Take notes as you read a judgment using our Virtual Legal Assistant and get email alerts whenever a new judgment matches your query (Query Alert Service). Try out our Premium Member Services -- Sign up today and get free trial for one month.
Kerala High Court
Saleem vs Kerala State Co-Operative Bank Ltd 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. 16203 OF 2024
PETITIONERS:
1 SALEEM
AGED 45 YEARS, S/O SAIDUTTY HAJI,
KURUKURUKAM POYIL HOUSE, ELETTIL,
KIZHAKKOTH VILLAGE, THAMARASSERY TALUK,
KOZHIODE DISTRICT, PIN - 673572.
2 IMBICHAYISHA UMMA
AGED 64 YEARS, W/O. SAIDUTTY HAJI,
KURUKURUKAM POYIL HOUSE, ELETTIL,
KIZHAKKOTH VILLAGE, THAMARASSERY TALUK,
KOZHIODE DISTRICT, PIN - 673572.
BY ADVS.
RAFEEK. V.K.
VICTOR ANTONY NOONE
U.M.HASSAN
SALMAN FARIS
RESPONDENTS:
1 KERALA STATE CO-OPERATIVE BANK LTD
REPRESENTED BY ITS MANAGER (KERALA BANK),
KALLAI BRANCH, KALLAI ROAD, P.O
CHALAPPURAM,KOZHIKODE, PIN - 673002.
2 THE AUTHORISED OFFICER
KERALA STATE CO-OPERATIVE BANK LTD,
KERALA BANK, KALLAI BRANCH,
KALLAI ROAD, P.O CHALAPPURAM,
KOZHIKODE, PIN - 673002.
W.P.(C)No.16203 of 2024
:2:
3 MUHAMMED ABDUL AZEEZ
AGED 47 YEARS, S/O ABDUL RAHMAN,
OZHALAKKUNNUMMAL HOUSE, PUTHEN PEEDIKA,
ELETTIL P.O, KIZHAKKOTH VILLAGE,
THAMARASSERY TALUK,
KOZHIKODE DISTRICT, PIN - 673572.
4 UMAIBA
W/O. MUHAMMED ABDUL AZEES,
POWER OF ATTORNEY HOLDER OF MUHAMMED ABDUL
AZEES, PUTHAN PEEDIKA HOUSE, ELETTIL P.O.
KIZHAKKOTH VILLAGE, THAMARASSERY TALUK,
KOZHIKODE DISTRICT, PIN - 673572.
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.16203 of 2024
:3:
JUDGMENT
Dated this the 20th day of May, 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 respondents 3 and 4, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
2. The Bank paid ₹21,50,000/- to respondents 3 and 4 as Ordinary Loan in the year 2017 by mortgaging the property of the petitioners. The petitioners state that though respondents 3 and 4 made remittances promptly during the W.P.(C)No.16203 of 2024 :4: initial repayment period of the financial advance, they could not pay the repayment instalments promptly later due to financial constraints. The repayment of loan fell into arrears. It happened due to reasons beyond the control of respondents 3 and 4.
3. Though the borrowers requested the Bank to permit them 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.P3 notice.
4. The petitioners state that they are 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 W.P.(C)No.16203 of 2024 :5: respondents 1 and 2 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. On behalf of respondents 1 and 2, it is submitted that the loan was given to respondents 3 and 4 in the year 2017. Respondents 3 and 4 committed default in repaying the loan.
6. The Bank repeatedly reminded respondents 3 and 4 and required them to clear the dues. Respondents 3 and 4 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 W.P.(C)No.16203 of 2024 :6: Security Interest Act, 2002. The impugned Ext.P3 notice was 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 petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from respondents 3 and 4 is ₹23,54,154/- and the overdue amount as on 20.05.2024 is ₹11,08,744/-.
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 respondents 3 and 4 have been making the repayment and W.P.(C)No.16203 of 2024 :7: maintaining the loan account initially. The default in repayment 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 the overdue amount of ₹11,08,744/- in 12 equal and consecutive monthly instalments along with accruing interest and other Bank charges, if any. The first instalment shall be paid on or before 20.06.2024.
W.P.(C)No.16203 of 2024 :8: (ii) If the petitioners commit default in making payments as directed above,
respondents 1 and 2 will be at liberty to continue with 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 ams W.P.(C)No.16203 of 2024 :9: APPENDIX OF WP(C) 16203/2024 PETITIONERS' EXHIBITS Exhibit P1 TRUE COPY OF THE JUDGMENT IN WPC 851/2022 DATED 29.11.2022 Exhibit P2 TRUE COPY PAYMENT RECEIPTS DATED FROM 30.12.2022 TO 05.12.2023 Exhibit P3 TRUE COPY OF THE NOTICE DATED 03.04.2024 ISSUED BY THE ADVOCATE COMMISSIONER IN M.C. NO.378/2022, FILED BY THE RESPONDENT BEFORE THE HON'BLE CHIEF JUDICIAL MAGISTRASTE COURT, KOZHIKODE