IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN THURSDAY, THE 29^TH DAY OF AUGUST 2024 / 7TH BHADRA, 1946 WP(C) NO. 29195 OF 2022 PETITIONER:

RADHIKA V ELAYATH AGED 42 YEARS KARUTHAMASSERY ILLOM WEST KADUNGALLOOR PO ALUVA, PIN -

683110 BY ADV MANU GOVIND RESPONDENTS:

1 THE STATE BANK OF INDIA OTTAPALAM BRANCH, OTTAPALAM TALUK, PALAKKAD DISTRICT -

679513, REPRESENTED BY ITS MANAGER., PIN - 679513

2 THE MANAGER STATE BANK OF INDIA, OTTAPALAM BRANCH, OTTAPALAM TALUK, PALAKKAD DISTRICT 679513, PIN - 679513

3 THE ASSISTANT GENERAL MANAGER STATE BANK OF INDIA, OPP NSS KPT HIGH SCHOOL TB ROAD, OTTAPALAM BRANCH PALAKKAD 679101, PIN - 679101 BY ADVS.

GEORGE THOMAS (MEVADA)(SR.)

AMAL GEORGE BY ADV. SRI. AMAL GEORGE SC FOR SBI.

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 29.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT

Dated this the 29^th day of August, 2024 The petitioner’s husband had availed a housing loan from the 1^st respondent bank. The loan was linked to an insurance policy of the SBI Life Insurance. As per the terms of the loan sanction letter, the petitioner’s husband was bound to pay the insurance premium along with the EMI. The petitioner’s husband died on 19.09.2021, while he was working in South Africa. After her husband's death, the petitioner submitted Ext.P3, requesting the respondents to initiate the process for settling the SBI home loan by adjusting the amount due under the SBI Life Insurance. The request was rejected by Ext. P4, on the premise that South Africa is a ‘Declined Country’. This was reiterated by the bank in Ext.P7 communication also. As a result, the housing loan fell in arrears and the bank initiated recovery measures. Hence, this writ petition.

2. Learned Counsel for the petitioner submitted that South Africa is not a declined Country, even as per Ext.P8 guidelines issued by the SBI Life Insurance. 3. The learned standing counsel for the respondents submitted that the premium paid towards the insurance policy was adjusted towards the loan and the loan having been defaulted, the Bank had to initiate action for recovery.

4. As rightly pointed out by the learned Counsel for the petitioner, South Africa does not figure in the list of declined Countries published by the SBI Life Insurance. However, in the counter afÏdavit, the respondents have also stated as under;

“On first enquiry, it was intimated that South Africa, the country of residence and employment of Late A N Chitrabhanu, was a declined country. Therefore, the proposal for the Home Loan Insurance Cover was not submitted to SBI Life Insurance Company.”

It is thus evident that South Africa is not a declined Country. Being so, the remittances made towards premium ought to have been duly credited towards the insurance coverage.

As the petitioner’s request for such adjustment of arrears due towards the loan account with the insurance coverage was rejected on a wrong premise that, South Africa is a declined Country, the writ petition is disposed of, by quashing Exts.P4, P7 and P10 and directing the 1^st respondent to reconsider Ext.P3 request and take a reasoned decision thereon. Till a decision is taken and communicated, no recovery measures shall be taken against the petitioner and her assets.

Sd/-

V.G.ARUN JUDGE NB/29-8 APPENDIX OF WP(C) 29195/2022 PETITIONER EXHIBITS EXHIBIT P1 COPY OF THE ARRANGEMENT LETTER DATED 06.06.2016 SANCTIONING THE LOAN EXHIBIT P2 COPY OF THE HOME LOAN ACCOUNT STATEMENTS SHOWING REGULAR REMITTANCE FROM 17.06.2016 TO

31.03.2022 EXHIBIT P3 COPY OF EMAIL DATED 09.09.2021 FROM THE PETITIONER TO THE RESPONDENT EXHIBIT P4 COPY OF THE EMAIL DATED 09.10.2021 FROM THE RESPONDENT TO THE PETITIONER EXHIBIT P5 COPY OF THE LETTER DATED 07.08.2022 FROM THE PETITIONER TO THE RESPONDENT EXHIBIT P6 COPY OF THE TRACKING DETAILS RECORDING DELIVERY OF EXHIBIT P5 LETTER EXHIBIT P7 COPY OF THE LETTER NO. SBI/RASMEC/OTP DATED

24.08.2022 EXHIBIT P8 COPY OF LIST APPLICABLE TO NRI AND INTERNATIONAL TR