Back
2021 Supreme(Ker) 222
IN THE HIGH COURT OF KERALA AT ERNAKULAM
A.M. BADAR, J.
Saril, S/o. Kochumon – Petitioner
Versus
The Branch Manager, The Kerala State Co-Op Bank, Arimbur Branch & Ors. – Respondents
WP(C) No. 8798 of 2021 (Y)
Decided On : 07-04-2021
For the Petitioner: Smt. M.R. Reena.
For the Respondent: Sri. P.C. Sasidharan, Standing Counsel.
Point of Law: Regularisation of the loan account by paying the loan amount in instalments - Petitioner is directed to clear overdue amount in eight equated successive monthly installments commencing In addition, petitioner shall pay EMIs regularly.
Headnote:
SARFAESI Act - Bank - Loan - Paying Loan amount in Installments - Petitioner had availed a from 1st respondent bank in year 2017 and term of loan was 10 years - Petitioner had defaulted in repayment of loan which resulted initiation of proceedings under SARFAESI Act by respondents - Petitioner wants to regularize loan account by paying loan amount in installments and ten installments commencing granted for repayment of loan amount - Respondents opposed petition by submitting that overdue amount and recalled amount of loan is more than Rs.10 lakhs - Respondents have already initiated action under SARFAESI Act and notice for taking symbolic possession of secured asset was issued.
Finding of the Court: Considering the facts of instant petition and ales considering submissions made at bar - If petitioner complies with these directions, respondents shall keep coercive action, initiated against petitioner under SARFAESI Act, in abeyance. In case of a single default, respondents are at liberty to continue action under SARFAESI Act initiated against the petitioner - No further extension of time for compliance of this direction shall be granted to petitioner.
Result: writ petition is disposed of.
JUDGMENT :
Heard both sides.
2. The petitioner had availed a loan of Rs.10,00,000/- (Rupees ten lakhs only) from the 1st respondent bank in the year 2017 and the term of the loan was 10 years. The petitioner had defaulted in repayment of the loan which resulted initiation of the proceedings under the SARFAESI Act by the respondents. Learned counsel for the petitioner submits that now the petitioner wants to regularise the loan account by paying the loan amount in instalments and ten instalments commencing from May 2021 be granted for repayment of the loan amount.
3. Learned Standing Counsel appearing for the respondents opposed the petition by submitting that the overdue amount is more than Rs.2.55 lakhs and recalled amount of loan is more than Rs.10 lakhs. The respondents have already initiated action under the SARFAESI Act and notice for taking symbolic possession of the secured asset was issued on 05.02.2021. Learned counsel for the respondents further submits that if the petitioner clears the overdue amount in five instalments, the respondents may keep the action under the SARFAESI Act in abeyance.
4. Considering the facts of the instant petition and also considering the submissions made at the bar, the writ petition is disposed of with the following directions:-
The petitioner is directed to clear the overdue amount in eight equated successive monthly instalments commencing from 12.04.2021. In addition, the petitioner shall pay the EMIs regularly. If the petitioner complies with these directions, respondents shall keep the coercive action, initiated against the petitioner under the SARFAESI Act, in abeyance. In case of a single default, the respondents are at liberty to continue the action under the SARFAESI Act initiated against the petitioner. No further extension of time for compliance of this direction shall be granted to the petitioner.
