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2016 Supreme(Online)(KER) 1980
HIGH COURT OF KERALA
SHAJI P.CHALY, J
SALEENA SULAIMAN – Appellant
Versus
THE SPECIAL SALE OFFICER – Respondent
WRIT PETITION (CIVIL) 22154/2016
The court established the discretion to permit installment repayment in agricultural loan defaults to accommodate borrowers facing hardship.
Headnote:
Loan - Agricultural Loan Repayment - Writ Petition - Court's Decision on Installments - Summary of Legal Provisions
Fact of the Case:
The petitioner’s husband took an agricultural loan and defaulted due to crop failure, prompting the bank to initiate sale proceedings, which the petitioner challenged.
Issues: Whether the petitioner can be allowed to repay the outstanding loan in installments given the bank's actions.
Ratio Decidendi: The court determined that allowing payment in installments serves justice while balancing the lender's rights.
Final Decision: The writ petition is disposed of, allowing repayment in ten monthly installments.
J U D G M E N T
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The petitioner's husband has availed an agricultural loan from the second respondent bank in connection with the developmental activities of the land owned by the petitioner extending to 11.08 Ares in Mundakkayam Village in Kanjirappally Taluk. According to the petitioner, the repayments could not be effected due to crop failure. Admittedly on failure on the part of the petitioner, second respondent bank has initiated action evident from Ext.P2. It is thus challenging Ext.P2 sale notice, petitioner has approached this court.
2. Heard learned counsel for the petitioner and learned standing counsel appearing for the second respondent bank and perused the pleadings and documents. Learned counsel for the petitioner reiterated the contentions raised in the writ petition.
W.P.(C)NO.22154 OF 2016 2 However, offered to pay the amounts outstanding in equated monthly installments. Learned counsel for the second respondent bank submitted that since a huge amount of Rs.24,65,586/- (Rupees twenty four lakhs sixty five thousand five hundred and eighty six only) is remaining outstanding, petitioner may be directed to pay the same in five installments.
3. Having considered the rival submissions made across the bar and the fact situations, I am satisfied that petitioner can be permitted to pay the loan amount in ten equated monthly installments starting from 05.08.2016 and on the same date of successive months. Therefore, there will be a direction accordingly. Needless to say, if any of the installments is defaulted by the petitioner, the benefit provided to the petitioner by way of installments will seize and the bank will be at liberty to proceed in terms of the sale conducted by the bank in its favour. In order to enable the petitioner to proceed to pay the amount in equated monthly installments, bank shall provide a statement of W.P.(C)NO.22154 OF 2016 3 accounts to the petitioner as on 30.06.2016, within two weeks from today.
Writ petition is disposed of accordingly.
