Kerala High Court
N.K.Krishnaveni vs The Kerala State Co-Op Bank Ltd 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. 9669 OF 2024
PETITIONER:
N.K.KRISHNAVENI
AGED 74 YEARS
W/O LATE RATHNASINGH, NELLIPARAMBIL HOUSE,
PATTURAIKKAL, THRISSUR DT, PIN - 680022
BY ADVS.
M.R.REENA
P.S.SUJETH
RESPONDENT:
THE KERALA STATE CO-OP BANK LTD.
THRISSUR MAIN BR, THRISSUR DT
REP BY ITS AUTHORIZED OFFICER, SAHAKARANA
SAPTHATHI MANDIRAM KOVILAKATHUMPADAM
THRISSUR, PIN - 680022
BY ADV SRI.P.C. SASIDHARAN, STANDING COUNSEL
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 27.03.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) No.9669 of 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 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 ₹1.5 Crores and ₹3.5 Crores
towards Over Draft facilities to the petitioner. 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
due to financial difficulty. The repayment of advances 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 Ext.P2 notice.
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
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. The petitioner committed default in maintaining the
advances. 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.P2 was issued in these
circumstances. The petitioner has not advanced any legal
reasons to thwart the coercive proceedings initiated by the
Bank.
6. The Standing Counsel, however, submitted that if
the petitioner is 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 petitioner to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from
the petitioner as on 27.03.2024 is ₹11,19,91,455/-.
7. I have heard the counsel for the petitioner and the
Standing Counsel representing the Bank.
8. 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.
9. 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.
10. The writ petition is therefore disposed of with the
following directions:
(i) The petitioner shall remit ₹2 Crores on
or before 15.04.2024 and the balance
outstanding amount in 10 consecutive and
equal monthly instalments thereafter along
with accruing interest and other Bank
charges, if any.
(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) If the petitioner makes payments as
directed above, coercive proceedings, if any,
against the petitioner shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
spk
APPENDIX OF WP(C) 9669/2024
PETITIONER EXHIBITS
Exhibit -P1 A TRUE COPY OF THE POSSESSION NOTICE
DATED 24/3/2022 ISSUED BY THE
RESPONDENT
Exhibit -P2 A TRUE COPY OF THE NOTICE OF THE
ADVOCATE COMMISSIONER DATED 27-09-2022
Exhibit -P3 A TRUE COPY OF THE STATUS OF THE WP
( C) 32414 /2022 OF THE HON'BLE HIGH
COURT, ERNAKULAM
Exhibit -P4 A TRUE COPY OF THE REPRESENTATION
DATED 04-03-2024 SENT BY THE
PETITIONER
