Kerala High Court
George K. M vs The Manager, Kerala State ... on 11 April, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 11TH DAY OF APRIL 2024 / 22ND CHAITHRA, 1946
WP(C) NO. 14478 OF 2024
PETITIONERS:
1 GEORGE K. M.,
AGED 65 YEARS
S/O MATHAI, KOLLAMPARAMBIL (H),
PARATHANAM P.O., KOTTAYAM, PIN - 686512
2 GIJIN GEORGE,
AGED 39 YEARS
S/O GEORGE K. M, KOLLAMPARAMBIL (H),
PARATHANAM P.O., KOTTAYAM,
PIN - 686512
BY ADVS.
AISWARYA E J VETTIKOMPIL
CHRISTINE MATHEW
ABESH ALOSIOUS
SEN C PUTHUPPARAMPIL
RESPONDENTS:
1 THE MANAGER, KERALA STATE CO.,-OPERATIVE BANK,
KOTTAYAM REGIONAL OFFICE
KERALA STATE CO-OPERATIVE BANK,
KOTTAYAM REGIONAL OFFICE,P.B. NO. 140,
CENTRAL JUNCTION, KOTTAYAM, PIN - 686001
2 MANAGER, KERALA STATE CO-OPERATIVE BANK,
MUNDAKKAYAM BRANCH,
KOTTAYAM, PIN - 686513
3 AUTHORIZED OFFICER, KERALA STATE CO-OPERATIVE BANK,
KOTTAYAM REGIONAL OFFICE, P.B. NO. 140,
CENTRAL JUNCTION, KOTTAYAM,
PIN - 686001
SRI.ATHUL SHAJI
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
11.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.14478 Of 2024
2
JUDGMENT
Dated this the 11th day of April, 2024
The petitioners have approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Kerala State Co-operative Bank to the
petitioners, invoking the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002.
2. The Bank paid ₹20 lakhs to the petitioners as
Ordinary Loans. The petitioners state that though the
petitioners made remittances promptly during the initial
repayment period of the financial advance, they could not pay
the repayment installments promptly later due to Covid-19
pandemic. The repayment of loan fell into arrears. It
happened due to reasons beyond the control of the
petitioners.
WP(C) No.14478 Of 2024
3. Though the petitioners requested the Bank to
permit the petitioners 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 Exts.P1 to P3 notices.
4. The petitioners state that they are 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 respondents are permitted to continue with the coercive
proceedings and auction the secured assets provided by the
petitioners, they 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
petitioners. The petitioners committed default in repaying the
WP(C) No.14478 Of 2024
loans.
6. The Bank repeatedly reminded the petitioners and
required them to clear the dues. The petitioners deliberately
omitted to do so. In the circumstances, the Bank had no other
go than to proceed against the petitioners invoking the
provisions of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002. The impugned Exts.P1 to P3 notices were issued in
these circumstances. The petitioners have not advanced any
legal reasons to thwart the coercive proceedings initiated by
the Bank.
7. The Standing Counsel, however, submitted that if
the petitioners are 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 petitioners to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from
the petitioners as on 08.04.2024 is ₹46,66,196/- and the
WP(C) No.14478 Of 2024
overdue amount as on 08.04.2024 is ₹43,99,460/-.
8. I have heard the counsel for the petitioners and the
Standing Counsel representing the Bank.
9. The specific case of the petitioners is that the
petitioners have 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
petitioners. The petitioners have 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 petitioners to clear off the liability.
11. The writ petition is therefore disposed of with the
following directions:
(i) The petitioners shall remit ₹10 lakhs
within one month from today and the balance
overdue amount in ten consecutive and
equal monthly installments immediately
WP(C) No.14478 Of 2024
thereafter along with accruing interest and
other Bank charges, if any.
(ii) If the petitioners commit default in
making payments as directed above, the
respondents will be at liberty to continue with
the coercive proceedings against the
petitioners in accordance with law.
(iii) The petitioners shall also pay current
EMIs along with the aforesaid payments.
(iv) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
hmh
WP(C) No.14478 Of 2024
APPENDIX OF WP(C) 14478/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE NOTICE DATED
24.01.2024 OF THE KERALA STATE CO-
OPERATIVE BANK, KOTTAYAM REGIONAL
OFFICE
Exhibit P2 A TRUE COPY OF THE NOTICE DATED
24.01.2024 OF THE KERALA STATE CO-
OPERATIVE BANK, KOTTAYAM REGIONAL
OFFICE
Exhibit P3 A TRUE COPY OF THE NOTICE OF ADVOCATE
COMMISSIONER DATED 01-04-2024 TO FIRST
PETITIONER AS PER THE ORDER OF THE
HON'BLE CHIEF JUDICIAL MAGISTRATE
COURT, KOTTAYAM IN MC. NO:234/2024
Exhibit P4 TRUE COPY OF DISCHARGE SHEET OF THE
FIRST PETITIONER ISSUED BY MARY QUEENS
MISSION HOSPITAL, KANJIRAPALLY DATED
31-01-2020
Exhibit P5 TRUE COPY OF THE OPHTHALMIC REPORT OF
THE THREE YEAR OLD SON OF SECOND
PETITIONER ISSUED BY LITTLE FLOWER
HOSPITAL AND RESEARCH CENTRE, ANGAMALY
DATED 25-03-2021
