Joy Augustine vs Kerala State Co-Operative Bank
2024 Latest Caselaw 14628 Ker

Citation : 2024 Latest Caselaw 14628 Ker
Judgement Date : 31 May, 2024

Kerala High Court

Joy Augustine vs Kerala State Co-Operative Bank on 31 May, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                 PRESENT
                   THE HONOURABLE MR.JUSTICE N.NAGARESH
       FRIDAY, THE 31ST DAY OF MAY 2024 / 10TH JYAISHTA, 1946
                          WP(C) NO. 3395 OF 2024
PETITIONER

              JOY AUGUSTINE
              AGED 55 YEARS
              S/O AUGUSTINE, PUTHIYAKUNNEL HOUSE,
              IDIYANAL P.O, RAMAPURAM,
              KOTTAYAM, PIN - 686576

              BY ADVS.
              V.A.VINOD
              T.S.BIJU


RESPONDENT:

              KERALA STATE CO-OPERATIVE BANK
              REPRESENTED BY ITS AUTHORISED OFFICER,
              REGIONAL OFFICE, P.B NO 140,
              CENTRAL JUNCTION, KOTTAYAM,
              PIN - 686001

              SRI.ATHUL SHAJI-STANDING COUNSEL


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
31.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) No.3395 Of 2024
                               2


                         JUDGMENT

Dated this the 31st 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 ₹20 lakhs to the petitioner as Term

Loan in the year 2021. 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 huge loss in

his business. The repayment of loan fell into arrears. 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 WP(C) No.3395 Of 2024

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.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 installments. If the

respondent is 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 respondent, it is submitted that the

loan was given to the petitioner in the year 2021. The

petitioner committed default in repaying the loan. WP(C) No.3395 Of 2024

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 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 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 as on 24.05.2024 is ₹19,73,691/- and the

overdue amount as on 24.05.2024 is ₹2,39,660/-. WP(C) No.3395 Of 2024

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 the overdue

amount of ₹2,39,660/- in ten consecutive and

equal monthly installments along with

accruing interest and other Bank charges, if

any. First of such installments shall be paid WP(C) No.3395 Of 2024

on or before 01.07.2024.

(ii) 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.