Kerala High Court
Kurian K.A vs The Special Sale Officer, Kerala State ... on 23 April, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 23RD DAY OF APRIL 2024 / 3RD VAISAKHA, 1946
WP(C) NO. 14930 OF 2024
PETITIONER:
KURIAN K.A.
AGED 73 YEARS
S/O ABRAHAM, KUDAVANAPPATTU HOUSE, KATTAPPANA. P.O.
IDUKKI DISTRICT, PIN - 685508
BY ADVS.
JOBI.A.THAMPI
GEM KORASON
SREERAM P.
SHOUKATH HUSAIN
RESPONDENTS:
1 THE SPECIAL SALE OFFICER, KERALA STATE CO-OPERATIVE
BANK
(ERSTWHILE IDUKKI DISTRICT CO-OPERATIVE BANK) OFFICE OF
THE JOINT REGISTRAR (GEN.)CO- OPERATIVE SOCIETIES CO-
OPERATIVE DEPARTMENT, IDUKKI, ION BUILDINS,
THODUPUZHA,, PIN - 685584
2 THE BRANCH MANAGER
KERALA STATE CO-OPERATIVE BANK KATTAPPANA MAIN BRANCH
(ERSTWHILE IDUKKI DISTRICT CO-OPERATIVE BANK)
KATTAPPANA MAIN BRANCH, IDUKKI DISTRICT, PIN - 685508
GP- SRI. AJITH VISWANATHAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(c)No.14930 of 2024
2
JUDGMENT
Dated this the 23rd day of April, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Kerala State Co-operative 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 ₹ 25,00,000/- to the petitioner as OL CC in the year 2014. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the repayment instalments promptly later. The repayment of loan fell into arrears later. 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 W.P.(c)No.14930 of 2024 3 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 issued by the respondent Bank.
4. The petitioner states that he 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 proceedings and auction the secured assets provided by the petitioner, he 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 2014 The petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioner and required him to clear the dues. The petitioner W.P.(c)No.14930 of 2024 4 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. P2 was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the 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 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 23.04.2024 is ₹60,96,777/-.
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 of the account occurred lately due to reasons W.P.(c)No.14930 of 2024 5 beyond the control of the petitioner. The petitioner has 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 petitioner to clear off the liability.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioner shall remit the outstanding amount of Rs.60,96,777/- in subsequent consecutive twelve equal monthly instalments along with accruing interest and other Bank charges, if any. The first instalment shall be paid on or before 23.05.2024.
(ii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioner in accordance with law.
(iii) If the petitioner pays the amount as directed W.P.(c)No.14930 of 2024 6 above, any coercive proceedings against the petitioner will stand deferred.
Sd/-
N.NAGARESH JUDGE AP W.P.(c)No.14930 of 2024 7 APPENDIX OF WP(C) 14930/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE AWARD DATED 30-12-2020 IN ARC NO. 166/2020 PASSED BY THE SPECIAL ARBITRATOR / ASSISTANT REGISTRATION, CO- OPERATIVE SOCIETIES, IDUKKI Exhibit P2 TRUE COPY OF THE NOTICE DATED 04-03-2024 DEMANDING TO PAY AN AMOUNT OF ₹ 47,94698/-, ISSUED BY THE 1ST RESPONDENT Exhibit P3 TRUE COPY OF THE REPRESENTATION DATED 05- 04-2024 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT