IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE29H DAY OF JANUARY20149TH MAGHA, 1935 WP(C).No. 2884 of 2014 (I) --------------------------- PETITIONER : -------------------------- IBRAHIM K.M., S/O.MOITHEEN, KUTTIKKUCHALIL VEEDU, PALA P.O., KOTTAYAM DISTRICT. BY ADVS.SRI.THOMAS ABRAHAM (NILACKAPPILLIL) SRI.MANU TOM RESPONDENT(S): ---------------------------- 1. THE KOTTAYAM DISTRICT CO-OPERATIVE BANK LTD., PALA MAIN BRANCH, KOTTAYAM DISTRICT,PIN-686 575, REPRESENTED BY ITS BRANCH MANAGER.
2. THE AUTHORISED OFFICER, THE KOTTAYAM DISTRICT CO-OPERATIVE BANK LTD, HEAD OFFICE, KOTTAYAM DISTRICT, PIN-686 001 BY SRI.SUNIL CYRIAC, SC, DIST.CO-OP,BANK,KTM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON2901-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C).No. 2884 of 2014 (I) ----------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXT.P1 - TRUE COPY OF THE APPLICATION FILED BY THE RESPONDENT BEFORE THE CHIEF JUDICIAL MAGISTRATE COURT, KOTTAYAM. EXT.P2 - TRUE COPY OF THE NOTICE DTD.16-01-2014 ISSUED BY THE ADVOCATE COMMISSIONER. RESPONDENT(S)' EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts P.R. RAMACHANDRA MENON J.
~~~~~~~~~~~~~~~~~~~~~~ W.P.(C) No. 2884 of 2014 ~~~~~~~~~~~~~~~~~~~~~ Dated, this the 29th day of January, 2014 JUDGMENT
The petitioner availed a housing loan of Rs. Four lakhs from the respondent Bank on 13.08.2011, creating security interest over the property in question. Because of the adverse circumstances, the repayment could not be effected on time, as scheduled, which made the petitioner a defaulter and the Bank proceeded with the steps under the SARFAESI Act, after declaring the account as 'NPA'. In the said circumstance, the petitioner approached this Court with the following prayers : "(i) Call for the records leading to Ext. P1 and P2 quash the same by issuing a writ of certiorari or any other appropriate order or direction. (ii) Issue a writ of mandamus or any other appropriate writ, order or direction commanding the respondents to refrain from all steps initiated pursuant to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 against the petitioners including Ext. P1 and P2 notice. (iii) Issue a writ of mandamus or any other appropriate writ, order or direction commanding the respondents to W.P.(C) No. 2884 of 2014 :
2. : permit the petitioner to close the entire loan and allow the petitioners to repay the outstanding debt as on today in 15 equal monthly installments. And (iv) Such other order or direction deems fit and proper for this Hon'ble Court in the facts and circumstances of the case.
2. The learned counsel for the petitioner submits that the default was never wilful and that earnest efforts are being taken to clear the entire overdue amount. It is stated that the petitioner shall continue to effect the payment without fail, simultaneously pointing out that, there is absolutely no dispute whatsoever with regard to the rights and liberties of the Bank.
3. The learned counsel appearing for the respondent Bank submits that as on today a sum of Rs. 4,60,122/- is outstanding in respect of the loan account, out of which Rs.1.64 lakhs is due towards the defaulted installments and unless and until the overdue amount is cleared, the claim for the petitioner to have the loan account regularized is not liable to be entertained. The learned counsel for the petitioner submits that the petitioner is ready and willing to clear the entire loan within the shortest possible time and W.P.(C) No. 2884 of 2014 :
3. : only relief now pressed before this Court is to grant 'ten' installments in this regard.
4. After hearing both the sides and considering the particular facts and circumstances including the fact that the loan availed by the petitioner is in the housing sector, the petitioner is permitted to clear the entire outstanding liability by way of 'ten' equal monthly installments; the first of which shall be effected on before the last working day of February 2014; to be followed by similar installments to be effected on or before the last working day of succeeding months. The recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if the petitioner commits any default in remitting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump from the stage where it stands now. The Writ Petition is disposed of. Sd/- P. R. RAMACHANDRA MENON, (JUDGE) kmd