Kerala High Court
Saleem vs Kerala State Co-Operative Bank Ltd on 20 May, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
MONDAY, THE 20TH DAY OF MAY 2024 / 30TH VAISAKHA, 1946
WP(C) NO. 16203 OF 2024
PETITIONERS:
1 SALEEM
AGED 45 YEARS, S/O SAIDUTTY HAJI,
KURUKURUKAM POYIL HOUSE, ELETTIL,
KIZHAKKOTH VILLAGE, THAMARASSERY TALUK,
KOZHIODE DISTRICT, PIN - 673572.
2 IMBICHAYISHA UMMA
AGED 64 YEARS, W/O. SAIDUTTY HAJI,
KURUKURUKAM POYIL HOUSE, ELETTIL,
KIZHAKKOTH VILLAGE, THAMARASSERY TALUK,
KOZHIODE DISTRICT, PIN - 673572.
BY ADVS.
RAFEEK. V.K.
VICTOR ANTONY NOONE
U.M.HASSAN
SALMAN FARIS
RESPONDENTS:
1 KERALA STATE CO-OPERATIVE BANK LTD
REPRESENTED BY ITS MANAGER (KERALA BANK),
KALLAI BRANCH, KALLAI ROAD, P.O
CHALAPPURAM,KOZHIKODE, PIN - 673002.
2 THE AUTHORISED OFFICER
KERALA STATE CO-OPERATIVE BANK LTD,
KERALA BANK, KALLAI BRANCH,
KALLAI ROAD, P.O CHALAPPURAM,
KOZHIKODE, PIN - 673002.
W.P.(C)No.16203 of 2024
:2:
3 MUHAMMED ABDUL AZEEZ
AGED 47 YEARS, S/O ABDUL RAHMAN,
OZHALAKKUNNUMMAL HOUSE, PUTHEN PEEDIKA,
ELETTIL P.O, KIZHAKKOTH VILLAGE,
THAMARASSERY TALUK,
KOZHIKODE DISTRICT, PIN - 673572.
4 UMAIBA
W/O. MUHAMMED ABDUL AZEES,
POWER OF ATTORNEY HOLDER OF MUHAMMED ABDUL
AZEES, PUTHAN PEEDIKA HOUSE, ELETTIL P.O.
KIZHAKKOTH VILLAGE, THAMARASSERY TALUK,
KOZHIKODE DISTRICT, PIN - 673572.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 20.05.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C)No.16203 of 2024
:3:
JUDGMENT
Dated this the 20th day of May, 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 respondents
3 and 4, invoking the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002.
2. The Bank paid ₹21,50,000/- to respondents 3
and 4 as Ordinary Loan in the year 2017 by mortgaging the
property of the petitioners. The petitioners state that though
respondents 3 and 4 made remittances promptly during the
initial repayment period of the financial advance, they could
not pay the repayment instalments promptly later due to
financial constraints. The repayment of loan fell into arrears.
It happened due to reasons beyond the control of
respondents 3 and 4.
3. Though the borrowers requested the Bank to
permit them 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.P3 notice.
4. The petitioners state that they are 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
respondents 1 and 2 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 respondents 1 and 2, it is submitted
that the loan was given to respondents 3 and 4 in the year
2017. Respondents 3 and 4 committed default in repaying
the loan.
6. The Bank repeatedly reminded respondents 3 and
4 and required them to clear the dues. Respondents 3 and 4
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.P3 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 petitioner to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from
respondents 3 and 4 is ₹23,54,154/- and the overdue amount
as on 20.05.2024 is ₹11,08,744/-.
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
respondents 3 and 4 have been making the repayment and
maintaining the loan account initially. The default in
repayment 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 the overdue
amount of ₹11,08,744/- in 12 equal and
consecutive monthly instalments along with
accruing interest and other Bank charges, if
any. The first instalment shall be paid on or
before 20.06.2024.
(ii) If the petitioners commit default in
making payments as directed above,
respondents 1 and 2 will be at liberty to
continue with 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.
Sd/-
N. NAGARESH
JUDGE
ams
APPENDIX OF WP(C) 16203/2024
PETITIONERS' EXHIBITS
Exhibit P1 TRUE COPY OF THE JUDGMENT IN WPC
851/2022 DATED 29.11.2022
Exhibit P2 TRUE COPY PAYMENT RECEIPTS DATED FROM
30.12.2022 TO 05.12.2023
Exhibit P3 TRUE COPY OF THE NOTICE DATED
03.04.2024 ISSUED BY THE ADVOCATE
COMMISSIONER IN M.C. NO.378/2022,
FILED BY THE RESPONDENT BEFORE THE
HON'BLE CHIEF JUDICIAL MAGISTRASTE
COURT, KOZHIKODE
