Kerala High Court
George K. M vs The Manager, Kerala State ... on 11 April, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 11TH DAY OF APRIL 2024 / 22ND CHAITHRA, 1946
WP(C) NO. 14478 OF 2024
PETITIONERS:
1 GEORGE K. M.,
AGED 65 YEARS
S/O MATHAI, KOLLAMPARAMBIL (H),
PARATHANAM P.O., KOTTAYAM, PIN - 686512
2 GIJIN GEORGE,
AGED 39 YEARS
S/O GEORGE K. M, KOLLAMPARAMBIL (H),
PARATHANAM P.O., KOTTAYAM,
PIN - 686512
BY ADVS.
AISWARYA E J VETTIKOMPIL
CHRISTINE MATHEW
ABESH ALOSIOUS
SEN C PUTHUPPARAMPIL
RESPONDENTS:
1 THE MANAGER, KERALA STATE CO.,-OPERATIVE BANK,
KOTTAYAM REGIONAL OFFICE
KERALA STATE CO-OPERATIVE BANK,
KOTTAYAM REGIONAL OFFICE,P.B. NO. 140,
CENTRAL JUNCTION, KOTTAYAM, PIN - 686001
2 MANAGER, KERALA STATE CO-OPERATIVE BANK,
MUNDAKKAYAM BRANCH,
KOTTAYAM, PIN - 686513
3 AUTHORIZED OFFICER, KERALA STATE CO-OPERATIVE BANK,
KOTTAYAM REGIONAL OFFICE, P.B. NO. 140,
CENTRAL JUNCTION, KOTTAYAM,
PIN - 686001
SRI.ATHUL SHAJI
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
11.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.14478 Of 2024
2
JUDGMENT
Dated this the 11th day of April, 2024 The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Kerala State Co-operative Bank to the petitioners, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
2. The Bank paid ₹20 lakhs to the petitioners as Ordinary Loans. The petitioners state that though the petitioners made remittances promptly during the initial repayment period of the financial advance, they could not pay the repayment installments promptly later due to Covid-19 pandemic. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioners.
WP(C) No.14478 Of 2024 3
3. Though the petitioners requested the Bank to permit the petitioners to repay the overdue amounts in easy monthly installments, the Bank authorities were not yielding. The 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 Exts.P1 to P3 notices.
4. The petitioners state that they are still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly installments. If the respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioners, they will be put to untold hardship and loss.
5. Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioners. The petitioners committed default in repaying the WP(C) No.14478 Of 2024 4 loans.
6. The Bank repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioners invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Exts.P1 to P3 notices were issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted that if the petitioners are 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 petitioners to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioners as on 08.04.2024 is ₹46,66,196/- and the WP(C) No.14478 Of 2024 5 overdue amount as on 08.04.2024 is ₹43,99,460/-.
8. I have heard the counsel for the petitioners and the Standing Counsel representing the Bank.
9. The specific case of the petitioners is that the petitioners have been making the repayment and maintaining the loan account initially. The default in repayment of the loan occurred lately due to reasons beyond the control of the petitioners. The petitioners have provided substantial security which will safeguard the interest of the Bank.
10. 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 petitioners to clear off the liability.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioners shall remit ₹10 lakhs within one month from today and the balance overdue amount in ten consecutive and equal monthly installments immediately WP(C) No.14478 Of 2024 6 thereafter along with accruing interest and other Bank charges, if any.
(ii) If the petitioners commit default in making payments as directed above, the respondents will be at liberty to continue with the coercive proceedings against the petitioners in accordance with law.
(iii) The petitioners shall also pay current EMIs along with the aforesaid payments.
(iv) If the petitioners make payments as directed above, coercive proceedings, if any, against the petitioners shall stand deferred.
Sd/-
N.NAGARESH JUDGE hmh WP(C) No.14478 Of 2024 7 APPENDIX OF WP(C) 14478/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE NOTICE DATED 24.01.2024 OF THE KERALA STATE CO-
OPERATIVE BANK, KOTTAYAM REGIONAL OFFICE Exhibit P2 A TRUE COPY OF THE NOTICE DATED 24.01.2024 OF THE KERALA STATE CO-
OPERATIVE BANK, KOTTAYAM REGIONAL OFFICE Exhibit P3 A TRUE COPY OF THE NOTICE OF ADVOCATE COMMISSIONER DATED 01-04-2024 TO FIRST PETITIONER AS PER THE ORDER OF THE HON'BLE CHIEF JUDICIAL MAGISTRATE COURT, KOTTAYAM IN MC. NO:234/2024 Exhibit P4 TRUE COPY OF DISCHARGE SHEET OF THE FIRST PETITIONER ISSUED BY MARY QUEENS MISSION HOSPITAL, KANJIRAPALLY DATED 31-01-2020 Exhibit P5 TRUE COPY OF THE OPHTHALMIC REPORT OF THE THREE YEAR OLD SON OF SECOND PETITIONER ISSUED BY LITTLE FLOWER HOSPITAL AND RESEARCH CENTRE, ANGAMALY DATED 25-03-2021