Jose K.V vs Idbi Bank Ltd

Kerala High Court

Jose K.V vs Idbi Bank Ltd 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. 18495 OF 2024
PETITIONER:

         JOSE K.V
         AGED 60 YEARS, S/O VARGHESE,
         KALLARAKKAL HOUSE, CHITHRAPURAM P.O,
         PALLIVASAL IDUKKI, PIN - 685 511.

         BY ADVS.
              N.K.SHYJU
              GIREESH PANKAJAKSHAN
              VISHNU MOHAN
              SAHLA NECHIYIL
              ATHIRA PADMENDHU

RESPONDENT:

         IDBI BANK LTD
         VALIYAPARAMBIL SHOPPING COMPLEX ADIMALI P.O,
         ADIMALI IDUKKI, REPRESENTED BY ITS AUTHORISED
         OFFICER, PIN - 685 561.

         BY ADV
              R.REMA

     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.18495 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 IDBI Bank 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 ₹50 lakhs to the petitioner as Agricultural Loan in the year 2014. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the repayment instalments promptly later. The repayment of loan fell into arrears later. It happened due 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 instalments, the Bank authorities were not yielding. W.P.(C) No.18495 of 2024 :3: 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.P2 notice.

4. The petitioner states that he 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 respondent is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, he 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 respondent, it is submitted that the loan was given to the petitioner in the year 2014. The petitioner committed default in repaying the loan.

6. The Bank repeatedly reminded the petitioner and required him to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no W.P.(C) No.18495 of 2024 :4: 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.P2 was 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 the petitioner as on 23.05.2024 is ₹96,69,217/-.

8. I have heard the learned Counsel for the petitioner and the learned 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 W.P.(C) No.18495 of 2024 :5: loan account 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 his liability.

11. The writ petition is therefore disposed of with the following directions:

(i) The petitioner shall remit the outstanding amount of ₹96,69,217/- in 10 equal and consecutive monthly instalments along with accruing interest and other Bank charges, if any. First of such instalments shall be paid on or before 24.06.2024.

(ii) If the petitioner commits single default in making payments as directed above, the respondent will be at liberty to continue with coercive proceedings against the petitioner W.P.(C) No.18495 of 2024 :6: in accordance with law.

(iii) If the petitioner pays the instalments as directed above, any coercive proceedings against the petitioner shall stand deferred.

Sd/-

N. NAGARESH JUDGE AMR W.P.(C) No.18495 of 2024 :7: APPENDIX OF WP(C) 18495/2024 PETITIONER'S EXHIBITS Exhibit P1 A TRUE COPY OF THE COUNTER RECEIPT DATED 03/08.2023 ISSUED BY THE RESPONDENT BANK.

Exhibit P2 A TRUE COPY OF THE LETTER DATED 16/04/2024, ISSUED BY RESPONDENT BANK.