Dr. Jyothi Babu A vs The Authorizecl Officer
2024 Latest Caselaw 9512 Ker

Citation : 2024 Latest Caselaw 9512 Ker
Judgement Date : 4 April, 2024

Kerala High Court

Dr. Jyothi Babu A vs The Authorizecl Officer 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. 43970 OF 2023
PETITIONERS:

    1    DR. JYOTHI BABU A.,
         AGED 64 YEARS,
         S/O. AYYAKKANNU,
         VAISHNEVAM, KURUMPALA,
         PATHANAMTHITTA, PIN - 689501
    2    SULA JYOTHI,
         AGED 53 YEARS,
         W/O. DR. JYOTHI BABU A. VAISHNAVAM,
         KURUMPELA,
         PATHANAMTHITTA, PIN - 689501

         BY ADVS.
         S.JAMAL
         VINOD VALLIKAPPAN


RESPONDENT:

         THE AUTHORIZED OFFICER,
         HDFC BANK LTD, HDFC HOUSE,
         VAZHUTHACAUD,
         THIRUVANANTHAPURAM, PIN - 695010

         BY ADVS.
         AMBILY S
         RUPA R. NAIR(K/001021/2023)
         RUBAN JOE TONIYO(K/002926/2022)
         K.K.CHANDRAN PILLAI (SR.)(C-41)

     THIS WRIT PETITION (CIVIL) HAVING COME UP       FOR
ADMISSION ON 04.04.2024, THE COURT ON THE SAME       DAY
DELIVERED THE FOLLOWING:
 W.P.(C) No.43970/2023
                               :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 HDFC 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 ₹75 lakhs to the petitioners as

Equity Loan and an amount of ₹11 lakhs as Insurance in

the year 2018. 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 instalments promptly later. The

repayment of loan fell into arrears later. It happened due to

reasons beyond the control of the petitioners.

3. Though the petitioners requested the Bank to

permit the petitioners to repay the overdue amounts in easy

monthly instalments, 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 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

instalments. If the respondent is 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 respondent, it is submitted that

the loans were given to the petitioners in the year 2018.

The petitioners committed default in repaying the loan.

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.P1 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 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 15.02.2024 is ₹84,38,355/-

and the overdue amount as on 04.04.2024 is ₹9,75,607/-.

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 account 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 an amount

of ₹2 lakhs on or before 30.04.2024.

(ii) The petitioners shall remit the

balance overdue amount in subsequent

consecutive 10 equal monthly instalments

thereafter, along with accruing interest and

other Bank charges, if any.

(iii) If the petitioners commit default in

making payments as directed above, the

respondent will be at liberty to continue

with coercive proceedings against the

petitioners in accordance with law.

(iv) The petitioners shall also pay current

EMIs along with the aforesaid payments.

(v) If the petitioners pay the amount as

directed above, any coercive proceedings

against the petitioners will stand deferred.

Sd/-

N. NAGARESH JUDGE SR

APPENDIX OF WP(C) 43970/2023

PETITIONER'S EXHIBITS:

Exhibit P1 THE TRUE COPY OF THE NOTICE DATED 25- 09-2023 Exhibit P2 TRUE COPY OF THE REGISTERED REPLY NOTICE DATED 23-11-2023 SENT TO THE RESPONDENT Exhibit P3 TRUE COPY OF THE MEDICAL CERTIFICATE EVIDENCING THE TREATMENT AND DIAGNOSIS OF THE FIRST PETITIONER ISSUED BY THE ST GREGORIOS MEDICAL MISSION HOSPITAL, PAMUMALA, PATHANAMTHITTA ISSUED BY THE CONSULTANT MEDICAL 0NCOLOGIST DATED 24-10-2023.