Vijaya Babu vs Union Bank Of India
2022 Latest Caselaw 3830 Ker

              IN THE HIGH COURT OF KERALA AT ERNAKULAM
                              PRESENT
          THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS
     TUESDAY, THE 5TH DAY OF APRIL 2022 / 15TH CHAITHRA, 1944
                      WP(C) NO. 12347 OF 2022
PETITIONER:

          SMT.VIJAYA BABU
          AGED 50 YEARS
          W/O.BABU M.S., MADAPPURAM HOUSE, MALAYATTUR,
          ILLITHODE - 683 587.

          BY ADV E.V.MOLY


RESPONDENT:

          UNION BANK OF INDIA
          REGIONAL OFFICE, ERNAKULAM RURAL,
          NEAR KSRTC BUS STATION,
          GOVT. HOSPITAL ROAD, ALUVA,
          ERNAKULAM - 683 101
          REP. BY ITS AUTHORIZED OFFICER.
OTHER PRESENT:

          SRI A.S.P KURUP- SC.


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
05.04.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 12347 OF 2022

                                  2




              BECHU KURIAN THOMAS, J.
            ===========================
                W.P.(C) No.12347 of 2022
            ============================
                Dated this the 5th day of April, 2022

                            JUDGMENT

Petitioner had availed a cash credit facility from the

respondent bank. Petitioner as borrower from the respondent

bank, has committed default in repayment. Consequently,

proceedings have been initiated by the bank for recovery of the

amounts due.

2. During the course of hearing, petitioner has confined the

relief to an opportunity for repaying the overdue amount in

instalments and to obtain regularisation of the loan account.

3. It was submitted on behalf of the respondent bank that

the petitioner committed default in repayment and the overdue

amount under the cash credit facility is Rs.4,50,000/-. It was WP(C) NO. 12347 OF 2022

further submitted by the respondent bank that the bank is willing

to accept the overdue amount and renew the cash credit facility,

provided, the petitioner repays the same within reasonable

instalments and further furnishes the required documents for

renewing the cash credit facility. It was further submitted that

though proceedings for recovery have been initiated, as a matter

of indulgence, the respondent bank is willing to accept repayment

of the overdue amount in limited instalments and regularise the

loan account.

4. Accordingly, there will be a direction to the respondent

bank to accept the repayment of the overdue amount of

Rs.4,50,000/- and renew the cash credit facility on the petitioner

clearing the entire defaulted interest under the facility. The

renewal shall also be subject to the petitioner submitting the

required financial documents as sought for by the bank.

5. I have heard Smt.Moly.E.V, learned counsel for the WP(C) NO. 12347 OF 2022

petitioner as well as Shri.A.S.P.Kurup, learned counsel for the

respondent.

6. Having regard to the circumstances of the case and the

situation now prevailing, apart from the submissions made as

recorded above, I am of the view that the petitioner can be

granted an opportunity to repay the overdue amount in three

instalments and thereafter, if the amount so directed is repaid

within the time as directed above, to have the credit facility

renewed.

7. Accordingly, there will be a direction to the respondent

bank to accept repayment of the entire overdue amount of

Rs.4,50,000/- along with bank charges from the petitioner and

renew the cash credit facility on the following conditions:

(a) The overdue amount of Rs.4,50,000/- shall be repaid in three equated monthly instalments.

(b) The first instalment shall be paid on or before 05.05.2022 and the remaining WP(C) NO. 12347 OF 2022

instalments shall be paid on or before the 5 th of every succeeding month.

(c) Petitioner shall furnish the required financial documents to renew the credit facility.

(d) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.

(e) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.

Sd/-

BECHU KURIAN THOMAS JUDGE ssa/ WP(C) NO. 12347 OF 2022

APPENDIX OF WP(C) 12347/2022

PETITIONER'S EXHIBIT

Exhibit P1 THE TRUE COPY OF THE DEMAND NOTICE DATED 21/02/2022.