Moideen vs The Federal Bank
2022 Latest Caselaw 10687 Ker

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
                THE HONOURABLE MR. JUSTICE GOPINATH P.
     FRIDAY, THE 21ST DAY OF OCTOBER 2022 / 29TH ASWINA, 1944
                       WP(C) NO. 33596 OF 2022
PETITIONERS:

    1     MOIDEEN
          AGED 70 YEARS, S/O KUNHABDULLA,
          AYDAKKANDY HOUSE,RINGATH (P.O),
          KOZHIKODE (D.T),PIN - 673523

    2     2. RAFEEQUE THARAVATTATH
          AGED 47 YEARS, S/O MOIDEEN,
          AYDAKKANDY HOUSE, IRINGATH (P.O),
          KOZHIKODE (D.T),PIN - 673523

    3     AMINA
          AGED 63 YEARS, S/O MOIDEEN,
          AYDAKKANDY HOUSE,IRINGATH (P.O),
          KOZHIKODE (D.T),PIN - 673523

          BY ADVS.
          H.PRAVEEN (KOTTARAKARA)
          M.PREMKUMAR


RESPONDENTS:

    1     THE FEDERAL BANK
          REPRESENTED BY IT'S CHIEF MANAGER,
          THE FEDERAL BANK ZONAL OFFICE,
          FEDERAL TOWERS, MAVOOR ROAD,
          KOZHIKODE,, PIN - 673016

    2     THE AUTHORIZED OFFICER,
          THE FEDERAL BANK,
          LCRD KOZHIKODE DIVISION,
          FEDERAL TOWERS, MAVOOR ROAD,
          KOZHIKODE, PIN - 673016

                 BY ADV POULOCHAN ANTONY


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
21.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 W.P (C) No.33596/2022                     -2-

                                  JUDGMENT

Petitioners availed four different loans from the respondent bank on 29-11-

2021. This includes a housing loan, a personal loan and two mortgage loans. On

default being committed, proceedings have been initiated under the provisions of

the Securitisation and Reconstruction of Financial Assets and Enforcement of

Security Interest Act (hereinafter referred to as the SARFAESI Act) to recover the

amounts due from the petitioners.

2. During the course of hearing, petitioners have confined the relief to an

opportunity for repaying the overdue amount in instalments and to obtain

regularisation of the loan accounts.

3. Learned counsel for the respondent bank states that the total amounts

due are in excess of Rs.1,00,00,000/- and soon after disbursal the account has

become a Non-Performing Asset. It is submitted that the over due amount in

respect of the four loans together is Rs.12,64,936/-. 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 accounts.

4. I have heard the learned counsel for the petitioners as well as the

learned Standing Counsel for the respondent Bank.

5. Having regard to the facts and circumstances of the case and the

situation now prevailing, apart from the submissions made as recorded above and

also taking into account the fact that the petitioners have undertaken to clear off the

overdue amount along with regular EMIs, I am of the view that the petitioners can

be granted an opportunity to clear off the overdue amount in twelve (12) equal

monthly instalments first of which shall be paid on or before 07-11-2022 and

thereafter, if the amount so directed is repaid within the time as directed above, to

have the loan account regularised.

6. Accordingly, there will be a direction to the respondent bank to accept

repayment of the entire overdue amount of Rs.12,64,936/- along with bank charges

from the petitioners and regularise the loan account of the petitioners on the

following conditions:

(i) The overdue amount of Rs.12,64,936/- together with any accrued interest and charges shall be repaid in twelve equated monthly instalments.

(ii) The first instalment shall be paid on or before 07-11-2022 and the subsequent instalments shall be paid on or before 7 th day of every succeeding month.

(iii) Petitioners shall continue to pay the regular EMI's along with the instalments directed above.

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

(v) In order to enable the petitioners 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 AMG

APPENDIX OF WP(C) 33596/2022

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE POSSESSION NOTICE ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER DATED 12-10-2022