Abhilash Narayanan vs Kerala State Co-Operative Bank
2023 Latest Caselaw 11723 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. 37959 OF 2023
PETITIONER

              ABHILASH NARAYANAN
              AGED 42 YEARS
              S/O NARAYANAN, KALAPURRAKAL HOUSE, THEKKUMURY PO,
              VARANDARAPPILYRAYAN, PIN - 680303

              BY ADV VINAY MATHEW JOSEPH


RESPONDENT:

              KERALA STATE CO-OPERATIVE BANK
              REPRESENTED BY ANY AUTHORISED OFFICER,
              VARANADARAPPILLY BRANCH, 167/K,
              VAZHAKKAL BUILDING, VARADARAPPILLY,
              THRISSUR, PIN - 680303




              ADV.P. C. SASIDHARAN-STANDING COUNSEL


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
16.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO.37959 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 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 ₹ 16.8 lakhs 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 installments promptly later due to Covid-19

pandemic. The repayment of loan fell into arrears later. It

happened due to reasons beyond the control of the petitioner. WP(C) NO.37959 OF 2023

3. Though the petitioner requested the Bank to permit

the petitioner to repay the overdue amounts in easy monthly

installments, 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.P1

notice invoking Section 13(2) of the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security

Interest Act, 2002.

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 installments. 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. WP(C) NO.37959 OF 2023

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.P1 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 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 WP(C) NO.37959 OF 2023

as on 16.11.2023 is ₹ 18,46,882/- and the overdue amount as

on 16.11.2023 is ₹6,81,601/-.

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 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 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 overdue

amount of ₹6,81,601/- in 12 consecutive and

equal monthly installments along with accruing WP(C) NO.37959 OF 2023

interest and other Bank charges, if any. First of

such installments shall be paid on or before

18.12.2023.

(ii) If the petitioner commits default in making

payments as directed above, the respondent

will be at liberty to continue with the coercive

proceedings against the petitioner in

accordance with law.

(iii) The petitioner shall also pay current EMIs

along with the aforesaid payments.

(iv) If the petitioner makes payments as

directed above, coercive proceedings, if any,

against the petitioner shall stand deferred.

Sd/-

N.NAGARESH JUDGE hmh WP(C) NO.37959 OF 2023

APPENDIX OF WP(C) 37959/2023

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE NOTICE DATED 11.09.2023 RECEIVED BY THE PETITIONER Exhibit P2 TRUE COPY OF THE STATEMENT OF LOAN ACCOUNT NO. 151360356004257