Kerala High Court
Noorudheen vs Urban Co-Op Bank Ltd. No.1758 ... on 4 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 4TH DAY OF APRIL 2024 / 15TH CHAITHRA, 1946
WP(C) NO. 13593 OF 2024
PETITIONER
NOORUDHEEN
AGED 62 YEARS
S/O MOIDU HAJI, CHEMMANKUZHI HOUSE,
VAZHENKADA P.O. PARAL, MALAPPURAM,
PIN - 679357
BY ADVS.
THAREEQ ANVER K.
K.SALMA JENNATH
ARUN CHAND
RASSAL JANARDHANAN A.
RESPONDENTS:
1 URBAN CO-OP BANK LTD. NO.1758 PERINTHALMANNA
REPRESENTED BY ITS MANAGER
URBAN TOWER, PATTAMBI RD.,
SHANTI NAGAR,
PERINTHALMANNA, MALAPPURAM,
PIN - 679322
2 AUTHORISED OFFICER, THE URBAN CO-OP BANK LTD.NO.1758
PERINTHALMANNA
URBAN TOWER, PATTAMBI RD.,
SHANTI NAGAR, PERINTHALMANNA,
MALAPPURAM, PIN - 679322
3 STATE OF KERALA
REP. BY ITS SECRETARY TO THE GOVERNMENT,
CO-OPERATIVE DEPARTMENT, THIRUVANANTHAPURAM,
PIN - 695001
WP(C) No.13593 Of 2024
2
BY ADVS.
SMT.JAYASREE K.P.(STANDING COUNSEL)
SRI.S.GOPINATHAN -SR.GOVERNMENT PLEADER
JOHN JOSEPH(K/000875/2019)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 04.04.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) No.13593 Of 2024
3
JUDGMENT
Dated this the 4th day of April, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Urban 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 ₹11,80,605/- to the petitioner's wife
as Mortgage Loan in the year 2019. The petitioner's wife
passed away on 05.03.2020. 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 due to financial
stringency. The repayment of loan fell into arrears. It
WP(C) No.13593 Of 2024
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
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.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 installments. 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
WP(C) No.13593 Of 2024
petitioner. On behalf of the respondents, it is submitted that
the loan was given to the petitioner's wife in the year 2019.
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 soon and remit the outstanding amount immediately
thereafter, a short breathing time can be granted to the
WP(C) No.13593 Of 2024
petitioner to clear the dues. The Standing Counsel submitted
that the outstanding amount due to the Bank from the
petitioner is ₹19,28,654/-.
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:
WP(C) No.13593 Of 2024
(i) The petitioner shall remit the
outstanding amount of ₹19,28,654/- in ten
consecutive and equal monthly installments
along with accruing interest and other Bank
charges, if any. First of such installments
shall be paid on or before 15.05.2024.
(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) 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.13593 Of 2024
APPENDIX OF WP(C) 13593/2024
PETITIONER EXHIBITS
Exhibit P1 THE TRUE COPY OF THE DEATH CERTIFICATE
DATED 13/08/2020 ISSUED BY ALIPPARAMBA
GRAMA PANCHAYAT
Exhibit P2 THE TRUE COPY OF THE NOTICE DATED
19/03/2024 ISSUED BY THE 2ND
RESPONDENT TO THE PETITIONER AND HIS
CHILDREN
