Kerala High Court
Deepa.G. Nair vs The Authorised Officer on 23 February, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 23RD DAY OF FEBRUARY 2024 / 4TH PHALGUNA, 1945
WP(C) NO. 7187 OF 2024
PETITIONERS:
1 DEEPA.G. NAIR
AGED 50 YEARS
W/O. SURESH BABU, POWATHIL HOUSE,
MALLAPPALLY EAST.P.O.,
PATHANAMTHITTA, PIN - 689584
2 SURESH BABU
AGED 54 YEARS
S/O T.S GOVINDAPILLAI, POWATHIL HOUSE,
MALLAPPALLY EAST.P.O.,
PATHANAMTHITTA, PIN - 689584
BY ADV R.SANTHOSH BABU
RESPONDENTS:
1 THE AUTHORISED OFFICER
THE THIRUVALLA EAST CO-OPERATIVE BANK LTD.NO.3260
HEAD OFFICE, ERAVIPEROOR,
PATHANAMTHITTA, PIN - 686542
2 THE BRANCH MANAGER
THE THIRUVALLA EAST CO-OPERATIVE BANK LTD.NO.3260
HEAD OFFICE, ERAVIPEROOR,
PATHANAMTHITTA, PIN - 686542
SRI.T.P.PRADEEP (SC)-R1 & R2
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO.7187 OF 2024
2
JUDGMENT
Dated this the 23rd day of February , 2024
The petitioners have approached this Court aggrieved
by the coercive proceedings for recovery of financial
advance made by the Thiruvalla East Co-operative Bank
Limited 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 ₹10 lakhs to the 1st petitioner as
Consumption Loan in the year 2020. The 2nd petitioner is the
guarantor. 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
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 petitioners.
WP(C) NO.7187 OF 2024
3. Though the petitioners requested the Bank to
permit the petitioners 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.P2 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 installments. If
the respondents are 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 respondents, it is submitted that
WP(C) NO.7187 OF 2024
the loan was given to the petitioners in the year 2020. 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.P2 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
WP(C) NO.7187 OF 2024
submitted that the outstanding amount due to the Bank from
the petitioners as on 23.02.2024 is ₹15,43,010/- and the
overdue amount as on 23.02.2024 is ₹10,54,925/-
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 loan
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:
WP(C) NO.7187 OF 2024
(i) The petitioners shall remit the balance
overdue amount of ₹10,54,925/- in 12
consecutive and equal monthly installments
along with accruing interest and other Bank
charges, if any. First of such instalments
shall be paid on or before 25.03.2024.
(ii) If the petitioners commit default in
making payments as directed above, the
respondents will be at liberty to continue with
the coercive proceedings against the
petitioners in accordance with law.
(iii) The petitioners shall also pay current
EMIs along with the aforesaid payments.
(iv) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
WP(C) NO.7187 OF 2024
(v) The petitioners will be at liberty to
approach the Bank for availing One Time
Settlement in the meanwhile, without
violating the payment schedule as directed
above.
Sd/-
N.NAGARESH
JUDGE
hmh
WP(C) NO.7187 OF 2024
APPENDIX OF WP(C) 7187/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE DISCHARGE SUMMARY
OF 2ND PETITIONER ISSUED BY THE GOVT.
MEDICAL COLLEGE HOSPITAL KOTTAYAM
DATED 23/01/2021
Exhibit P1(a) TRUE COPY OF PAYMENT RECEIPT DATED 25-
09-2023 ISSUED BY 2ND RESPONDENT
Exhibit P1(b) TRUE COPY OF PAYMENT RECEIPT DATED 30-
09-2023 ISSUED BY 2ND RESPONDENT
Exhibit P2 A TRUE COPY OF THE NOTICE DATED 22-01-
2024 ISSUED BY THE 1ST RESPONDENT
Exhibit P3 A TRUE COPY OF THE NOTICE/ NEWS ITEM
APPEARED IN THE DESHABHIMANI DAILY
DATED 30-01-2024 REGARDING THE TAKE
OVER OF POSSESSION OF THE IMMOVABLE
PROPERTY OF THE PETITIONERS
Exhibit P4 A TRUE COPY OF THE REQUEST OF THE 1ST
PETITIONER DATED 31-01-2024 ADDRESSED
TO 1ST RESPONDENT
