Girija Satheesh Kumar vs Peoples Urban Co-Operative Bank Ltd No. ...

Kerala High Court

Girija Satheesh Kumar vs Peoples Urban Co-Operative Bank Ltd No. ... 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. 16348 OF 2024
PETITIONERS:

    1    GIRIJA SATHEESH KUMAR
         AGED 60 YEARS, W/O SATHEESH KUMAR,
         ALINGAL HOUSE, MAHATHMA GRANDHALAYA ROAD,
         VADUTHALA P O, ERNAKULAM, PIN - 682023.

    2    SATHEESH KUMAR A V
         AGED 65 YEARS, S/O VELAYUDHAN,
         ALINGAL HOUSE, MAHATHMA GRANDHALAYA ROAD,
         VADUTHALA P O, ERNAKULAM, PIN - 682023.

         BY ADV S.DILEEP (KALLAR)


RESPONDENTS:

   1     PEOPLES URBAN CO-OPERATIVE BANK LTD NO. 51
         VADUTHALA BRANCH, VADUTHALA, ERNAKULAM,
         REPRESENTED BY ITS SECRETARY, PIN - 682023.

   2     THE AUTHORIZED OFFICER
         PEOPLES URBAN CO-OPERATIVE BANK LTD NO.51,
         HEAD OFFICE, TRIPUNITHURA,
         ERNAKULAM, PIN - 682301.

         BY ADVS.
         DEVAPRASANTH P.J
         SMINI JOSE


     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.16348 of 2024
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                      JUDGMENT

Dated this the 23rd day of May, 2024 The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the People's Urban Co-operative Bank Limited 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 ₹25 lakhs to the petitioners as Term Loan in the year 2021. 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 due to Covid- 19 pandemic. The repayment of loan fell into arrears. It W.P.(C)No.16348 of 2024 :3: happened due to reasons beyond the control of the petitioners.

3. Though the petitioners requested the Bank to permit the petitioners to repay the overdue amounts in easy monthly instalments, 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.P1 and P3 notices.

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 respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the W.P.(C)No.16348 of 2024 :4: 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 2021. 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 provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Exts.P1 and P3 notices were issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

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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 Bank from the petitioners is ₹20,77,971/- and the overdue amount as on 23.05.2024 is ₹3,90,497/-.

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

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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 overdue amount of ₹3,90,497/- in 12 equal and consecutive monthly instalments along with accruing interest and other Bank charges, if any. The first instalment shall be paid on or before 24.06.2024.

(ii) If the petitioners commit default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioners in accordance with law. W.P.(C)No.16348 of 2024 :7:

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

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

Sd/-

N. NAGARESH JUDGE ams W.P.(C)No.16348 of 2024 :8: APPENDIX OF WP(C) 16348/2024 PETITIONER'S EXHIBITS Exhibit P1 THE TRUE COPY OF THE POSSESSION NOTICE BEARING REF NO. ML 173103202100028 DATED 06/03/2024 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONERS.

Exhibit P2 THE TRUE COPY OF THE RELEVANT PAGES OF THE PASS BOOK STANDS IN THE NAME OF THE 1ST PETITIONER MAINTAINED WITH THE 1ST RESPONDENT SHOWING THE DETAILS OF PAYMENTS.

Exhibit P3 THE TRUE COPY OF THE SALE NOTICE BEARING NO. ML 173103202100028 DATED 12/04/2024.