N. Stella vs Authorized Officer, Repco Home Finance ...

Kerala High Court

N. Stella vs Authorized Officer, Repco Home Finance ... on 23 May, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

        IN THE HIGH COURT OF KERALA AT ERNAKULAM
                        PRESENT
          THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 23RD DAY OF MAY 2024 / 2ND JYAISHTA, 1946
                WP(C) NO. 17162 OF 2024
PETITIONER:

         N. STELLA,
         AGED 57 YEARS, W/O MOHANAN,
         PLAVARATHALA PUTHEN VEEDU, KANNARAVILA,
         NELLIMOODU.P.O., EYYATTINKARA,
         THIRUVANANTHAPURAM, PIN - 695524.

         BY ADVS.
         R.T.PRADEEP
         P.BIJIMON
         M.BINDUDAS
         ABIN P. SHAJU
         SURAJ S. KUMAR
         NIRANJAN T. PRADEEP


RESPONDENTS:

    1    AUTHORIZED OFFICER,
         REPCO HOME FINANCE LIMITED,
         REGISTERED OFFICE, REPCO TOWER,
         NO.33, NORTH USMAN ROAD, T. NAGAR,
         CHENNAI, PIN - 600017.

    2    MANAGER,
         REPCO HOME FINANCE LIMITED,
         OPP.STATE BANK OF INDIA,KARAMANA,
         KARAMANA.P.O., THIRUVANANTHAPURAM,
         PIN - 695002.

         BY ADV.SRI.P.PAULOCHAN ANTONY

     THIS WRIT PETITION (CIVIL) HAVING COME UP      FOR
ADMISSION ON 23.05.2024, THE COURT ON THE SAME      DAY
DELIVERED THE FOLLOWING:
 W.P.(C)No.17162 of 2024
                               :2:




                      JUDGMENT

Dated this the 23rd day of May, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the REPCO Home Finance Limited to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

2. The respondents paid ₹10 lakhs in the year 2014 and ₹3 lakhs in the year 2016 as Housing Loan and ₹6 lakhs as Home Renovation Loan in the year 2017 to the petitioner. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advances, she could not pay the repayment W.P.(C)No.17162 of 2024 :3: instalments promptly later due to treatment of the parents of her husband. The repayment of loans fell into arrears. It happened due to reasons beyond the control of the petitioner.

3. Though the petitioner requested the respondents to permit the petitioner to repay the overdue amounts in easy monthly instalments, the respondents 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 petitioner states that she is 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 respondents are permitted to continue with the coercive W.P.(C)No.17162 of 2024 :4: 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 respondents and denied all the statements made by the petitioner. On behalf of the respondents, it is submitted that the loans were given to the petitioner in the years 2014, 2016 and 2017. The petitioner committed default in repaying the loans.

6. The respondents repeatedly reminded the petitioner and required her to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the respondents 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 Ext.P1 notice was issued in these circumstances. The loan accounts were W.P.(C)No.17162 of 2024 :5: declared as NPA in the year 2022. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the respondents.

7. The Standing Counsel, however, submitted that if the petitioner is 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 respondents from the petitioner as on 23.05.2024 is ₹20,08,119/- and the overdue amount is ₹7,44,630/-.

8. I have heard the counsel for the petitioner and the Standing Counsel representing the respondents.

9. The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan accounts initially. The default in repayment occurred W.P.(C)No.17162 of 2024 :6: lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the respondents.

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 ₹1 lakh within a period of one month from today.

(ii) The petitioner shall remit the balance overdue amount in subsequent consecutive ten equal monthly instalments thereafter, along with accruing interest and other administrative charges, if any. W.P.(C)No.17162 of 2024 :7:

(iii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioner in accordance with law.

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

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

Sd/-

N. NAGARESH JUDGE ams W.P.(C)No.17162 of 2024 :8: APPENDIX OF WP(C) 17162/2024 PETITIONER'S EXHIBIT Exhibit P1 TRUE COPY OF E-AUCTION SALE NOTICE (S. NO.03/407) DATED 27.3.2024 BY 1ST RESPONDENT TO PETITIONER.