Rajasekhar G K vs Karnataka Bank Ltd
2022 Latest Caselaw 9624 Ker

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
                 THE HONOURABLE MR. JUSTICE GOPINATH P.
     THURSDAY, THE 25TH DAY OF AUGUST 2022 / 3RD BHADRA, 1944
                        WP(C) NO. 25984 OF 2022
PETITIONER/S:

          RAJASEKHAR G K
          AGED 48 YEARS
          S/O. GOPINATHAN NAIR, FLAT NO. 4 B, MANSIONS, PUJA
          RESIDENCY, NEAR KANNAMOOLA BRIDGE, PETTA,
          THIRUVANANTHAPURAM, PIN - 695024
          BY ADVS.
          RENI JAMES
          BINIYAMIN K.S.


RESPONDENT/S:

    1     KARNATAKA BANK LTD
          REPRESENTED BY ITS AUTHORIZED OFFICER, ASSET RECOVERY
          MANAGEMENT BRANCH, KARNATAKA BANK BUILDING, KODIALBAIL,
          MANGALURU , PIN - 575003
    2     THE AUTHORIZED OFFICER/CHIEF MANAGER
          KARNATAKA BANK LTD., THIRUVANATHAPURAM BRANCH,
          THIRUVANANTHAPURAM, PIN - 695023
          BY ADV SUJESH KUMAR K P


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
25.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 25984 OF 2022                        2



                                    JUDGMENT

Petitioner availed thee separate loans namely, an

overdraft facility, an emergency credit facility and a term

loan from the respondent bank. Petitioner has approached

this Court challenging proceedings initiated by the

respondent Bank under the provisions of the Securitisation

and Reconstruction of Financial Assets and Enforcement of

Security Interest Act, for recovery of the amounts due from

the petitioner in respect of these loans.

2. When this matter is taken up for consideration

today, petitioner has confined the relief to an opportunity for

repaying the defaulted amounts in instalments and to obtain

regularisation of the loan account.

3. Learned Standing counsel appearing for the

respondent bank submits that in respect of the overdraft

facility and emergency credit facility availed by the

petitioner, the accounts cannot be regularised and the entire

dues in respect of those loans have to be paid in full. It is

submitted that the term loan account can be regularised. It

is also submitted that in respect of the overdraft facility

availed by the petitioner, the outstanding amount is

Rs.33,46,096/- (Rupees thirty three lakhs forty six thousand

and ninety six only) . In respect of the emergency credit

facility availed by the petitioner (on account of Covid-19

pandemic) the total outstanding amount is Rs.6,58,397/-

(Rupees six lakhs fifty eight thousand three hundred and

ninety seven only). In respect of the term loan availed by

the petitioner, the overdue amount is Rs.48,558/- (Rupees

forty eight thousand five hundred and fifty eight only) and

the petitioner can be allowed to regularise the same by

paying the overdue amount.

4. 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 in respect of the

term loan, the petitioner can be granted an opportunity to

repay the overdue amount in a single instalment and if the

amount so directed is repaid within the time as directed

above, to have the loan account regularised. In respect of

overdraft facility and emergency credit facility availed by the

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

granted an opportunity to repay the outstanding amount in

eighteen instalments.

5. Accordingly, there will be a direction to the

respondent bank to accept repayment of the entire

outstanding amount of Rs.40,04,493/- (Rupees forty lakhs

four thousand four hundred and ninety three only) due under

the over draft facility and emergency credit facility along

with bank charges from the petitioner on the following

conditions:

(i) The entire outstanding amount of Rs.40,04,493/- (Rupees forty lakhs four thousand four hundred and ninety three only) shall be repaid in eighteen equated monthly instalments along with any accrued interest/costs;

(ii) The first instalment shall be paid on or before 16.09.2022 and the subsequent instalments shall be paid on or before the 15th day of the succeeding months;

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

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

6. In respect of the term loan availed by the

petitioner, there will be a direction to the respondent bank

to accept repayment of the entire overdue amount of

Rs.48,558/- (Rupees forty eight thousand five hundred and

fifty eight only) along with any accrued interest/bank

charges from the petitioner on or before 16.09.2022 and

regularise the loan account of the petitioner on the following

conditions:

(i) The overdue amount of Rs.48,558/- (Rupees forty eight thousand five hundred and fifty eight only) along with any accrued interest and charges shall be repaid on or before 16.09.2022;

(ii) Petitioner shall continue to pay the regular instalments due on the loan;

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

(iv) 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/-

GOPINATH P.

JUDGE ajt

APPENDIX OF WP(C) 25984/2022

PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE POSSESSION NOTICE DATED 28.06.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P2 TRUE COPY OF THE BANK STATEMENT