Mohammed U M vs The Authorized Officer
2024 Latest Caselaw 13785 Ker

Kerala High Court

Mohammed U M vs The Authorized Officer 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. 18457 OF 2024
PETITIONER:

         MOHAMMED U M
         AGED 48 YEARS, S/O MOIDEENKUTTY,
         RAILWAY IST SIGNAL, UDAYANAGAR,
         MANJESHWAR P O KASARGOD,
         PIN - 671 323.

         BY ADVS.
              MANJUSHA K
              SREELAKSHMI SABU

RESPONDENTS:

    1    THE AUTHORIZED OFFICER
         THE KERALA STATE CO-OPERATIVE BANK LTD
         KANNUR REGIONAL OFFICE, KANNUR,
         PIN - 670 001.

    2    THE KERALA STATE CO-OPERATIVE BANK LTD
         HOSANGADY BRANCH, HOSSANGADY,
         KASARGOD REPRESENTED BY THE BRANCH MANAGER,
         PIN - 671 323.

    3    THE BRANCH MANAGER
         THE KERALA STATE CO-OPERATIVE BANK LTD HOSDURG,
         HOSANGADY BRANCH, HOSSANGADY, KASARGOD,
         PIN - 671 323.

         BY ADV
              M.SASINDRAN

     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.18457 of 2024
                                  :2:




                             JUDGMENT

Dated this the 28th 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 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 ₹15 lakhs to the petitioner as

Housing Loan in the year 2015. 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 instalments promptly later. The

repayment of loan fell into arrears later due to financial

stringency. 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 Exts.P1 and P2

notices.

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 instalments. 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

the loan was given to the petitioner in the year 2015. 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 Exts.P1 and P2 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 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

the petitioner is ₹20,71,639/- and the overdue amount as on

28.05.2024 is ₹6,96,137/-.

8. I have heard the learned Counsel for the petitioner

and the learned 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 account 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 his liability.

11. The writ petition is therefore disposed of with the

following directions:

(i) The petitioner shall remit the overdue

amount of ₹6,96,137/- 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 petitioner commits single default

in making payments as directed above, the

respondents will be at liberty to continue

with coercive proceedings against the

petitioner in accordance with law.

(iii) The petitioner shall also pay current

EMIs along with the aforesaid payments.

         (iv)    If the petitioner pays the instalments

         as      directed    above,     any     coercive

proceedings against the petitioner shall

stand deferred.

Sd/-

N. NAGARESH JUDGE AMR

APPENDIX OF WP(C) 18457/2024

PETITIONER'S EXHIBITS

Exhibit P1 TRUE COPY OF DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT UNDER SECTION 13(2) OF THE SARFAESI ACT DATED NIL.

Exhibit P2 TRUE COPY OF POSSESSION NOTICE ISSUED BY THE 1ST RESPONDENT DATED 21-10-2023 UNDER 13(4) OF THE SARFAESI ACT.

Exhibit P3 TRUE COPY OF ORDER DATED 20-3-2024 IN CMP NO. 868 OF 2024 OF CHIEF JUDICIAL MAGISTRATE COURT, KASARGOD.