Kerala High Court
M.S.Jayachandran vs Catholic Syrian Bank on 1 June, 2021
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 1ST DAY OF JUNE 2021/11TH JYAISHTA, 1943
WP(C) NO. 11620 OF 2021
PETITIONERS:
0
1 M.S.JAYACHANDRAN, AGED 48,
S/O.SIVASANKARA PILLA,
MUKALUVILA KIZHAKETHIL (H), KAKKAKUNNU P.O.,
SOORANADU SOUTH, KOLLAM.
2 INDIRA BHAI AMMA, AGED 78,
W/O.SIVASANKARA PILLA,
MUKALUVILA KIZHAKETHIL (H), KAKKAKUNNU P.O.,
SOORANADU SOUTH, KOLLAM.
3 KAVITHA A.G., AGED 45, W/O.JAYACHANDRAN,
MUKALUVILA KIZHAKETHIL (H), KAKKAKUNNU P.O.,
SOORANADU SOUTH, KOLLAM.
BY ADVS.
K.R.VINOD
M.S.LETHA
K.S.SREEREKHA
K.V.ARUN KUMAR
T.S.JIBU
RESPONDENTS:
0
1 CATHOLIC SYRIAN BANK LTD.,
REPRESENTED BY ITS BRANCH MANAGER,
PUTHIYAKAVU BRANCH, KARUNAGAPALLY,
KOLLAM PIN 690 518.
2 THE AUTHORIZED OFFICER,
CATHOLIC SYRIAN BANK LTD.,
SOUTH KERALA ZONAL OFFICE,
MALANKARA BUILDING COMPLEX,
PALAYAM, THIRUVANANTHAPURAM 695 034.
BY ADV.SRI.C.A. JOY, SC FOR R1-R2
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 01.06.2021, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) No.11620/2021
:2 :
JUDGMENT
~~~~~~~~~
Dated this the 1st day of June, 2021
The petitioners have filed this writ petition seeking
to direct the respondents to permit the petitioners to pay the
amount of interest in arrears payable by them on the cash
credit facility, amounting to `12,02,810/- by 20 monthly
instalments and to regularise and restore the cash credit
facility.
2. The 1st petitioner availed cash credit facility of
`75,00,000/- from the 1st respondent-Bank. Petitioners 2
and 3 stood as guarantors to the facility. According to the 1 st
petitioner, due to Covid-19 pandemic in the year 2020, the
business had to be closed down and the 1 st petitioner could
not make prompt payments.
3. According to the petitioners, the overdue interest
is `12,02,810/- and the 1st petitioner can pay the outstanding
WP(C) No.11620/2021
interest in 20 monthly instalments. However, without giving
the petitioners sufficient time to clear the overdues, the
respondents have issued Ext.P2 notice threatening that
coercive proceedings will be taken under the Securitisation
and Reconstruction of Financial Assets and Enforcement of
Security Interest (SARFAESI) Act, 2002. Hence, the
petitioners are before this Court.
4. The Standing Counsel representing respondents
1 and 2, on instructions, submitted that the writ petition is not
maintainable. Huge amounts are in arrears from the 1 st
petitioner towards cash credit facility extended to him and in
spite of repeated reminders, the 1 st petitioner has not paid
the outstanding arrears. In case this Court grants the
petitioners time to repay in instalments, 20 monthly
instalments cannot be granted to the petitioners and only a
short breathing time may be extended.
5. Heard the learned counsel for the petitioners and
the learned Standing Counsel representing respondents 1
and 2.
WP(C) No.11620/2021
6. The outstanding interest due from the 1 st
petitioner would be around `13 lakhs. As the interest
happened to accrue and fall due in the cash credit facility
due to the pandemic situation, this Court is of the considered
opinion that a breathing time should be given to the
petitioners to clear the overdue interest in reasonable
monthly instalments.
In the circumstances, the writ petition is disposed
of permitting the petitioners to pay the accrued interest in
eight equal monthly instalments. The petitioners shall remit
the first instalment on or before 01.07.2021. If the
petitioners make two consecutive defaults in paying monthly
instalments as permitted above, the respondents will be at
liberty to proceed against the petitioners in accordance with
law.
Sd/-
N. NAGARESH, JUDGE
aks/02.06.2021
WP(C) No.11620/2021
APPENDIX
EXHIBIT P1 THE COPY OF THE STATEMENT OF ACCOUNT
ISSUED BY THE 1ST RESPONDENT BANK
DURING THE PERIOD 22.04.2020 TILL
30.04.2021.
EXHIBIT P2 THE COPY OF THE NOTICE DATED
05.05.2021 ISSUED BY THE 2ND
RESPONDENT U/S.13(2) OF THE SARFAESI
ACT.
ncd
