Kerala High Court
Annamma P.R vs Authorized Officer 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. 15070 OF 2024
PETITIONERS:
1 ANNAMMA P.R.
AGED 51 YEARS
KATTIPARAMBIL HOUSE, MUHAMMA,
THANNEERMUKKOM SOUTH ALAPPUZHA, PIN - 688525
2 VARGHESE T.T.
AGED 56 YEARS
S/O THOMAS, KATTIPARAMBIL HOUSE,
MUHAMMA, THANNEERMUKKOM SOUTH ALAPPUZHA,
PIN - 688525
BY ADV R.AZAD BABU
RESPONDENTS:
1 AUTHORIZED OFFICER
MANAPPURAM HOME FINANCE LTD.
MANAPPURAM HOUSE, VALAPAD P.O.,
THRISSUR, PIN - 680567
2 MANAPPURAM HOME FINANCE LTD
DOOR NO. 11534 C, 1ST FLOOR,
PARAYIL BUILDING, SHASTRI ROAD, KOTTAYAM
REPRESENTED BY ITS BRANCH MANAGER, PIN - 686001
BY ADV SRI.C. HARIKUMAR-R1 AND R2
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
12.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.15070 Of 2024
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JUDGMENT
Dated this the 12th day of April, 2024 The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Manappuram Home Finance Limited to the petitioners, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
2. The 2nd respondent paid ₹6,48,352/- to the petitioners as Home Loan in the year 2022. 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 financial difficulties. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioners.
WP(C) No.15070 Of 2024 3
3. Though the petitioners requested the 1st respondent to permit the petitioners to repay the overdue amounts in easy monthly installments, the respondent 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.P2 notice.
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 respondents and denied all the statements made by the petitioners. On behalf of the respondents, it is submitted that WP(C) No.15070 Of 2024 4 the loan was given to the petitioners in the year 2022. The petitioners committed default in repaying the loans.
6. The respondents repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the respondents 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 Ext.P2 notice was issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the respondents.
7. The Standing Counsel, however, submitted that if the petitioners are ready and willing to make a substantial payment soon and remit the outstanding amount immediately thereafter, a short breathing time can be granted to the petitioners to clear the dues. The Standing Counsel submitted WP(C) No.15070 Of 2024 5 that the outstanding amount due to the respondents from the petitioners as on 12.04.2024 is ₹7,87,657/-.
8. I have heard the counsel for the petitioners and the Standing Counsel representing the respondents
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 loans occurred lately due to reasons beyond the control of the petitioners. The petitioners have provided substantial security which will safeguard the interest of the respondents.
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 the
outstanding amount of ₹7,87,657/- in ten
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consecutive and equal monthly installments along with accruing interest and other administrative charges, if any. First of such installments shall be paid on or before 13.05.2024.
(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) 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.15070 Of 2024 7 APPENDIX OF WP(C) 15070/2024 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE NOTICE DATED 04- 01-2024 ISSUED TO THE PETITIONERS BY THE 1ST RESPONDENT Exhibit P2 THE TRUE COPY OF THE NOTICE DATED 02- 04-2024 ISSUED TO THE PETITIONERS BY SHRI. THOMAS P. ISSAC, ADVOCATE, ALAPPUZHA Exhibit P3 THE TRUE COPY OF THE LETTER DATED 01- 08-2022 ISSUED TO THE PETITIONERS BY THE 2ND RESPONDENT AT THE TIME OF AVAILING THE LOAN WITH DETAILS OF THE LOAN AND THE SCHEDULE OF PAYMENT