K. Santhosh Kumar vs Kerala State Co-Operative Bank ...
2023 Latest Caselaw 11137 Ker

        IN THE HIGH COURT OF KERALA AT ERNAKULAM
                        PRESENT
          THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 27TH DAY OF OCTOBER 2023 / 5TH KARTHIKA, 1945
                WP(C) NO. 34164 OF 2023
PETITIONER:

         K. SANTHOSH KUMAR,
         AGED 52 YEARS,
         SON OF THE LATE E. KARTHIKEYAN NAIR,
         WORKSHOP CHARGEMAN,
         KERALA STATE ROAD & TRANSPORT CORPORATION,
         PARASSALA DEPOT, THIRUVANANTHAPURAM,
         KERALA- 695 502.
         RESIDING AT AARAMAM, THATHIYOOR,
         MARAYAMUTTOM P.O., NEYYATTINKARA,
         THIRUVANANTHAPURAM, KERALA - 695 124.

         BY ADVS.
              REKHA VASUDEVAN
              MAHESH C.R.
              ELIZABETH V.JOSEPH
              ROJIT ZACHARIAH


RESPONDENTS:

    1    KERALA STATE CO-OPERATIVE BANK LTD.
         (KERALA BANK),
         REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER,
         HEAD OFFICE, COBANK TOWERS, P.B.NO.6515,
         VIKAS BHAVAN, PALAYAM P.O., THIRUVANANTHAPURAM,
         KERALA - 695 033.

    2    THE AUTHORISED OFFICER,
         KERALA STATE CO-OPERATIVE BANK LTD.,
         REGIONAL OFFICE, EAST FORT, FORT P.O.,
         THIRUVANANTHAPURAM, KERALA - 695 033.

    3    THE BRANCH MANAGER,
         KERALA STATE CO-OPERATIVE BANK LTD.,
         ARUVIPPURAM BRANCH, MARAYAMUTTOM, ARUVIPPURAM,
         THIRUVANANTHAPURAM, KERALA -695 126.
 W.P.(C) No.34164 of 2023
                             :2:


           BY ADV
                THOMAS ABRAHAM

     THIS WRIT PETITION (CIVIL) HAVING COME UP   FOR
ADMISSION ON 27.10.2023, THE COURT ON THE SAME   DAY
DELIVERED THE FOLLOWING:
 W.P.(C) No.34164 of 2023
                                 :3:



                           JUDGMENT

Dated this the 27th day of October, 2023

The petitioner has approached this Court

aggrieved by the coercive proceedings for recovery of

financial advance made by the 1st respondent-Bank to the

petitioner, invoking the Provisions of the Securitisation and

Reconstruction of Financial Assets and Enforcement of

Securities Interest Act, 2002.

2. The Bank paid ₹6,00,000/- to the petitioner as

Mortgage / Overdraft Loan in the year 2019. 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.

The repayment of loan/advance 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. W.P.(C) No.34164 of 2023

The authorities, instead, started coercive proceedings,

invoking the provisions of the Securitisation and

Reconstruction of Financial Assets and Enforcement of

Securities Interest Act, 2002 and the Security Interest

(Enforcement) Rules, 2002 and issued Ext.P3 notice

invoking Section 13(4) of the SARFAESI Act, 2002 and

Rule 9 of the Security Interest (Enforcement) Rules, 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 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.

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 2019. The

petitioner committed default in maintaining the advance /

credit facility W.P.(C) No.34164 of 2023

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 Securities Interest Act,

2002. The impugned Ext.P3 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 30.09.2023 is ₹9,70,403/-.

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

Standing Counsel representing the Bank. W.P.(C) No.34164 of 2023

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 /

maintenance of the account 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 his liability.

11. The writ petition is therefore disposed of with the

following directions:

(i) The petitioner shall remit an amount of

₹3.5 lakhs within a period of one week from

today.

          (ii)    The petitioner shall remit the balance

          outstanding        amount     in    subsequent

consecutive 15 equal monthly instalments

thereafter, along with accruing interest and W.P.(C) No.34164 of 2023

other Bank charges, if any.

(iii) 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.

Sd/-

N. NAGARESH JUDGE AMR W.P.(C) No.34164 of 2023

APPENDIX OF WP(C) 34164/2023

PETITIONER'S EXHIBITS

Exhibit P1 TRUE COPY OF THE IDENTITY CARD BEARING PF/ID NO. 53499 ISSUED TO THE PETITIONER BY THE EXECUTIVE DIRECTOR (ADMINISTRATION), KSRTC.

Exhibit P2 TRUE COPY OF THE RELEVANT PAGES OF THE PASSBOOK BEARING A/C NO.

020386012930017 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT BANK.

Exhibit P3 TRUE COPY OF THE POSSESSION NOTICE DATED 08.09.2023 ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT.