Basheer P.P vs The Perinthalmanna Urban Co-Operative ...

Kerala High Court

Basheer P.P vs The Perinthalmanna Urban Co-Operative ... on 21 May, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
                 THE HONOURABLE MR.JUSTICE N.NAGARESH
        TUESDAY, THE 21ST DAY OF MAY 2024 / 31ST VAISAKHA, 1946
                       WP(C) NO. 18008 OF 2024
PETITIONERS:

    1       BASHEER P.P
            AGED 62 YEARS
            S/O RAYINKUFTY, RESIDING AT PALLIPARAMBAN HOUSE
            VATTALOOR P.O, MALAPPURAM DISTRICT, PIN - 676507.

    2       JUMALIA
            AGED 59 YEARS
            W/O, BASHEER, RESIDING AT PALLIPARAMBAN HOUSE V
            ATTALOOR P.O, MALAPPURAM DISTRICT, PIN - 676507.

            BY ADV N.SASIDHARAN UNNITHAN


RESPONDENTS:

    1       THE PERINTHALMANNA URBAN CO-OPERATIVE BANK LTD. NO.1758
            REP. BY THE AUTHORIZED OFFICER PERINTHALMANNA P.O,
            MALAPPURAM DISTRICT, PIN - 679322.

    2       BRANCH MANAGER
            THE PERINTHALMANNA URBAN CO-OPERATIVE BANK LTD. NO.1758
            MAKKARAPARAMBA BRANCH, MAKKARAPARAMBA P.O, MALAPPURAM
            DISTRICT, PIN - 676507.

            BY ADVS.
            JAYASREE K.P.
            JOHN JOSEPH(K/000875/2019)


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
21.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 18008 OF 2024              2


                                  JUDGMENT

Dated this the 21st day of May, 2024 The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Perinthalmanna Urban Co-operative Bank Ltd No.1758 to the petitioners, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

2. The Bank paid ₹8 lakhs to the petitioners as Mortgage Loan in the year 2019. 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 as the 1st petitioner was affected with cancer and had to undergo surgery. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioners.

3. Though the petitioners requested the Bank to permit the petitioners to repay the outstanding amounts in easy monthly installments, the Bank authorities were not yielding. WP(C) NO. 18008 OF 2024 3 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 Exts.P2 and P4 notices.

4. The petitioners state that they are still in a position to clear the outstanding 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 Bank and denied all the statements made by the petitioners. On behalf of the respondents, it is submitted that the loan was given to the petitioners in the year 2019. The petitioners committed default in repaying the loan.

6. The Bank repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioners invoking the WP(C) NO. 18008 OF 2024 4 provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Exts.P2 and P4 notices were 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 petitioners are 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 petitioners to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioners as on 21.5.2024 is ₹13,71,219/-.

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 the petitioners have been making the repayment and maintaining the loan account initially. The default in repayment of the loan occurred lately due to reasons beyond the control of the petitioners. The petitioners have provided substantial security WP(C) NO. 18008 OF 2024 5 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 outstanding amount of ₹13,71,219/- in 10 consecutive and equal monthly installments along with accruing interest and other Bank charges, if any. First of such installments shall be paid on or before 21.06.2024.

(ii) If the petitioners commit single 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 Sru WP(C) NO. 18008 OF 2024 6 APPENDIX OF WP(C) 18008/2024 PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF THE STATEMENT OF ACCOUNTS IN RESPECT OF THE ABOVE LOAN AS ON 31/1/2024 ISSUED FROM THE 2ND RESPONDENT.

Exhibit P2 TRUE COPY OF THE POSSESSION NOTICE DATED 28/12/2020 ISSUED BY THE BANK TO THE 1ST PETITIONER.

Exhibit P3 TRUE COPY OF THE ORDER DATED 6/4/2024 OF THE HONOURABLE CHIEF JUDICIAL MAGISTRATE COURT, MANJERI IN M.C. NO. 401/2024.

Exhibit P4 TRUE COPY OF THE NOTICE DATED 1/5/2024 OF THE ADVOCATE COMMISSIONER ISSUED TO THE 1ST PETITIONER.

Exhibit P5 TRUE COPY OF THE MEDICAL CERTIFICATE DATED 28/11/2023 OF THE 1ST PETITIONER ISSUED FROM THE MVR CANCER CENTRE AND RESEARCH INSTITUTE KOZHIKODE.