Saleema vs The Nilambur Co-Operative Urban Bank ...
2024 Latest Caselaw 16068 Ker

Kerala High Court

Saleema vs The Nilambur Co-Operative Urban Bank ... on 7 June, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                 PRESENT
                   THE HONOURABLE MR.JUSTICE N.NAGARESH
       FRIDAY, THE 7TH DAY OF JUNE 2024 / 17TH JYAISHTA, 1946
                         WP(C) NO. 20334 OF 2024
PETITIONER:

              SALEEMA
              AGED 45 YEARS
              D/O. MUHAMMED HAJI, MEHFIL HOUSE,
              MARATHANI, THRIKKALANGOD P.O.,
              MALAPPURAM DISTRICT, PIN - 676123

              BY ADV K.RAKESH


RESPONDENT:

              THE NILAMBUR CO-OPERATIVE URBAN BANK LTD.
              HEAD OFFICE, NILAMBUR P.O.,
              MALAPPURAM DISTRICT, REPRESENTED BY ITS AUTHORIZED
              OFFICER.,
              PIN - 679329

              BY ADVS.
              RAMESH BABU T (STANDING COUNSEL)
              C.K.SREEJITH(K/2048/1999)


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
07.06.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) No.20334 Of 2024
                                 2


                          JUDGMENT

Dated this the 7th day of June, 2024

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the Nilambur Co-operative Urban 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 ₹40 lakhs to the petitioner as

Overdraft in the year 2019. The petitioner states that though

the petitioner made remittances promptly during the initial

repayment period of the financial advance, she could not pay

the repayment installments promptly later due to extreme

financial impediments. The repayment of advance fell into

arrears. It happened due to reasons beyond the control of the

petitioner.

WP(C) No.20334 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 she is still in a position to

clear the overdue amounts towards the advance, 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, she 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

advance was given to the petitioner in the year 2019. The WP(C) No.20334 Of 2024

petitioner committed default in maintaining the advance.

6. The Bank repeatedly reminded the petitioner and

required her 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.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

to the petitioner to clear the dues. The Standing Counsel

submitted that the outstanding amount due to the Bank from

the petitioner is ₹56,51,930/- and the overdue amount WP(C) No.20334 Of 2024

is ₹25,80,074/-.

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 advance initially. The default in repayment of the advance

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 ₹25,80,074/- in six consecutive

and equal monthly installments along with

accruing interest and other Bank charges, if WP(C) No.20334 Of 2024

any. First of such installments shall be paid

on or before 08.07.2024.

(ii) If the petitioner commits single 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.20334 Of 2024

APPENDIX OF WP(C) 20334/2024

PETITIONER EXHIBITS

Exhibit P1 A TRUE COPY OF THE NOTICE DATED 19-04- 2024 ISSUED BY THE RESPONDENT TO THE PETITIONER