Sreekumar.V vs Repco Bank Ltd
2021 Latest Caselaw 582 Ker

              IN THE HIGH COURT OF KERALA AT ERNAKULAM

                              PRESENT

          THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN

    THURSDAY, THE 07TH DAY OF JANUARY 2021 / 17TH POUSHA, 1942

                     WP(C).No.20392 OF 2020(Y)


PETITIONER:

              SREEKUMAR.V.
              AGED 58 YEARS
              S/O.VELAPPAN CHETTIYAR, RAKKONATHU PUTHEN VEEDU,
              PEYAD P.O., THIRUVANANTHAPURAM.

              BY ADV. SRI.SABU S.KALLARAMOOLA

RESPONDENT:

              REPCO BANK LTD.
              U.K.EDIFICE COMPLEX, GROUND FLOOR, CHENTHITTA, CHALAI
              P.O., THIRUVANANTHAPURAM-695 001, REPRESENTED BY ITS
              AUTHORISED OFFICER.

              R1 BY ADV. SRI.V.KRISHNA MENON

     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
07.01.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C).No.20392 OF 2020                   2

                                  JUDGMENT

Even though the petitioner has made

various averments and allegations in this

writ petition, when this matter was called

today, Shri.Sabu S.Kallaramoola, his learned

counsel, requested that this Court grant him

two months time to pay off the entire loan

liability.

2. The learned counsel submitted that

the petitioner is now arranging to pay off

the entire outstanding in the loan account

and therefore, that if the afore time is

granted, he will be in a position to close

the loan account and settle the liability

fully.

3. In response, Shri.V.Krishna Menon,

learned Standing Counsel appearing for the

respondent - Bank, submitted that the total

outstanding in the loan account of the

petitioner is Rs.25,78,977/-, as on

31/10/2020; and that at the best,the Bank can

allow him to pay off the same in not more

than 8 equal monthly instalments. He,

however, submitted that no moratorium of two

months as prayed for by him be granted, since

this will only have the effect of delaying

the proceedings further.

4. When I consider the afore submissions,

it is without doubt that the jurisdiction of

this Court in dealing with matters relating

to the steps taken by the Banks and Financial

Institutions under the Securitisation and

Reconstruction of Financial Assets and

Enforcement of Securities Interest Act ('the

SARFAESI Act' for brevity) is extremely

restricted on account of the judgments of the

Hon'ble Supreme Court in Union Bank of India v.

Satyawati Tondon [2010 (8) SCC 110] and in

Authorised Officer, State Bank of Travancore and

Another v. Mathew K.C. [2018 (1) KLT 784].

5. However, since the Bank now agrees that

the outstanding in the loan account can be

paid off by the petitioner in 8 equal monthly

instalments, I am of the view that he can be

given the said latitude, so that he can

either pay the same in such manner or close

the account in two months, as he may desire.

In the afore circumstances, I order this

writ petition and direct the petitioner to pay

an amount of Rs.25,78,977/-, which is stated to

be the outstanding in the loan account as on

31/10/2020, along with all applicable charges

and interest, in 8 equal monthly instalments

commencing from 05/02/2021.

It is needless to say that if the

petitioner pays off the amounts as ordered

above or settles the liability earlier, the

Bank will close the loan account and return

the title documents of the secured assets to

the petitioner/mortgagor, as the case may be,

without any avoidable delay thereafter.

It also goes without saying that if the

petitioner commits any default of the afore

directions, the Bank will be at liberty to

continue with the proceedings under the

SARFAESI Act from the stage at which it is

available today, without having to secure any

further orders from this Court.

Sd/-

DEVAN RAMACHANDRAN

JUDGE

MC/7.1.2021

APPENDIX PETITIONER'S/S EXHIBITS:

EXHIBIT P1 TRUE COPY OF REQUEST DATED 20.04.2020 SUBMITTED BEFORE THE RESPONDENT SEEKING MORATARIUM BENEFIT.

EXHIBIT P2 TRUE COPY OF NOTICE DATED 05.09.2020 ISSUED BY THE RESPONDENT BANK.

MC

                     (TRUE COPY)               PA TO JUDGE