Kerala High Court
Jesna Binu vs Authorized Officer, Federal Bank Ltd on 12 April, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 12TH DAY OF APRIL 2024 / 23RD CHAITHRA, 1946
WP(C) NO. 15385 OF 2024
PETITIONER:
JESNA BINU
AGED 35 YEARS, W/O BINU SREEDHAR,
PALAKUNNEL HOUSE, MULAPPURAM,
VTC: KARIMANNOOR, MULAPPURAM P.O,
IDUKKI DISTRICT,, PIN - 685581.
BY ADVS.
T.P.PRADEEP
P.K.SATHEES KUMAR
MINIKUMARY M.V.
R.K.PRASANTH
JIJO JOSEPH
RESPONDENTS:
1 AUTHORIZED OFFICER,
FEDERAL BANK LTD
LCRD THODUPUZHA DIVISION,
KP VARKEY'S MALL, ROTTARY JUNCTION,
AMBALAM BYPASS ROAD, THODUPUZHA,
IDUKKI ,, PIN - 685584.
2 THE MANAGER
THE FEDERAL BANK LTD.
VANNAPPURAM BRANCH, RESHMI ARCADE,
VANNAPPURAM, IDUKKI - 685607.
BY ADV.SRI.PAULOCHAN ANTONY
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 12.04.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C)No.15385 of 2024
:2:
JUDGMENT
Dated this the 12th day of April, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Federal Bank to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
2. The Bank paid ₹5 lakhs to the petitioner as Prathyasha Loan in the year 2020. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, she could W.P.(C)No.15385 of 2024 :3: not pay the repayment instalments promptly later due to Covid-19 pandemic. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner.
3. Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy monthly instalments, 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 Ext.P1 notice.
4. The petitioner states that she is still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondents are permitted to continue with the coercive W.P.(C)No.15385 of 2024 :4: proceedings and auction the secured assets provided by the petitioner, she 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 petitioner. On behalf of the respondents, it is submitted that the loan was given to the petitioner in the year 2020. The petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioner and required her to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioner invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Ext.P1 notice was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the W.P.(C)No.15385 of 2024 :5: Bank.
7. The Standing Counsel, however, submitted that if the petitioner is ready and willing to make a substantial payment soon and remit the balance outstanding amount immediately thereafter, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioner as on 12.04.2024 is ₹5,63,961/-.
8. I have heard the counsel for the petitioner and the Standing Counsel representing the Bank.
9. The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan account initially. The default in repayment occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.
W.P.(C)No.15385 of 2024:6:
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 petitioner to clear off the liability.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioner shall remit an amount of ₹1 lakh on or before 15.05.2024.
(ii) The petitioner shall remit the balance
outstanding amount in subsequent
consecutive 10 equal monthly instalments thereafter, along with accruing interest and other Bank charges, if any.
(iii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the W.P.(C)No.15385 of 2024 :7: petitioner in accordance with law.
(iv) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.
Sd/-
N. NAGARESH JUDGE ams W.P.(C)No.15385 of 2024 :8: APPENDIX OF WP(C) 15385/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE POSSESSION NOTICE ISSUED UNDER SECTION 13(4) OF SARFAESI ACT DATED 25/04/2023 Exhibit P2 A TRUE COPY OF THE BANK PASSBOOK BEARING ACCOUNT NO. 18356600000281 ISSUED BY THE FEDERAL BANK LTD., VANNAPPURAM BRANCH