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Kerala High Court
Sindhu S vs The Kerala State Co-Operative Bank 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. 18042 OF 2024
PETITIONER:
SINDHU S
AGED 51 YEARS
W/O RAMESH,RODUVILA PUTHEN VEEDU,
KULARTHOORKONAM, CHIRAKKARA P.O,
KOLLAM., PIN - 691578
BY ADVS.
N.RENJU
C.C.ANOOP
RESPONDENTS:
1 THE KERALA STATE CO-OPERATIVE BANK
PARIPALLY BRANCH,
PARIPALLY NILAMEL ROAD,
PARIPALLY, KOLLAM,
REP BY ITS SECRETARY,
PIN - 691573
2 AUTHORISED OFFICER
KERALA STATE CO-OPERATIVE BANK,
PARIPALLY BRANCH,
PARIPALLY NILAMEL ROAD, PARIPALLY,
KOLLAM., PIN - 691573
BY SRI. P.C. SASIDHARAN, STANDING COUNSEL
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.18042 OF 2024
2
JUDGMENT
Dated this the 21st day of May, 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 Limited 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 ₹1,60,000/- to the petitioner as Ordinary Loan in the year 2017. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, she could not pay the repayment installments promptly later due to various unforeseen circumstances happened one after other including domonetisation, floods and lock down due to Covid-
19. The repayment of loan fell into arrears. It happened due WP(C) NO.18042 OF 2024 3 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 installments, 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 Exts.P3 and P4 notices.
4. The petitioner states that she is 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 petitioner, she 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 WP(C) NO.18042 OF 2024 4 the loan was given to the petitioner in the year 2017. The petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioner and required her to clear the dues. The petitioner 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 Exts. P3 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 petitioner is 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 petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from WP(C) NO.18042 OF 2024 5 the petitioner as on 21.05.2024 is ₹3,71,832/- .
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 loan occurred lately due to reasons 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 an amount of ₹ 75,000/- within a period of one month from today and the balance outstanding amount in subsequent consecutive eight equal monthly WP(C) NO.18042 OF 2024 6 instalments thereafter, along with accruing interest and other Bank charges, if any.
(ii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to continue with the coercive proceedings against the petitioner in accordance with law.
(iii) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.
Sd/-
N.NAGARESH JUDGE DCS WP(C) NO.18042 OF 2024 7 APPENDIX OF WP(C) 18042/2024 PETITIONER EXHIBITS EXHIBIT P1 THE TRUE COPY CASTE CERTIFICATE DATED 28.10.2022 ISSUED FROM KOLLAM TALUK OFFICE EXHIBIT P2 TRUE COPY OF THE MEDICAL CERTIFICATE ISSUED BY DEPARTMENT OF CARDIOLOGY, MODEL & SUPER SPECIALITY HOSPITAL EMPLOYEES STATE INSURANCE CORPORATION, ASHRAMAM , KOLLAM EXHIBIT P3 TRUE COPY OF THE NOTICE DATED 24.09.2023 ISSUED BY THE RESPONDENT BANK EXHIBIT P4 TRUE COPY OF THE NOTICE DATED 21.03.2024 ISSUED BY THE RESPONDENT BANK