C Vijayakumar vs Kerala State Co-Operative Bank ...
2023 Latest Caselaw 11686 Ker

          IN THE HIGH COURT OF KERALA AT ERNAKULAM
                             PRESENT
               THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 16TH DAY OF NOVEMBER 2023 / 25TH KARTHIKA, 1945
                     WP(C) NO. 37250 OF 2023
PETITIONER:

         C VIJAYAKUMAR
         AGED 62 YEARS, S/O CHELLAPPAN VELITHARA
         PUTHEN VEEDU KOTTAMAM , ARAYOOR P.O
         NEYYATTINKARA , THIRUVANANTHAPURAM - 695122.

          BY ADVS.
          SREEHARI INDUKALADHARAN
          SETHU NANDAKUMAR
          JAYASANKAR K.
          D.SMITHA


RESPONDENTS:

    1    KERALA STATE CO-OPERATIVE BANK LIMITED
         EAST FORT, THIRUVANANTHAPURAM PIN - 695023
         REPRESENTED BY ITS AUTHORIZED OFFICER.

    2    THE BRANCH MANAGER
         BALARAMAPURAM EVENING BRANCH KERALA STATE
         CO-OPERATIVE BANK LIMITED (ERSTWHILE
         THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK )
         BALARAMAPURAM BRANCH ,
         THIRUVANANTHAPURAM, PIN - 691524.

          BY ADV THOMAS ABRAHAM


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 16.11.2023, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 W.P.(C) No.37250 of 2023

                                :2:




                         JUDGMENT

Dated this the 16th day of November, 2023

The petitioner has approached this Court aggrieved by the

coercive proceedings for recovery of financial advance made by

the Kerala State Co-operative 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 ₹9,00,000/- to the petitioner as

Mortgage Loan in the year 2017. 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 financial constraints. W.P.(C) No.37250 of 2023

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 respondents

are 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.

W.P.(C) No.37250 of 2023

5. Standing Counsel entered appearance on behalf of the

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

behalf of the respondents, it is submitted that the loan was given

to the petitioner in the year 2017. 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 W.P.(C) No.37250 of 2023

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

outstanding amount due to the Bank from the petitioner is

₹8,05,455/- and the overdue amount as on 31.10.2023 is

₹7,09,169/-.

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 W.P.(C) No.37250 of 2023

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 overdue

amount of ₹7,09,169/- in 10 equal and

consecutive monthly instalments along with

accruing interest and other Bank charges, if any.

The first instalment shall be paid on or before

16.12.2023.

(ii) If the petitioner commits default in making

payments as directed above, the respondents

will be at liberty to continue with coercive

proceedings against the petitioner in accordance

with law.

(iii) The petitioner shall also pay current EMIs

along with the aforesaid payments.

W.P.(C) No.37250 of 2023

(iv) If the petitioner makes payments as

directed above, coercive proceedings, if any,

against the petitioner shall stand deferred.

Sd/-

N. NAGARESH JUDGE ams W.P.(C) No.37250 of 2023

APPENDIX OF WP(C) 37250/2023

PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE BANK PASSBOOK OF LOAN ACCOUNT OF THE PETITIONER Exhibit P2 A TRUE COPY OF THE SECURITY ENFORCEMENT NOTICE UNDER SARFAESI ISSUED BY THE RESPONDENT BANK DATED 20.09.2023