Kerala High Court
Vivek.G vs Punjab National Bank on 23 May, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 23RD DAY OF MAY 2024 / 2ND JYAISHTA, 1946
WP(C) NO. 17624 OF 2024
PETITIONER
VIVEK.G,
AGED 55 YEARS
S/O GOPALAKRISHNAN NAIR, MANIMANGALAM,
CHERIYANADY PO, CHENGANNUR TALUK,
ALAPPUZHA DISTRICT, PIN - 689511
BY ADV H.PRAVEEN (KOTTARAKARA)
RESPONDENTS:
1 PUNJAB NATIONAL BANK,
CIRCLE SASTRA CENTRE, VAISHNAVI TOWERS,
BYE PASS ROAD, KUMARICHANTA,
AMBALATHARA PO, THIRUVANANTHAPURAM DISTRICT
REPRESENTED BY ITS MANAGER, PIN - 695026
2 THE AUTHORIZED OFFICER,
PUNJAB NATIONAL BANK, CIRCLE SASTRA CENTRE,
VAISHNAVI TOWERS, BYE PASS ROAD,
KUMARICHANTA, AMBALATHARA PO,
THIRUVANANTHAPURAM DISTRICT,
PIN - 695026
BY ADV C.AJITH KUMAR
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.17624 Of 2024
2
JUDGMENT
Dated this the 23rd day of May, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Punjab National Bank to the petitioner and his
wife, invoking the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002.
2. The Bank paid ₹24.5 lakhs towards Term Loan and
₹5,07,000/- towards Vehicle Loan in the year 2018 to the
petitioner and his wife. The petitioner states that though the
petitioner made remittances promptly during the initial
repayment period of the financial advance, he could not pay
the repayment installments promptly later due to Flood and
Covid-19 pandemic. The repayment of loan fell into arrears. It
happened due to reasons beyond the control of the petitioner.
WP(C) No.17624 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.P2 notice.
4. The petitioner states that he 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 installments. If the
respondents are permitted to continue with the coercive
proceedings and auction the secured assets provided by the
petitioner, he 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.17624 Of 2024
the loans were given to the petitioner and his wife in the year
2018. The petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioner and
required him 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 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
WP(C) No.17624 Of 2024
submitted that the total outstanding amount due to the Bank
from the petitioner as on 20.05.2024 is ₹10,43,369.91
(outstanding amount towards Vehicle loan is ₹3,14,603.13)
and the overdue amount towards Housing Loan is
₹7,28,766.78.
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.
WP(C) No.17624 Of 2024
11. The writ petition is therefore disposed of with the
following directions:
(i) The petitioner shall remit the
outstanding amount towards Vehicle Loan of
₹3,14,603.13 within a period of one month.
(ii) The petitioner shall remit the overdue
amount towards Housing Loan of
₹7,28,766.78 in eight consecutive and equal
monthly installments immediately thereafter
along with accruing interest and other Bank
charges, if any.
(iii) If the petitioner commits 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.
WP(C) No.17624 Of 2024
(iv) The petitioner shall also pay current
EMIs towards Housing Loan along with the
aforesaid payments.
(v) 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.17624 Of 2024
APPENDIX OF WP(C) 17624/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE JUDGMENT PASSED BY
THIS HON'BLE COURT IN WP© 20612/2022
DATED 24/6/2022
Exhibit P2 TRUE COPY OF THE E- AUCTION SALE
NOTICE ISSUED BY THE RESPONDENT DATED
8/4/2024
