Priyamol P vs Tata Capital Housing Finance Ltd
2023 Latest Caselaw 12828 Ker

Kerala High Court

Priyamol P vs Tata Capital Housing Finance Ltd on 8 December, 2023

Author: N.Nagaresh

Bench: N.Nagaresh

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                 PRESENT
                   THE HONOURABLE MR.JUSTICE N.NAGARESH
    FRIDAY, THE 8TH DAY OF DECEMBER 2023 / 17TH AGRAHAYANA, 1945
                         WP(C) NO. 41159 OF 2023
PETITIONER:

              PRIYAMOL P
              AGED 48 YEARS
              W/O.MANIKANDAN, PULIKKATHODI HOUSE,
              VETTATHUR P.O., MELATHUR VIA.,
              MALAPPURAM DISTRICT, PIN - 679326


              BY ADV K.RAKESH


RESPONDENT:

              TATA CAPITAL HOUSING FINANCE LTD.
              5TH FLOOR CITY MALL, KANNUR ROAD,
              KOZHIKKODE,
              REPRESENTED BY ITS REGIONAL COLLECTION MANAGER,
              PIN - 673001

              SRI.P.PAULOCHAN ANTONY



     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
08.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO.41159 OF 2023
                                  2




                         JUDGMENT

Dated this the 8th day of December, 2023

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the Tata Capital Housing Finance Limited to the

petitioner, invoking the provisions of the Securitisation and

Reconstruction of Financial Assets and Enforcement of

Security Interest Act, 2002.

2. The petitioner availed four loans from the respondent

in the year 2015, 2016 and 2022. The petitioner states that

though the petitioner made remittances promptly during the

initial repayment period of the financial advance, she could not

pay the repayment installments promptly later due to Covid-19

pandemic. The repayment of loans fell into arrears. It

happened due to reasons beyond the control of the petitioner. WP(C) NO.41159 OF 2023

3. Though the petitioner requested the respondent to

permit the petitioner to repay the overdue amounts in easy

monthly installments, the authorities were not yielding. The

authorities, instead started coercive proceedings invoking the

provisions of the Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002 and the

Security Interest (Enforcement) Rules, 2002 and issued Ext.P1

notice.

4. The petitioner states that she is still in a position to

clear the overdue amounts towards the loans, if sufficient time

is given to clear the dues in easy monthly installments. If the

respondent is permitted to continue with the coercive

proceedings and auction the secured assets provided by the

petitioner, she will be put to untold hardship and loss.

5. Standing Counsel entered appearance on behalf of

the respondent and denied all the statements made by the

petitioner. On behalf of the respondent, it is submitted that the WP(C) NO.41159 OF 2023

loan was given to the petitioner in the year 2018. The petitioner

committed default in repaying the loan.

6. The respondent repeatedly reminded the petitioner

and required her to clear the dues. The petitioner deliberately

omitted to do so. In the circumstances, the respondent had no

other go than to proceed against the petitioner invoking the

provisions of the Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002. The

impugned Ext.P1 notice was issued in these circumstances.

The petitioner has not advanced any legal reasons to thwart the

coercive proceedings initiated by the respondent.

7. The Standing Counsel, however, submitted that if the

petitioner is ready and willing to make a substantial payment

soon and remit the balance overdue amount immediately

thereafter, a short breathing time can be granted to the

petitioner to clear the dues. The Standing Counsel submitted

that the total outstanding amount due to the respondent from WP(C) NO.41159 OF 2023

the petitioner as on 08.12.2023 is ₹1,13,90,787/- and the

overdue amount as on 08.12.2023 is ₹17,27,018/-.

8. I have heard the counsel for the petitioner and the

Standing Counsel representing the respondent.

9. The specific case of the petitioner is that the

petitioner has been making the repayment and maintaining the

loan account initially. The default in repayment of the loan

occurred lately due to reasons beyond the control of the

petitioner. The petitioner has provided substantial security

which will safeguard the interest of the respondent.

10. In the circumstances, I find that the petitioner should

be granted an opportunity to clear the overdue amount and

approach the respondent for regularisation of the loan account.

The writ petition is therefore disposed of directing the

petitioner to pay an amount of ₹5 lakhs towards overdue on or

before 30.12.2023 and the balance overdue amount on or

before 15.01.2024. After effecting the above payments, the WP(C) NO.41159 OF 2023

petitioner may approach the respondent for regularisation of the

loan account. If the petitioner pays the amount as directed

above, coercive proceedings, if any, shall be deferred till the

respondent takes a decision on the regularisation application. If

the petitioner fails to pay the amounts as directed above, the

respondent will be at liberty to proceed against the petitioner in

accordance with law.

Sd/-

N.NAGARESH JUDGE hmh WP(C) NO.41159 OF 2023

APPENDIX OF WP(C) 41159/2023

PETITIONER EXHIBITS

Exhibit P1 A TRUE COPY OF THE NOTICE MEMO DATED, 25/11/2023 ISSUED TO THE PETITIONER BY THE ADVOCATE COMMISSIONER