Muraleedharan K vs M/S Sundaram Home Finance Limited

Kerala High Court

Muraleedharan K vs M/S Sundaram Home Finance Limited 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. 17681 OF 2024
PETITIONERS:

    1    MURALEEDHARAN K
         AGED 55 YEARS, S/O. KUNJUPANIKKAN,
         VALUTHARA PADEETTETHIL ARUNOOTTIMANGALAM PO.,
         MAVELIKKARA, ALAPPUZHA, PIN - 69 011.

    2    LILLY A.
         AGED 56 YEARS, W/O. MURALEEDHRAN,
         VALUTHARA PADEETTETHIL ARUNOOTTIMANGALAM PO.,
         MAVELIKKARA, ALAPPUZHA, PIN - 690 110.

         BY ADVS.
              ALEX K.JOHN
              SRAYAS JOSEPH
              REMYA MURALI
              REENA JACOB
              NINAN THOMAS

RESPONDENT:

         M/S SUNDARAM HOME FINANCE LIMITED
         SUNDARAM TOWERS, 46, WHITES ROAD,
         CHENNAI -600014, REPRESENTED BY ITS AUTHORISED
         OFFICER, ABU ROASHAN ANDREWS, S/O. JOSHY
         CYRIAC, AREA OFFICE, 2ND FLOOR, ELIZABETH
         ALEXANDER MEMMORAIAL BUILIDNG, MARINE DRIVE,
         OPP. RAINBOW BRIDGE, ERNAKULAM, PIN - 682 031.

         BY ADV
              VARGHESE C.KURIAKOSE

     THIS WRIT PETITION (CIVIL) HAVING COME UP       FOR
ADMISSION ON 21.05.2024, THE COURT ON THE SAME       DAY
DELIVERED THE FOLLOWING:
 W.P.(C) No.17681 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 M/s Sundaram Home Finance Limited to the petitioners, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

2. The respondent paid ₹20 lakhs to the petitioners as Housing 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 instalments promptly later. The repayment of loan fell into arrears later due to financial crisis. It happened due to reasons beyond the control of the petitioners.

3. Though the petitioners requested the respondent to permit the petitioners to repay the overdue amounts in W.P.(C) No.17681 of 2024 :3: easy monthly instalments, the respondent 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.P1 notice.

4. The petitioners state that they are 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 respondent is 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 respondent and denied all the statements made by the petitioners. On behalf of the respondent, 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 respondent repeatedly reminded the petitioners and required them to clear the dues. The W.P.(C) No.17681 of 2024 :4: petitioners deliberately omitted to do so. The petitioners loan account was declared as NPA in the year 2022. In the circumstances, the respondent had no other go, than to proceed against the petitioners invoking, the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Ext.P1 was issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the respondent.

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 petitioners to clear the dues. The Standing Counsel submitted that the outstanding amount due to the respondent from the petitioners is ₹16,16,699/- and the overdue amount as on 17.05.2024 is ₹2,46,448/-.

8. I have heard the learned Counsel for the petitioners and the learned Standing Counsel representing W.P.(C) No.17681 of 2024 :5: the respondent.

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 repaymentof the account occurred lately due to reasons beyond the control of the petitioners. The petitioners have provided substantial security which will safeguard the interest of the respondent.

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 an amount of ₹75,000/- within a period of one month from today and the balance overdue amount in subsequent consecutive 10 equal monthly instalments thereafter, along with accruing interest and other administrative charges, if any.

:6:

(ii) If the petitioners commit single default in making payments as directed above, the respondent 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 pay the instalments as directed above, any coercive proceedings against the petitioners shall stand deferred.

Sd/-

N. NAGARESH JUDGE AMR W.P.(C) No.17681 of 2024 :7: APPENDIX OF WP(C) 17681/2024 PETITIONERS' EXHIBITS Exhibit P1 THE TRUE COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER 06.04.2024.

Exhibit P2            THE TRUE COPY OF THE ORDER PRONOUNCED
                      BY   THE    HON'BLE  CHIEF   JUDICIAL
                      MAGISTRATE COURT, ALAPPUZHA IN CMP

NO.1212/2024 IN M.C.NO.224/2024 DATED 23.03.2024.