Kerala High Court
Sindhu S vs The Kerala State Co-Operative Bank on 21 May, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 21ST DAY OF MAY 2024 / 31ST VAISAKHA, 1946
WP(C) NO. 18042 OF 2024
PETITIONER:
SINDHU S
AGED 51 YEARS
W/O RAMESH,RODUVILA PUTHEN VEEDU,
KULARTHOORKONAM, CHIRAKKARA P.O,
KOLLAM., PIN - 691578
BY ADVS.
N.RENJU
C.C.ANOOP
RESPONDENTS:
1 THE KERALA STATE CO-OPERATIVE BANK
PARIPALLY BRANCH,
PARIPALLY NILAMEL ROAD,
PARIPALLY, KOLLAM,
REP BY ITS SECRETARY,
PIN - 691573
2 AUTHORISED OFFICER
KERALA STATE CO-OPERATIVE BANK,
PARIPALLY BRANCH,
PARIPALLY NILAMEL ROAD, PARIPALLY,
KOLLAM., PIN - 691573
BY SRI. P.C. SASIDHARAN, STANDING COUNSEL
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 21.05.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) NO.18042 OF 2024
2
JUDGMENT
Dated this the 21st day of May, 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 ₹1,60,000/- to the petitioner as
Ordinary Loan in the year 2017. 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
various unforeseen circumstances happened one after other
including domonetisation, floods and lock down due to Covid-
19. The repayment of loan fell into arrears. It happened due
WP(C) NO.18042 OF 2024
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
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 Exts.P3 and P4 notices.
4. The petitioner states that she is still in a position to
clear the outstanding amounts towards the loan, if sufficient
time is given to clear the dues in easy monthly installments. 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
WP(C) NO.18042 OF 2024
the loan was given to the petitioner in the year 2017. The
petitioner committed default in repaying the loan.
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. P3 and P4 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 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
WP(C) NO.18042 OF 2024
the petitioner as on 21.05.2024 is ₹3,71,832/- .
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 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.
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
₹ 75,000/- within a period of one month from
today and the balance outstanding amount in
subsequent consecutive eight equal monthly
WP(C) NO.18042 OF 2024
instalments thereafter, along with accruing
interest and other Bank charges, if any.
(ii) If the petitioner commits default in
making payments as directed above, the
respondents 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
DCS
WP(C) NO.18042 OF 2024
APPENDIX OF WP(C) 18042/2024
PETITIONER EXHIBITS
EXHIBIT P1 THE TRUE COPY CASTE CERTIFICATE DATED
28.10.2022 ISSUED FROM KOLLAM TALUK
OFFICE
EXHIBIT P2 TRUE COPY OF THE MEDICAL CERTIFICATE
ISSUED BY DEPARTMENT OF CARDIOLOGY,
MODEL & SUPER SPECIALITY HOSPITAL
EMPLOYEES STATE INSURANCE CORPORATION,
ASHRAMAM , KOLLAM
EXHIBIT P3 TRUE COPY OF THE NOTICE DATED
24.09.2023 ISSUED BY THE RESPONDENT
BANK
EXHIBIT P4 TRUE COPY OF THE NOTICE DATED
21.03.2024 ISSUED BY THE RESPONDENT
BANK
