S.Jayan Vs. the Manager, Alappuzha Dist. Co-op.Bank - Court Judgment

SooperKanoon Citationsooperkanoon.com/1131409
CourtKerala High Court
Decided OnFeb-11-2014
JudgeHONOURABLE MR. JUSTICE A.V.RAMAKRISHNA PILLAI
AppellantS.Jayan
RespondentThe Manager, Alappuzha Dist. Co-op.Bank
Excerpt:
in the high court of kerala at ernakulam present: the honourable mr. justice a.v.ramakrishna pillai tuesday,the11h day of february201422nd magha, 1935 wp(c).no. 7380 of 2013 (v) --------------------------- petitioner : -------------------- s.jayan, nayanalayam, thottappally, alappuzha district. by advs.sri.s.sanal kumar smt.bhavana velayudhan smt.t.j.seema respondent(s) : ---------------------------- 1. the manager, alappuzha district co-operative bank ambalapuzha branch, ambalapuzha p.o., alappuzha.2. the authorized officer, (securitisation and re-construction of financial assets and enforcement of security interest act) alappuzha district co-operative bank ambalapuzha branch, ambalapuzha p.o., alappuzha. r1 & r2 by adv. smt.k.n.rajani, sc this writ petition (civil) having been finally heard on1102-2014, the court on the same day delivered the following: mn ...2/- wp(c).no. 7380 of 2013 (v) -------------------------------------- appendix petitioners' exhibits : ------------------------------------- exhibit p1. copy of the possession notice dated0202.2013 issued by the2d respondent. exhibit p2. copy of the discharge card relating to the treatment of the petitioner's son issued by medical college hospital, kottayam dated2708.2012. respondent(s)' exhibits : nil ------------------------------------------------------------ //true copy// p.s. to judge mn a.v.ramakrishna pillai, j --------------------------------------------- w.p.(c) no.7380 of 2013 --------------------------------------------- dated this the 11th day of february, 2014 judgment the petitioner is challenging the jurisdiction of the first respondent to initiate proceedings under the securitisation and re-construction of financial assets and enforcement of security interest act (hereinafter referred to as 'the act' for short).2. the petitioner alleges that he is a fisherman by avocation and he availed a loan of `1 lakh from the first respondent bank for the construction of a residential house. according to the petitioner, he was promptly paying the instalments in the loan account.3. the petitioner further alleges that since the petitioner's son met with an accident, the petitioner incurred a very heavy liability and the remittance of instalment had fallen due. at this juncture, the wpc no.7380 of 2013 2 respondent bank initiated proceedings against the petitioner under act 54 of 2002. possession notice under section 13(4) of act 54 of 2002 was also issued. thus, the petitioner has come up before this court.4. arguments have been heard.5. apart from challenging the initiation of proceedings under the act, the petitioner is also seeking the indulgence of this court for regularisation of the loan account after clearance of the outstanding dues and also for instalment facility.6. this court is of the definite view that this writ petition can be disposed of reserving the right of the petitioner to approach the respondent bank with a representation to get the loan account regularised. therefore, this writ petition is disposed of permitting the petitioner to file a representation before the respondent bank within a period of one wpc no.7380 of 2013 3 month from today seeking regularisation of the loan account after clearance of the outstanding dues. in the event of filing such a representation, the same shall be considered by the respondent bank after giving an opportunity of being heard. till that exercise is completed, further proceedings against the petitioner shall be kept in abeyance. the question regarding the competence of the respondent to initiate action under the act is left open. sd/- a.v.ramakrishna pillai judge css/ true copy p.s.to judge
Judgment:

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.V.RAMAKRISHNA PILLAI TUESDAY,THE11H DAY OF FEBRUARY201422ND MAGHA, 1935 WP(C).No. 7380 of 2013 (V) --------------------------- PETITIONER : -------------------- S.JAYAN, NAYANALAYAM, THOTTAPPALLY, ALAPPUZHA DISTRICT. BY ADVS.SRI.S.SANAL KUMAR SMT.BHAVANA VELAYUDHAN SMT.T.J.SEEMA RESPONDENT(S) : ---------------------------- 1. THE MANAGER, ALAPPUZHA DISTRICT CO-OPERATIVE BANK AMBALAPUZHA BRANCH, AMBALAPUZHA P.O., ALAPPUZHA.

2. THE AUTHORIZED OFFICER, (SECURITISATION AND RE-CONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT) ALAPPUZHA DISTRICT CO-OPERATIVE BANK AMBALAPUZHA BRANCH, AMBALAPUZHA P.O., ALAPPUZHA. R1 & R2 BY ADV. SMT.K.N.RAJANI, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON1102-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Mn ...2/- WP(C).No. 7380 of 2013 (V) -------------------------------------- APPENDIX PETITIONERS' EXHIBITS : ------------------------------------- EXHIBIT P1. COPY OF THE POSSESSION NOTICE DATED0202.2013 ISSUED BY THE2D RESPONDENT. EXHIBIT P2. COPY OF THE DISCHARGE CARD RELATING TO THE TREATMENT OF THE PETITIONER'S SON ISSUED BY MEDICAL COLLEGE HOSPITAL, KOTTAYAM DATED2708.2012. RESPONDENT(S)' EXHIBITS : NIL ------------------------------------------------------------ //TRUE COPY// P.S. TO JUDGE Mn A.V.RAMAKRISHNA PILLAI, J --------------------------------------------- W.P.(C) No.7380 of 2013 --------------------------------------------- Dated this the 11th day of February, 2014 JUDGMENT

The petitioner is challenging the jurisdiction of the first respondent to initiate proceedings under the Securitisation and Re-construction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as 'the Act' for short).

2. The petitioner alleges that he is a fisherman by avocation and he availed a loan of `1 lakh from the first respondent bank for the construction of a residential house. According to the petitioner, he was promptly paying the instalments in the loan account.

3. The petitioner further alleges that since the petitioner's son met with an accident, the petitioner incurred a very heavy liability and the remittance of instalment had fallen due. At this juncture, the WPC No.7380 of 2013 2 respondent bank initiated proceedings against the petitioner under Act 54 of 2002. Possession notice under Section 13(4) of Act 54 of 2002 was also issued. Thus, the petitioner has come up before this Court.

4. Arguments have been heard.

5. Apart from challenging the initiation of proceedings under the Act, the petitioner is also seeking the indulgence of this Court for regularisation of the loan account after clearance of the outstanding dues and also for instalment facility.

6. This Court is of the definite view that this writ petition can be disposed of reserving the right of the petitioner to approach the respondent bank with a representation to get the loan account regularised. Therefore, this writ petition is disposed of permitting the petitioner to file a representation before the respondent bank within a period of one WPC No.7380 of 2013 3 month from today seeking regularisation of the loan account after clearance of the outstanding dues. In the event of filing such a representation, the same shall be considered by the respondent bank after giving an opportunity of being heard. Till that exercise is completed, further proceedings against the petitioner shall be kept in abeyance. The question regarding the competence of the respondent to initiate action under the Act is left open. Sd/- A.V.RAMAKRISHNA PILLAI JUDGE css/ true copy P.S.TO JUDGE