Thankamani vs The Authorized Officer

Kerala High Court

Thankamani vs The Authorized Officer 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. 15297 OF 2024
PETITIONERS:

     1        THANKAMANI
              AGED 42 YEARS
              W/O ANANDAN T,
              MALAMKUNNU,T.T.ROAD,
              BEKAL P.O,
              KASARAGOD DISTRICT,
              PIN - 671318

     2        ANANDAN TRIKKANNAD
              AGED 50 YEARS
              S/O KUNJIKANNA P,
              MALAMKUNNU,T.T.ROAD,
              BEKAL P.O,
              KASARAGOD DISTRICT,
              PIN - 671318
              BY ADVS.
              V.SHYAM
              SAHEERA K.
              P.ARUN
RESPONDENT:

              THE AUTHORIZED OFFICER
              THE KERALA STATE CO-OPERATIVE BANK LTD,
              PALAKUNNU EVENING BRANCH,
              ALBAYAN CENTER,PALAKUNNU,
              BEKAL P.O KASARGODE,
              PIN - 671318

              BY SRI. M.SASINDRAN, 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.15297 OF 2024
                               2



                         JUDGMENT

Dated this the 21st day of May, 2024 The petitioners are husband and wife. They availed a loan of ₹20 lakhs and ₹2 lakhs respectively for constructing a house. The loan was availed mortgaging property having an extent of 41 cents in Kottikalam Village in Kasargod.

2. The petitioners state that due to reasons beyond their control, there were some defaults in making the repayment. The Bank has initiated coercive proceedings invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. When notices were issued, the petitioners earlier approached this Court filing W.P.(C.) No. 6630/2022. This Court disposed of the writ petition permitting the petitioners to pay the overdue amount of ₹11,52,959/- in 15 equated monthly installments.

WP(C) NO.15297 OF 2024 3

3. The first installment ought to have been paid on or before 29.03.2022. The petitioners could not adhere to the time schedule.

4. The petitioners state that the respondent is now going to take over physical possession of the property mortgaged by the petitioners. The petitioners have sold a piece of their property and have obtained substantial amounts. The petitioners are ready to make substantial payment towards clearance of overdue amount within a period of one month and the balance amount in monthly installments.

5. Standing Counsel entered appearance and resisted the writ petition. The Standing Counsel pointed out that there was deliberate default in repayment of the loan. The petitioners were required to maintain the loan account, making monthly installments. The petitioners omitted to do so. It is in these circumstances, that the respondent-Bank was forced to initiate proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of WP(C) NO.15297 OF 2024 4 Security Interest Act, 2002.

6. The respondent has issued due notice under the SARFAESI Act, 2002. The proceedings are not vitiated with any illegality. However, if the petitioners make a bulk payment immediately towards the overdue amount and clear the balance overdue amount immediately thereafter, the question of regularisation of the loan account of the petitioners can be considered. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioners as on 21.05.2024 is ₹29,24,758/- and the overdue amount as on 21.05.2024 is ₹20,83,630/-.

7. I have heard the counsel for the petitioners and the Standing Counsel representing the respondent Bank.

8. As the petitioners had availed the loan for the construction of a house and since the petitioners have now gathered amounts selling other properties and are now in a position to clear the overdue amount, I am of the view that the petitioners can be granted a short time for clearing the WP(C) NO.15297 OF 2024 5 overdue amount.

9. The writ petition is accordingly disposed of with the following directions:

(i) The petitioners shall remit an amount of ₹10,00,000/- within a period of one month from today and the balance overdue amount in subsequent consecutive five equal monthly instalments thereafter, along with accruing interest and other Bank charges, if any.

(ii) After clearing the overdue amounts as directed above, the petitioners shall approach the Bank for regularisation of the loan account, in which case, the respondent shall consider their application sympathetically.

(iii) If the petitioners commit default in making payments as directed above, the respondent will be at liberty to continue with WP(C) NO.15297 OF 2024 6 the coercive proceedings against the petitioners in accordance with law.

(iv) The petitioners shall also pay current EMIs along with the aforesaid payments.

(v) If the petitioners make payments as directed above, coercive proceedings, if any, against the petitioners shall stand deferred.

Sd/-

N.NAGARESH JUDGE DCS WP(C) NO.15297 OF 2024 7 APPENDIX OF WP(C) 15297/2024 PETITIONER EXHIBITS EXHIBIT-P1 A TRUE COPY OF THE POSSESSION NOTICE ISSUED BY THE RESPONDENT DATED 23.02.2022 EXHIBIT-P2 A TRUE COPY OF THE JUDGEMENT OF THIS HON'BLE COURT IN W.P.(C ) NO.6630/2022 DATED 02/03/2022.