Reji.P.Ravi vs Mahindra Rural Housing Finance

Kerala High Court

Reji.P.Ravi vs Mahindra Rural Housing Finance on 20 May, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

        IN THE HIGH COURT OF KERALA AT ERNAKULAM
                           PRESENT
          THE HONOURABLE MR.JUSTICE N.NAGARESH
 MONDAY, THE 20TH DAY OF MAY 2024 / 30TH VAISAKHA, 1946
                WP(C) NO. 10874 OF 2024
PETITIONER:

         REJI.P.RAVI
         AGED 43 YEARS
         W/O SAJU.B, RESIDING AT PERAYATHUKONAM,
         VADAKKINKARA VEEDU, MEKKOLLA,
         DHANUVACHAPURAM P.O, KOLLAYIL, MANCHAVILAKOM,
         THIRUVANANTHAPURAM DISTRICT, PIN - 695503

         BY ADVS.
         J.R.PREM NAVAZ
         SUMEEN S.
         MUHAMMED SWADIQ


RESPONDENTS:

    1    MAHINDRA RURAL HOUSING FINANCE
         LTD 3RD FLOOR, AMBADY TOWERS, POOKKATTUPADY
         ROAD, EDAPPALLY TOLL, ERNAKULAM,
         REPRESENTED BY ITS AUTHORIZED OFFICER.
         PIN - 682024
    2    THE AUTHORIZED OFFICER
         MAHINDRA RURAL HOUSING FINANCE LIMITED MAHINDRA
         RURAL HOUSING FINANCE LTD 3RD FLOOR,
         AMBADY TOWERS, POOKKATTUPADY ROAD,
         EDAPPALLY TOLL, ERNAKULAM,
         PIN - 682024

         SRI.M.A.JOSEPH MANAVALAN FOR R1 & R2


     THIS WRIT PETITION (CIVIL) HAVING COME UP       FOR
ADMISSION ON 20.05.2024, THE COURT ON THE SAME       DAY
DELIVERED THE FOLLOWING:
 W.P.(C) No.10874/2024
                                       :2:




                            N. NAGARESH, J.

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                      W.P.(C) No.10874 of 2024

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                 Dated this the 20th day of May, 2024


                             JUDGMENT

~~~~~~~~~ The petitioner as co-borrower obtained a housing loan of ₹1,80,000/- from the 1 st respondent-finance company. On the failure of the borrowers to make repayments promptly, the respondents initiated proceedings under the SARFAESI Act. Section 14 notice was issued on the petitioner.

2. The petitioner thereupon filed the writ petition seeking the following reliefs:-

(i) To issue a writ of certiorari or any other appropriate writ, order calling for the records leading to Exts.P2 and P3 and quash the same holding that the very declaration of the petitioner's loan accounts as NPA is without following the procedures prescribed and hence illegal and unauthorised.

(ii) To issue a writ of mandamus directing respondents 1 and 2 to permit the petitioner to discharge the outstanding overdue loan liability in 24 monthly instalments as fixed by this Hon'ble Court and to regularise the loan.

(iii) Such other reliefs that may be deemed fit and proper by the Hon'ble Court in the circumstances of this case.

3. This Court passed an interim order on 18.03.2024 staying further proceedings pursuant to Ext.P3 for a period of one month on condition that the petitioner remits an amount of ₹20,000/- on or before 27.03.2024. In RP No.400/2024, the counsel for the writ petitioner undertook to pay an additional amount of ₹20,000/- on or before 27.03.2024.

4. The Standing Counsel representing the respondents opposed the writ petition and submitted that the total amount outstanding was ₹2,20,529/- and the overdue amount payable was ₹82,524/-, when the writ petition was filed. As on 27.03.2024, the total outstanding balance was ₹1,82,004/-. The Standing Counsel urged that a writ petition is not maintainable against the proceeding initiated by the respondents under the SARFAESI Act. W.P.(C) No.10874/2024 :4:

5. I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the respondents.

6. The loan involved in the writ petition is a housing loan. The Standing Counsel representing the financial institution would submit that the loan account cannot be regularised paying the overdue amount. The counsel for the petitioner submits that the petitioner is ready to pay the total outstanding amount, if a breathing time is granted.

7. Pursuant to the interim order of this Court, the petitioner has paid ₹20,000/- and had undertaken to pay a further amount of ₹20,000/- on or before 27.03.2024. In the circumstances of the case, I am of the view that the writ petition can be disposed of granting a short time to the petitioner to clear the loan account.

8. The writ petition is therefore disposed of with the following directions:-

(i) The petitioner shall pay the total outstanding amount of ₹1,82,004/- as on W.P.(C) No.10874/2024 :5: 27.03.2024 in 12 equal and consecutive monthly instalments along with accruing interest and other administrative charges, if any. The first of such instalments shall be paid within a period of one month from today.

                (ii)    If        the   petitioner    makes     the

         payments            as     directed   above,     coercive

proceedings pursuant to Exts.P2 and P3 shall stand deferred.

(iii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to proceed against the petitioner in accordance with law.

Sd/-

N. NAGARESH, JUDGE aks/15.05.2024 W.P.(C) No.10874/2024 :6: APPENDIX OF WP(C) 10874/2024 PETITIONER'S EXHIBITS Exhibit P1 THE TRUE COPY OF THE DEMAND NOTICE ISSUED TO THE PETITIONER DATED 25.07.2023 Exhibit P2 THE TRUE COPY OF THE ORDER DATED 17.02.2024 IN M.C. NO: 123 OF 2024 PASSED BY THE CHIEF JUDICIAL MAGISTRATE, THIRUVANANTHAPURAM Exhibit P3 THE TRUE COPY OF THE NOTICE DATED 1.03.2024 ISSUED TO THE PETITIONER BY THE ADVOCATE COMMISSIONER APPOINTED PURSUANT TO EXT-P2 ORDER