Mustafa vs The Kerala State Co-Op Bank Ltd
2024 Latest Caselaw 10539 Ker

Citation : 2024 Latest Caselaw 10539 Ker
Judgement Date : 11 April, 2024

Kerala High Court

Mustafa vs The Kerala State Co-Op Bank Ltd 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. 14248 OF 2024
PETITIONER

             MUSTAFA,
             AGED 53 YEARS
             S/O KUNJAMU , PALLITHAZHA HOUSE,
             THIKKODI P.O , KOZHIKODE, PIN - 673529

             BY ADVS.
             M.R.REENA
             P.S.SUJETH


RESPONDENT

             THE KERALA STATE CO-OP BANK LTD.,
             PAYYOLI BR , KOZHIKODE DT ,
             REP BY ITS AUTHORIZED OFFICER ,
             REGIONAL OFFICE KALLAYI ROAD ,
             KOZHIKODE, PIN - 673002

             SRI.P.C.SASIDHARAN


     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.14248 Of 2024
                                2


                         JUDGMENT

Dated this the 11th day of April, 2024

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 ₹16,50,000/- to the petitioner as

Consumption Loan in the year 2020. 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. 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 WP(C) No.14248 Of 2024

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.

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. On behalf of the respondent, it is submitted that the

loan was given to the petitioner in the year 2020. The

petitioner committed default in repaying the loan. WP(C) No.14248 Of 2024

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 as on 08.04.2024 is ₹18,33,980/- and the

overdue amount as on 08.04.2024 is ₹3,54,429/-. WP(C) No.14248 Of 2024

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 ₹3,54,429/- in 12 consecutive and

equal monthly installments along with

accruing interest and other Bank charges, if

any. First of such installments shall be paid WP(C) No.14248 Of 2024

on or before 13.05.2024.

(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.14248 Of 2024

APPENDIX OF WP(C) 14248/2024

PETITIONER EXHIBITS

Exhibit P 1 A TRUE COPY OF THE POSSESSION NOTICE DATED 26-02-2024 ISSUED BY THE RESPONDENT Exhibit P2 A TRUE COPY OF THE REPRESENTATION DATED 20-03-2024 SENT BY THE PETITIONER