Akhil. J vs Axis Bank Limited
2023 Latest Caselaw 12930 Ker

Citation : 2023 Latest Caselaw 12930 Ker
Judgement Date : 8 December, 2023

Kerala High Court

Akhil. J vs Axis Bank Limited 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. 41215 OF 2023
PETITIONER:

          AKHIL. J
          AGED 37 YEARS, S/O JAYALAL
          RESIDING AT TC 43/465, LATHIKALAYAM,
          KAMALESWARAM, MANACAUD P.O,
          THIRUVANANTHAPURAM, PIN - 695009.

          BY ADVS.
          MITHUN P.
          AFSAL KHAN H.
          MERIN THOMAS


RESPONDENT:

          AXIS BANK LIMITED
          REPRESENTED BY REGIONAL MANAGER,
          LOAN CENTRE, 3RD FLOOR, CHICAGO PLAZA,
          RAJAJI RD, ERNAKULAM, KERALA, PIN - 682035.

          BY ADV.SRI.MADHU RADHAKRISHNAN

     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 08.12.2023, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 W.P.(C) No.41215 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 Axis Bank Limited to the petitioner, invoking the provisions of

the Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002.

2. The Bank paid ₹15 lakhs to the petitioner as Home

Loan in the year 2018. The petitioner states that though the

petitioner made remittances promptly during the initial repayment

period of the financial advance, he could not pay the repayment

instalments promptly later due to unforeseen medical emergency

and financial constraints. The repayment of loan fell into arrears.

It happened due to reasons beyond the control of the petitioner.

3. Though the petitioner requested the Bank to permit the

petitioner to repay the overdue amounts in easy monthly

instalments, the Bank 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.P2

notice.

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

the overdue amounts towards the loan, if sufficient time is given

to clear the dues in easy monthly instalments. If the respondent is

permitted to continue with the coercive proceedings and auction

the secured assets provided by the petitioner, he will be put to

untold hardship and loss.

5. Standing Counsel entered appearance on behalf of the

Bank and denied all the statements made by the petitioner. On

behalf of the respondent, it is submitted that the loan was given to

the petitioner in the year2018. The petitioner committed default in

repaying the loan.

6. The Bank repeatedly reminded the petitioner and

required him to clear the dues. The petitioner deliberately omitted

to do so. In the circumstances, the Bank 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.P2

notice was issued in these circumstances. The petitioner has not

advanced any legal reasons to thwart the coercive proceedings

initiated by the Bank.

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

petitioner is ready and willing to make a substantial payment

soon and remit the balance outstanding amount immediately

thereafter, a short breathing time can be granted to the petitioner

to clear the dues. The Standing Counsel submitted that the

outstanding amount due to the Bank from the petitioner as on

08.12.2023 is ₹14,18,225/-.

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

Standing Counsel representing the Bank.

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 occurred lately due to

reasons beyond the control of the petitioner. The petitioner has

provided substantial security which will safeguard the interest of

the Bank.

10. In the facts and circumstances of the case, I am

inclined to dispose of the writ petition giving a short and

reasonable time to the petitioner to clear off the liability.

11. The writ petition is therefore disposed of with the

following directions:

(i) The petitioner shall remit the outstanding

amount of ₹14,18,225/- in 15 equal and

consecutive monthly instalments along with

accruing interest and other Bank charges, if any.

The first instalment shall be paid on or before

08.01.2024.

(ii) If the petitioner commits default in making

payments as directed above, the respondent will

be at liberty to continue with coercive

proceedings against the petitioner in accordance

with law.

(iii) If the petitioner makes payments as

directed above, coercive proceedings, if any,

against the petitioner shall stand deferred.

Sd/-

N. NAGARESH JUDGE ams

APPENDIX OF WP(C) 41215/2023

PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ADVOCATE NOTICE ISSUED UNDER THE INSTRUCTION OF THE RESPONDENT DATED 24.08.2023 Exhibit P2 TRUE COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSION DATED 05.12.2023