Kerala High Court
Ajimon P.K vs Kerala State Co-Operative Bank Ltd 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. 2119 OF 2024
PETITIONERS:
1 AJIMON P.K.,
AGED 56 YEARS,
S/O. KESHAVAN,
CHEERAMKULAM HOUSE,
MANARCAD P.O.,
KOTTAYAM, PIN - 686019
2 PREETHIMOL K.G.,
AGED 48 YEARS,
W/O. AJIMON P.K.,
CHEERAMKULAM HOUSE,
MANARCAD P.O.,
KOTTAYAM, PIN - 686019
BY ADVS.
LIJI.J.VADAKEDOM
REXY ELIZABETH THOMAS
TOM E. JACOB
ATHUL V. VADAKKEDOM
RESPONDENTS:
1 KERALA STATE CO-OPERATIVE BANK LTD.,
(ERSTWHILE KOTTAYAM DCB),
REPRESENTED BY ITS AUTHORISED OFFICER,
HEAD OFFICE, P.B. NO. 6515,
COBANK TOWERS, VIKAS BHAVAN P.O.,
THIRUVANANTHAPURAM, PIN - 695033
2 THE AUTHORISED OFFICER
KERALA STATE CO-OPERATIVE BANK LTD.,
(ERSTWHILE KOTTAYAM DISTRICT CO-OPERATIVE
BANK), KOTTAYAM REGIONAL OFFICE,
P. B. NO. 140,
CENTRAL JUNCTION,
KOTTAYAM, PIN - 686001
W.P.(C) No.2119/2024
:2:
3 BRANCH MANAGER,
KERALA STATE CO-OPERATIVE BANK LTD,
(ERSTWHILE KOTTAYAM DISTRICT CO-OPERATIVE
BANK), MANARCAD BRANCH,
MANARCAD,
KOTTAYAM, PIN - 686019
BY ADV. SRI.ATHUL SHAJI
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 23.02.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C) No.2119/2024
:3:
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 Kerala State Co-operative
Bank 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 ₹7.5 lakhs to the petitioners as
Ordinary Loan and ₹20 lakhs as Over Draft facility in the
year 2016 and 2018 respectively. 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 instalments promptly later due
to Covid-19 pandemic. The repayment of loan/advance fell
into arrears later. It happened due to reasons beyond the
control of the petitioners.
3. Though the petitioners requested the Bank to
permit the petitioners to repay the outstanding 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.P2 and P3
notices.
4. The petitioners state that they are still in a
position to clear the outstanding amounts towards the loan,
if sufficient time is given to clear the dues in easy monthly
instalments. 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 the loans were given to the petitioners in the year 2016
and 2018 respectively. 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 Exts.P2 and P3
notices were 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 outstanding amount
immediately thereafter, a short breathing time can be
granted to the petitioners to clear the dues. The Standing
Counsel submitted that the outstanding amount due to the
Bank from the petitioners as on 23.02.2024 is ₹27,15,220/-
and the overdue amount as on 23.02.2024 is ₹26,72,550/-.
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 account 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:
(i) The petitioners shall remit an amount
of ₹3 lakhs on or before 30.03.2024.
(ii) The petitioners shall remit the
balance outstanding amount in subsequent
consecutive 12 equal monthly instalments
thereafter, along with accruing interest and
other Bank charges, if any.
(iii) If the petitioners commit default in
making payments as directed above, the
respondents will be at liberty to continue
with coercive proceedings against the
petitioners in accordance with law.
(iv) If the petitioners pay the amount as
directed above, any coercive proceedings
against the petitioners will stand deferred.
Sd/-
N. NAGARESH
JUDGE
SR
APPENDIX OF WP(C) 2119/2024
PETITIONER'S EXHIBITS:
Exhibit P1 THE COPY OF THE RELEVANT EXTRACT OF
THE LICENSE NO. 11323005000231 DATED
6.4.2023 ISSUED BY COMMISSIONERATE OF
FOOD SAFETY
Exhibit P1(a) THE COPY OF THE LICENSE NO. 502/2023-
2024/SC4/2033 DATED 4/10/2023 ISSUED
FROM THE MANARCAD GRAMA PANCHAYAT
Exhibit P2 THE COPY OF THE NOTICE UNDER SECTION
13(2) DATED 6.5.2023 ISSUED BY THE
2ND RESPONDENT TO THE PETITIONERS
Exhibit P3 THE COPY OF THE NOTICE DATED
7.12.2023 ISSUED BY THE ADVOCATE
COMMISSIONER INTIMATING THE PROPOSED
TAKING OF POSSESSION OF THE
RESIDENTIAL PROPERTY OF THE
PETITIONERS.
