Kerala High Court
Roseyk.G vs M/S. Poonawala Fincorp Ltd on 3 January, 2022
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN
MONDAY, THE 3RD DAY OF JANUARY 2022 / 13TH POUSHA, 1943
WP(C) NO. 25232 OF 2021
PETITIONER/S:
1 ROSEYK.G., AGED 44 YEARS
W/O.PAUL.C.S., CHULLICKAL PUTHENPURAYIL HOUSE,
THAMMANIMATTAM P.O., RAMAMANGALAM, MUNVATTUPUZHA
TALUK, ERNAKULAM DISTRICT, PIN-686 663.
2 PAUL.C.S., AGED 49 YEARS
S/O.SCARIA, CHULLICKAL PUTHENPURAYIL HOUSE,
THAMMANIMATTAM P.O., RAMAMANGALAM, MUNVATTUPUZHA
TALUK, ERNAKULAM DISTRICT, PIN-686 663.
BY ADVS.
IEANS.C.CHAMAKKALA
SUNIL JACOB
RESPONDENT/S:
1 M/S. POONAWALA FINCORP LTD.,
(EARLIER KNOWN AS MAGMA FINCORP LTD.), HAVING
ITS REGISTERED OFFICE AT DEVELOPMENT HOUSE,
24 PARK STREET, CALCUTTA-700 016.
2 THE MANAGER, POONAWALA FINCORP LTD.
(EARLIER KNOWN AS MAGMA FINCORP LTD.),
REGIONAL OFFICE, JAIN TOWER, FIRST FLOOR,
OPPOSITE POWER HOUSE JUNCTION, BYPASS ROAD,
VYTLA, ERNAKULAM, PIN-682 019.
3 SHAJI.R., S/O.RAMAKRISHNAN, ASSISTANT MANAGER,
MAGMA FINCORP ;TD., REGIONAL OFFICE, JAIN TOWER,
FIRST FLOOR, OPPOSITE POWER HOUSE JUNCTION,
BYPASS ROAD, VYTLA, ERNAKULAM, PIN-682 019.
-2-
W.P.(C). No.25232 of 2021
BY ADVS.
PHILIP T.VARGHESE
THOMAS T.VARGHESE
ACHU SUBHA ABRAHAM
V.T.LITHA
K.R.MONISHA
SHRUTHI SARA JACOB
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 03.01.2022, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
-3-
W.P.(C). No.25232 of 2021
P.V.KUNHIKRISHNAN, J.
=================================================
W.P.(C).No. 25232 of 2021
=============================================================
Dated this the 3rd day of January, 2022
JUDGMENT
The above writ petition is filed with following prayers:
"a. Call for the records leading to Exhibit P4 order.
b. Issue a writ of mandamus commanding the
respondents bank to permit the petitioners to remit
the overdue amount and thereby regularize the loan
account.
c. Issue such other writ order or direction as may be
necessary in the facts and circumstances of the
case."
2. The petitioners availed a hypothecation loan for an
amount of Rs.12,50,000/- from the 1st respondent Institution as
per Ext.P1 hypothecation agreement for purchase of an Innova
car for using it as tourist taxi. The period of repayment of the
loan account was sixty months with monthly installment of
Rs.29,480/-. The repayment period will expire only in the year
2024. According to the petitioners, they remitted 12 monthly
W.P.(C). No.25232 of 2021
installments towards the loan account. There are some default
in repaying the loan amount because of the pandemic situation
and other financial difficulties. Now the 1 st respondent initiated
recovery proceedings. Ext.P4 is the order passed by the
Arbitrator. In such situation this writ petition is filed.
3. Heard the learned counsel for the petitioners and the
learned Standing Counsel for respondents.
4. When this writ petition came up for consideration on
16.11.2021, this Court passed the following order:
"Admit.
Issue urgent notice by speed post to respondents 1 to
3.
There will be an interim order as prayed for, on
condition that the petitioners remit an amount of Rs.1
lakh on or before 31.12.2021.
Post on 03.01.2022."
5. The counsel for the petitioners reiterated the
contentions in the writ petition and prayed for installment
W.P.(C). No.25232 of 2021
facility. It is submitted that an amount of Rs.1 lakh is already
paid as per the interim order.
6. On the other hand, the Standing Counsel for the
respondents submitted that as on today the defaulted amount is
Rs.1,97,161/-. If the petitioners are ready to pay an amount of
rupees one lakh on or before 31.01.2022, it is submitted that the
petitioners can regularise the loan account by paying the
balance defaulted amount in two installments, along with the
regular installments. It is also submitted that, if any default
committed by the petitioners, the respondents may be allowed
to continue with the recovery proceedings.
7. The counsel for the petitioners submitted that the
petitioners are ready to accept the above offer from the
respondents and the default clause also can be included as a
condition.
In such circumstances, this writ petition is disposed of in
W.P.(C). No.25232 of 2021
the following manner:
1. The petitioners will deposit an amount of
Rs.1,00,000/- (Rupees one lakh only) on or before
31.01.2022 before the 1st respondent.
2. If condition No. 1 is complied with, the petitioners
are free to pay the balance amount of Rs.97,161/-
together with subsequent accrued interest, by way
of three equal monthly installments along with the
regular installments of the loan.
3. If any of the installments are defaulted by the
petitioners, the respondents are free to continue
with the recovery proceedings.
sd/-
P.V.KUNHIKRISHNAN
JUDGE
das
W.P.(C). No.25232 of 2021
APPENDIX OF WP(C) 25232/2021
PETITIONER EXHIBITS
Exhibit P1 THE TRUE COPY OF THE HYPOTHECATION
AGREEMENT.
Exhibit P2 THE TRUE COPY OF THE NOTICE ISSUED BY
THE 2ND RESPONDENT TO THE PETITIONERS
DATED 17.08.2021.
Exhibit P3 THE TRUE COPY OF THE PETITION FILED BY
THE RESPONDENTS UNDER S.17 OF THE
ARBITRATION AND CONCILIATION ACT.
Exhibit P4 ORDER DATED 22.10.2021 PASSED BY THE
SOLE ARBITRATOR.
Exhibit P5 TRUE COPY OF THE MINUTES OF THE
MEETING DATED 22.10.2021 HELD BY THE
SOLE ARBITRATOR.
Exhibit P6 TRUE COPY OF THE PRINT OUT SHOWING THE
NON-DELIVERY OF THE EMAIL SEND BY THE
PETITIONERS TO THE ARBITRATOR.
