Kerala High Court
P. Muraleedharan vs The Kerala State Co-Operative Bank 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. 8800 OF 2024
PETITIONER:
P. MURALEEDHARAN
AGED 52 YEARS
S/O. DIVAKARA MENON, ADVOCATE,
PARANGODATH HOUSE, ARIMPUR P.O.,
KAIPPILLY DESOM, VELUTHOOR VILLAGE,
THRISSUR TALUK, THRISSUR DISTRICT.,
PIN - 680620
BY ADVS.
K.A.MOHAMED HARIS
ANEESA NAZAR
K.M.SALIM
RESPONDENTS:
1 THE KERALA STATE CO-OPERATIVE BANK,
SAHAKARANA SADABDTHI MANDIRAM, KOVILAKATHUMPADAM,
THIRUVAMBADY P.O., THRISSUR DISTRICT
REPRESENTED BY ITS AUTHORISED OFFICER, PIN - 68002
2 THE AUTHORISED OFFICER
KERALA STATE CO-OPERATIVE BANK,
SAHAKARANA SADABDTHI MANDIRAM, KOVILAKATHUMPADAM,
THIRUVAMBADY P.O., THRISSUR DISTRICT.,
PIN - 680022
SRI.P.C.SASINDHARAN (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.8800 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 ₹26.5 lakhs to the petitioner as
Simple Loan in the year 2017. 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.8800 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 Ext.P8 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
petitioner. On behalf of the respondents, it is submitted that
the loan was given to the petitioner in the year 2017. The
WP(C) No.8800 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 Ext.P8 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 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 ₹40,08,367/- and the
WP(C) No.8800 Of 2024
overdue amount as on 05.04.2024 is ₹22,03,822/-.
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 ₹22,03,822/- in 12 consecutive
and equal monthly installments along with
accruing interest and other Bank charges, if
WP(C) No.8800 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.8800 Of 2024
APPENDIX OF WP(C) 8800/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE RELEVANT PAGES OF THE
LOAN ACCOUNT PASS BOOK AND THE
REPAYMENT STATEMENT OF THE PETITIONER
Exhibit P2 TRUE COPY OF THE CIRCULAR DATED 27TH
MARCH 2020, TAKEN FROM WEBSITE OF RBI
Exhibit P3 TRUE COPY OF THE CIRCULAR DATED 23RD
MAY 2020, TAKEN FROM WEBSITE OF RBI
Exhibit P4 TRUE COPY OF THE RESOLUTION FRAME WORK
1.0 -DATED 6THAUGUST 2020, TAKEN FROM
WEBSITE OF RBI
Exhibit P5 TRUE COPY OF THE RESOLUTION FRAME WORK
2.0 -DATED 5TH MAY 2021, TAKEN FROM
WEBSITE OF RBI.
Exhibit P6 TRUE COPY OF THE DEMAND NOTICE ISSUED
BY THE BANK DATED 27.11.2018 (RECEIVED
DURING DECEMBER 2018)
Exhibit P7 TRUE COPY OF THE 13(4) NOTICE ISSUED
BY THE 1ST RESPONDENT BANK DATED
04.03.2020 (SERVED DURING APRIL 2020)
Exhibit P8 . TRUE COPY OF THE NOTICE ISSUED TO
THE PETITIONER BY THE ADVOCATE
COMMISSIONER DATED 10.12.2023 IN CRL.
M.P. NO.5905 OF 2023
