. Having regard to the circumstances of the case and the situation now prevailing, apart from 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 12 installments and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularized.
6. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.6,91,871/- (Rupees Six Lakhs Ninety One Thousand Eight Hundred and Seventy One only) along with bank charges from the petitioner and regularize the loan account of the petitioner on the following conditions:
(i) The overdue amount of Rs.6,91,871/- (Rupees Six Lakhs Ninety One Thousand Eight Hundred and Seventy One only) shall be repaid in 15 equated monthly installments along with any accrued interest and costs; WP(C) NO. 27650 OF 2022 4
(ii) The first installment shall be paid on or before 16-09-2022. The subsequent installments shall be paid on or before the last working day of the succeeding months;
(iii) Petitioner shall continue to pay the regular EMI's along with the installments directed above;
(iv) In the event of default of any one installment, the respondent bank shall be entitled to proceed in accordance with law.
(v) 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 ats WP(C) NO. 27650 OF 2022 5 APPENDIX OF WP(C) 27650/2022 PETITIONER EXHIBITS Exhibit- P1 THE TRUE PHOTOGRAPHS OF THE SHOWING THE PRESENT CONDITION OF THE ROAD Exhibit- P2 TRUE COPY OF THE NOTICE DATED 30.09.2020 UNDER SECTION 13(2) OF THE SARFAESI ACT Exhibit- P3 THE TRUE COPY OF THE REPRESENTATION DATED 07.03.2022 GIVEN TO THE 1ST RESPONDENT