Kerala High Court
Bijoy Sebastian vs Kerala State Co-Operative Bank Ltd., ... on 28 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 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
WP(C) NO. 11412 OF 2024
PETITIONERS:
1 BIJOY SEBASTIAN,
AGED 53 YEARS, S/O. SEBASTIAN,
KUTTIYARA HOUSE, KALIYAR P.O.,
OVANNAPPURAM, KALIYAR, IDUKKI DISTRICT,
PIN - 685 607.
2 LUCY BIJOY,
AGED 52 YEARS, W/O. BIJOY, KUTTIYARA HOUSE,
KALIYAR P.O., OVANNAPPURAM, KALIYAR,
IDUKKI DISTRICT, PIN - 685 607.
BY ADVS.
G.HARIHARAN
PRAVEEN.H.
K.S.SMITHA
B.R.SINDU
V.R.SANJEEV KUMAR
V.ROHITH
AFNA V.P.
RESPONDENTS:
1 KERALA STATE CO-OPERATIVE BANK LTD.,
(FORMERLY KNOWN AS IDUKKI DISTRICT
C¬O-OPERATIVE BANK LTD.,)
IDUKKI COLONY P.O., IDUKKI DISTRICT
[REPRESENTED BY ITS BRANCH MANAGER].,
PIN - 685 602.
2 AUTHORIZED OFFICER (SARFAESI)
THE KERALA STATE CO-OPERATIVE BANK LTD.,
IDUKKI COLONY P.O., IDUKKI DISTRICT,
PIN - 685 602.
W.P.(C) No.11412 of 2024
:2:
3 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
(GENERAL), COLLECTORATE, PAINAVU P.O.,
IDUKKI DISTRICT -, PIN - 685 603.
4 THE REGISTRAR OF CO-OPERATIVE SOCIETIES,
JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION,
THYCAUD P.O, THIRUVANANTHAPURAM,
PIN - 695 014.
BY ADV
GILBERT GEORGE CORREYA, FOR R2
S.GOPINATHAN, SENIOR GOVERNMENT PLEADER,
FOR R3 AND R4.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 28.05.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C) No.11412 of 2024
:3:
JUDGMENT
Dated this the 28th 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 Limited to the petitioners, invoking the provisions of the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002.
2. The Bank paid ₹1 lakh towards Vanitha Loan and
₹10 lakhs and ₹4 lakhs towards Cash Credit facility to the
petitioners in the years 2016, 2018 and 2010. The
petitioners state that though the petitioners made
remittances promptly during the initial repayment period of
the financial advance, they could not pay the repayment
instalments promptly later. The repayment of loans fell into
arrears later due to Covid-19 pandemic. It happened due to
reasons beyond the control of the petitioners.
3. Though the petitioners requested the Bank to
permit the petitioners 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.P4 notice.
4. The petitioners state that they are still in a position
to clear the overdue amounts towards the loans, 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
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 the respondents, it is submitted that
the loans were given to the petitioners in the years 2016,
2018 and 2010. The petitioners committed default in
repaying the loans.
6. The Bank repeatedly reminded the petitioners and
required them to clear the dues. The petitioners 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.P4 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 petitioners to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from
the petitioners as on 20.03.2024 is ₹35,18,929/-.
8. I have heard the learned Counsel for the
petitioners and the learned Standing Counsel representing
the Bank. I have also heard the learned Government Pleader
representing respondents 3 and 4.
9. The specific case of the petitioners is that the
petitioners have been making the repayment and maintaining
the loan accounts initially. The default in repayment of the
loan accounts 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
outstanding amount of ₹35,18,929/- in 12
equal and consecutive monthly instalments
along with accruing interest and other Bank
charges, if any. First of such instalments
shall be paid on or before 28.06.2024.
(ii) If the petitioners commit single default
in making payments as directed above, the
respondents will be at liberty to continue
with coercive proceedings against the
petitioners in accordance with law.
(iii) If the petitioners pay the instalments
as directed above, any coercive
proceedings against the petitioners shall
stand deferred.
Sd/-
N. NAGARESH
JUDGE
AMR
APPENDIX OF WP(C) 11412/2024
PETITIONERS' EXHIBITS
Exhibit P1 A TRUE COPY OF THE PASSBOOK IN
CONNECTION WITH THE LOAN A/C
NO.120106004820046 ISSUED IN THE NAME
OF THE 1ST PETITIONER BY THE 1ST
RESPONDENT BANK.
Exhibit P2 A TRUE COPY OF THE PASSBOOK IN
CONNECTION WITH THE LOAN A/C NO.
120106004800025 ISSUED IN THE NAME OF
THE 2ND PETITIONER BY THE 1ST
RESPONDENT BANK.
Exhibit P3 A TRUE COPY OF THE PASSBOOK IN
CONNECTION WITH THE LOAN A/C NO.
120106026820655 ISSUED IN THE NAME OF
THE 2ND PETITIONER BY THE 1ST
RESPONDENT BANK.
Exhibit P4 A TRUE COPY OF THE DEMAND NOTICE DATED
10.01.2020 ISSUED BY THE 1ST
RESPONDENT ADDRESSED TO THE
PETITIONERS 1 AND 2 INVOKING THE
PROVISIONS OF SECTION 13(2) OF THE
SARFAESI ACT.
Exhibit P5 A TRUE COPY OF THE ORDER DATED
06.06.2023 PASSED BY THE 3RD
RESPONDENT IN CONNECTION WITH ARC NO.
659/2022.
Exhibit P6 A TRUE COPY OF THE PLAINT DATED
25.08.2021 FILED BEFORE THE 3RD
RESPONDENT IN CONNECTION WITH ARC NO.
911/2021 BY THE DEPUTY GENERAL MANAGER
OF THE 1ST RESPONDENT BANK.
