Kerala High Court
Ummar Farookh vs Kerala State Co-Operative Bank Limited on 5 April, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 5TH DAY OF APRIL 2024 / 16TH CHAITHRA, 1946
WP(C) NO. 14087 OF 2024
PETITIONER:
UMMAR FAROOKH
AGED 46 YEARS
S/O. SOOPY, PURAYIL HOUSE,
PARANNUR. P.O., NARIKKUNI
KOZHIKODE DISTRICT, PIN - 673585
BY ADVS.
U.K.DEVIDAS
S.K.SREELAKSHMY
RESPONDENT
KERALA STATE CO-OPERATIVE BANK LIMITED
(FORMER KOZHIKODE DISTRICT CO-OPERATIVE BANK)
P.B. NO.503 , CHALAPPURAM P.O.,
KOZHIKODE DISTRICT REP. BY ITS AUTHORISED OFFICER,
VINODAN CHERIYALATH, S/O. CHATHU NAIR.,
PIN - 673002
SRI.P.C.SASIDHARAN (STANDING COUNSEL)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
05.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.14087 Of 2024
2
JUDGMENT
Dated this the 5th 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 ₹25 lakhs to the petitioner as
Ordinary Loan in the year 2018. 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 Covid-19
pandemic. The repayment of loan fell into arrears. It
happened due to reasons beyond the control of the petitioner.
WP(C) No.14087 Of 2024
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 Exts.P2 and P3 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 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 2018. The
WP(C) No.14087 Of 2024
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 Exts.P1 and P3 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 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 05.04.2024 is ₹36,51,147/- and the
WP(C) No.14087 Of 2024
overdue amount as on 31.03.2024 is ₹19,24,899/-.
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 ₹19,24,899/- in ten consecutive
and equal monthly installments along with
accruing interest and other Bank charges, if
WP(C) No.14087 Of 2024
any. First of such installments shall be paid
on or before 06.05.2024.
(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.14087 Of 2024
APPENDIX OF WP(C) 14087/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE PASS BOOK OF THE
PETITIONER'S WIFE ISSUED BY THE BANK
Exhibit P2 TRUE COPY OF THE ORDER DATED
12.02.2024 IN C.M.P. NO. 370 OF 2024
BEFORE THE HON'BLE CHIEF JUDICIAL
MAGISTRATE COURT, KOZHIKODE
Exhibit P3 TRUE COPY OF THE NOTICE DATED
21.03.2024 IN C.M.P. NO. 370 OF 2024
BEFORE THE HON'BLE CHIEF JUDICIAL
MAGISTRATE COURT, KOZHIKODE ISSUED BY
ADVOCATE COMMISSIONER
