Kerala High Court
Ahamed Koya vs Union Bank Of India 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. 12457 OF 2024
PETITIONERS:
1 AHAMED KOYA
AGED 79 YEARS
S/O. PAREEDKUNJU, MUNEERA MANZIL,
VIKAS NAGAR-182, PATTATHANAM P.O,
KOLLAM, PIN - 691001
2 SULPHIKAR AHAMED
AGED 51 YEARS
S/O AHAMED KOYA, RAHATH, PANTHRANDUMURI NAGAR 33A,
THATTAMALA P.O, ERAVIPURAM,
MAYYANAD, KOLLAM, PIN - 691020
BY ADVS.
ABDUL SALIM M.
S.SUJIN
NITA.N.S.
RESPONDENTS:
1 UNION BANK OF INDIA
KOLLAM MAIN BRANCH KHISE BUILDING, BEACH ROAD,
KOLLAM, REPRESENTED BY ITS MANAGER.,
PIN - 691001
2 AUTHORIZED OFFICER (RECOVERY)
UNION BANK OF INDIA,
KOLLAM MAIN BRANCH KHISE BUILDING,
BEACH ROAD, KOLLAM, PIN - 691001
SRI.A.S.P.KURUP (STANDING COUNSEL)
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.12457 Of 2024
2
JUDGMENT
Dated this the 4th day of April, 2024
The petitioners have approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Union Bank of India 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 ₹90 lakhs towards Cash Credit
facility in the year 2002, ₹6.75 lakhs towards Housing Loan in
the year 2012 and ₹7.5 lakhs towards Vehicle Loan in the
year 2014 to the petitioners. 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 financial
crisis. The repayment of loan fell into arrears. It happened
due to reasons beyond the control of the petitioners.
WP(C) No.12457 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 Ext.P7 notice.
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. On behalf of the respondents, it is submitted that
the loans were given to the petitioners in the years 2002, 2012
WP(C) No.12457 Of 2024
and 2014.. The petitioners committed default in repaying the
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 Ext.P7 notice was 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 outstanding amount immediately
thereafter, a short breathing time can be granted to the
petitioners to clear the dues. The Standing Counsel submitted
that the total outstanding amount due to the Bank from the
WP(C) No.12457 Of 2024
petitioners as on 04.04.2024 is ₹1,03,44,640/-.
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 the
outstanding amount of ₹1,03,44,640/- in 12
consecutive and equal monthly installments
along with accruing interest and other Bank
WP(C) No.12457 Of 2024
charges, if any. First of such instalments
shall be paid on or before 04.05.2024.
(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) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
(iv) If the petitioners make an application for
statement of accounts, the respondents shall
provide the same.
Sd/-
N.NAGARESH
JUDGE
hmh
WP(C) No.12457 Of 2024
APPENDIX OF WP(C) 12457/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE LETTER NO.CCH.
504/50110 DATED 29/09/2018 ISSUED BY
THE 1ST RESPONDENT SANCTIONING THE
LOAN OF RS.90, 00,000 AS WORKING
CAPITAL.
Exhibit P2 TRUE COPY OF THE NOTICE NO.SARFAESIA:
4667 DATED 04/12/2019 ISSUED UNDER
SECTION 13(2) OF SARFAESIA ACT 2002 BY
THE 2ND RESPONDENT.
Exhibit P3 TRUE COPY OF THE NOTICE DATED
22/11/2021 ISSUED BY THE 1ST
RESPONDENT.
Exhibit P4 TRUE COPY OF THE LETTER DATED
08/04/2022 SUBMITTED BY THE 1ST
PETITIONER TO THE 1ST RESPONDENT BANK.
Exhibit P5 TRUE COPY OF THE LETTER DATED
19/10/2022 SUBMITTED BY THE 1ST
PETITIONER TO THE 1ST RESPONDENT BANK
AND DETAILS OBTAINED FROM THE BANK
SHOWING THE PAYMENTS MADE TO THE
RESPONDENT BANK.
Exhibit P6 TRUE COPY OF THE DEATH CERTIFICATE
DATED 31/12/2023 ISSUED BY THE
REGISTRAR OF BIRTHS & DEATHS, KOLLAM
MUNICIPAL CORPORATION.
Exhibit P7 TRUE COPY OF THE SALE NOTICE DATED
04/03/2024 ALONG WITH THE ENCLOSURE
ISSUED BY THE 1ST RESPONDENT BANK.
