Kerala High Court
Asfer P vs Indian Bank 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. 13633 OF 2024
PETITIONER:
ASFER P
AGED 55 YEARS, S/O. MOHAMMED KOYA,
AFEEFA MANSIL, KALOOR ROAD, MANKAVU,
KOZHIKODE DISTRICT, PIN - 673007.
BY ADV S.K.SAJU
RESPONDENT:
INDIAN BANK
ZONAL OFFICE, WEST NADAKKAVU P.O,
KOZHIKODE PIN - 673011
REPRESENTED BY ITS AUTHORIZED OFFICER.
BY ADVS.
BINOY VASUDEVAN
K.V.RAJESWARI
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.13633 of 2024
:2:
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 Indian Bank 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 ₹10 lakhs as Overdraft Facility,
₹2 lakhs as SME Loan and ₹1,48,000/- as Funded Interest
Term Loan to the petitioner. The petitioner states that though
the petitioner made remittances promptly during the initial
repayment period of the financial advances, he could not
pay the repayment instalments promptly later due to
financial stringency. The repayment of loans 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 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 Exts.P1 and P2
notices.
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 instalments.
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. The petitioner committed default in repaying the
loans.
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 Exts.P1 and P2 notices were 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 outstanding 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 in three loan
accounts due to the Bank from the petitioner as on
03.04.2024 is ₹14,13,000/-, ₹1,67,000/- and ₹27,000/-
respectively.
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 repayments 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 an amount
of ₹4 lakhs on or before 30.04.2024.
(ii) The petitioner shall remit the balance
outstanding amount in subsequent
consecutive 10 equal monthly instalments
thereafter, along with accruing interest and
other Bank charges, if any.
(iii) If the petitioner commits default in
making payments as directed above, the
respondent will be at liberty to continue with
coercive proceedings against the petitioner
in accordance with law.
(iv) If the petitioner makes payments as
directed above, coercive proceedings, if
any, against the petitioner shall stand
deferred.
Sd/-
N. NAGARESH
JUDGE
ams
APPENDIX OF WP(C) 13633/2024
PETITIONER'S EXHIBITS
Exhibit P1 A TRUE COPY OF THE NOTICE DATED
19.07.2022
Exhibit P2 A TRUE COPY OF THE NOTICE DATED
06.03.2024 ISSUED BY THE ADVOCATE
COMMISSIONER TO THE PETITIONER
Exhibit P3 A TRUE COPY OF THE GOVERNMENT ORDER
DATED 05.10.2019
