Kerala High Court
Noorjahan Zakkir Hussain vs People’S Urban Co-Operative Bank ... on 27 March, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 27TH DAY OF MARCH 2024/7TH CHAITHRA, 1946
WP(C) NO. 12855 OF 2024
PETITIONER:
NOORJAHAN ZAKKIR HUSSAIN,
AGED 54 YEARS,
KANDAMPARAMB HOUSE,
KRASH ROAD,
THRIKAKKARA,
ERNAKULAM, KERALA, PIN - 682021
BY ADVS.
VARGHESE K.PAUL
SMT.SNEHA DIVAKARAN P.
KASHMEERA ASHRAF
ANAMIKA SASIKUMAR
RESPONDENTS:
1 PEOPLE'S URBAN CO-OPERATIVE BANK LIMITED,
NO.51, HEAD OFFICE,
THRIPUNUTHURA,
REPRESENTED BY GENARAL MANAGER,
PIN - 682301
2 BRANCH MANAGER,
PEOPLE'S URBAN CO-OPERATIVE BANK LIMITED,
NO.51, THRIKAKKARA BRANCH,
VAZHAKKALA, PIN - 682037
BY ADVS.
DEVAPRASANTH P.J
SMINI JOSE(K/262/2015)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 27.03.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C) No.12855/2024
:2:
JUDGMENT
Dated this the 27th day of March, 2024
The petitioner has approached this Court
aggrieved by the coercive proceedings for recovery of
financial advance made by the People's Urban Co-operative
Bank 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 ₹25 lakhs to the petitioner as
Mortgage Loan and ₹40 lakhs as Over Draft facility in the
years 2019 and 2021 respectively. 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 instalments promptly later. The
repayment of loan fell into arrears later. It happened due to
reasons beyond the control of the petitioner.
3. Though the petitioner requested the Bank to
permit the petitioner to repay the overdue 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.P4, P5, P6 and
P7 notices.
4. The petitioner states that she 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 instalments.
If the respondents are 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 respondents, it is submitted that
the loan/advance were given to the petitioner in the years
2019 and 2021 respectively. The petitioner committed
default in repaying the loan / maintaining the credit facility.
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 Exts.P4, P5, P6 and P7 notices were
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 outstanding / 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 towards
Over Draft facility due to the Bank from the petitioner as on
27.03.2024 is ₹47,52,506/-, outstanding amount towards
Mortgage Loan is ₹21,22,186/- and the overdue amount
towards Mortgage Loan is ₹4,72,668/-
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
account 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 an amount
of ₹3 lakhs before 11 am on 30.03.2024.
(ii) The petitioner shall remit the balance
outstanding amount in the Over Draft
account and the balance overdue amount
in the Mortgage Loan account in
subsequent consecutive 12 equal monthly
instalments thereafter, along with accruing
interest and other Bank charges, if any.
(iii) If the petitioner commits default in
making payments as directed above, the
respondents will be at liberty to continue
with coercive proceedings against the
petitioner in accordance with law.
(iv) The petitioner shall also pay current
EMIs towards the Mortgage Loan along
with the aforesaid payments.
(v) If the petitioner pays the amount as
directed above, any coercive proceedings
against the petitioner will stand deferred.
Sd/-
N. NAGARESH
JUDGE
SR
APPENDIX OF WP(C) 12855/2024
PETITIONER'S EXHIBITS:
Exhibit P1 A TRUE COPY OF THE DEATH CERTIFICATE
DATED 25/01/2023, ISSUED BY THE
REGISTRAR OF BIRTH AND DEATH,
CHERANALLOOR GRAMA PANCHAYAT.
Exhibit P2 A TRUE COPY OF THE LETTER DATED
21/10/2019, ISSUED BY THE 2ND
RESPONDENT, SANCTIONING THE LOAN IN
THE NAME OF ZAKKIR HUSSAIN.
Exhibit P3 A TRUE COPY OF THE LETTER DATED
21/10/2019, ISSUED BY THE 2ND
RESPONDENT, SANCTIONING THE LOAN IN
THE NAME OF MUHAMMED ASLAM
Exhibit P4 A TRUE COPY OF THE NOTICE DATED
24/01/2024, ISSUED BY THE 1ST
RESPONDENT TO THE PETITIONER.
Exhibit P5 A TRUE COPY OF THE POSSESSION NOTICE
DATED 23/01/2024, ISSUED BY THE 1ST
RESPONDENT TO THE PETITIONER AND
OTHER GUARANTORS IN RESPECT OF LOAN
ACCOUNT NO. ODCS 133209000000007.
Exhibit P6 A TRUE COPY OF THE NOTICE DATED
26/02/2024 ISSUED BY THE AUTHORIZED
OFFICER TO THE PETITIONER IN RESPECT
OF LOAN NO. ML773/ TR AND ML774/ TR .
Exhibit P7 A TRUE COPY OF THE NOTICE DATED
27/02/2024, ISSUED BY THE AUTHORIZED
OFFICER TO THE PETITIONER AND OTHER
GUARANTORS, IN RESPECT OF LOAN NO.
ODCS 133209000000007.
Exhibit P8 A TRUE COPY OF THE PAYMENT RECEIPT
DATED 13/02/2024, ISSUED BY THE 2ND
RESPONDENT.
Exhibit P9 A TRUE COPY OF THE PAYMENT RECEIPT
DATED 29/02/2024, ISSUED BY THE 2ND
RESPONDENT.
