Kerala High Court
Ansari H.M vs Kerala State Co-Operative Bank on 15 February, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 15TH DAY OF FEBRUARY 2024 / 26TH MAGHA, 1945
WP(C) NO. 5504 OF 2024
PETITIONER:
ANSARI H.M
AGED 44 YEARS
S/O.HANEEF MOHAMMED ISSAL,
MANGARAM,
KONNI P.O, PATHANAMTHITTA,
PIN - 689691
BY ADV S.SUJIN
RESPONDENTS:
1 KERALA STATE CO-OPERATIVE BANK
REGIONAL OFFICE P.B NO.104,
OPP MUNCIPAL TOWN HALL ALAPPUZHA,
PIN - 688011
2 KERALA STATE CO-OPERATIVE BANK
REPRESENTED BY THE BRANCH MANAGER, KONNI BRANCH,
KONNI, PATHANAMTHITTA, PIN - 689691
3 AUTHORIZED OFFICER
KERALA STATE CO-OPERATIVE BANK REGIONAL OFFICE P.B
NO.104, OPP MUNCIPAL TOWN HALL ALAPPUZHA,
PIN - 688011
4 STATE OF KERALA
REPRESENTED BY SECRETARY TO GOVERNMENT,
DEPARTMENT OF COOPERATION, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
SRI.N.RAGHURAJ-R1 TO R3
SRI.SREEJITH V.S-GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
15.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO.5504 OF 2024
2
JUDGMENT
Dated this the 15th day of February, 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 ₹20 Lakhs to the petitioner as
Consumption 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.5504 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.P1 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
WP(C) NO.5504 OF 2024
the loan was given to the petitioner in the year 2017. The
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. The petitioner's loan account was declared
as NPA in the year 2018. 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.P1 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
WP(C) NO.5504 OF 2024
to the petitioner to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from
the petitioner as on 13.02.2024 is ₹31,82,729/- and the
overdue amount as on 13.02.2024 is ₹23,44,776/-.
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.
The writ petition is therefore disposed of directing that
the petitioner shall remit an amount of ₹10 lakhs within a
WP(C) NO.5504 OF 2024
period of three weeks from today, and shall remit the balance
overdue amount in ten equal and consecutive monthly
instalments immediately thereafter. The petitioner shall also
pay current EMIs along with the aforesaid payments. If the
petitioner makes payments as directed above, coercive
proceedings, if any, against the petitioner shall stand deferred.
If the petitioner commits any default, the respondents will be
at liberty to proceed against the petitioner, in accordance with
law.
Sd/-
N.NAGARESH
JUDGE
hmh
WP(C) NO.5504 OF 2024
APPENDIX OF WP(C) 5504/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF NOTICE DATED 11/12/2023
ISSUED BY THE 3RD RESPONDENT
Exhibit P2 TRUE COPY OF THE REQUEST DATED
06/02/2024 SUBMITTED BY THE PETITIONER
