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2024 Supreme(Online)(KER) 29410
HIGH COURT OF KERALA
Shoba Annamma Eapen, J
RAJANI – Appellant
Versus
STATE OF KERALA – Respondent
WP(C) 15934/2024
The court recognized the principle of allowing debtors to repay outstanding amounts in instalments, promoting fairness in debt recovery processes.
Headnote:
Recovery - Petitioners' Default - Revenue Recovery Act Section 36 - The court granted the petitioners an opportunity to repay their outstanding debt in instalments, while interpreting provisions related to recovery and installment-based repayment opportunities for debtors.
Fact of the Case:
The petitioners defaulted on a chitty repayment to KSFE, resulting in recovery proceedings initiated against them under the Revenue Recovery Act. They sought an opportunity to repay in instalments.
Finding of the Court:
The court determined that the petitioners could repay the outstanding amount in twelve monthly instalments, taking into account the prevailing circumstances and the willingness of KSFE to accept a structured repayment.
Issues: Whether the petitioners should be granted an opportunity to repay their outstanding debt in instalments rather than facing immediate coercive recovery actions.
Ratio Decidendi: The court highlighted the relevance of giving debtors a chance to repay overdue amounts in manageable instalments, thus ensuring a fair approach in debt recovery processes.
Final Decision: The court disposed of the writ petition, allowing repayment in twelve instalments while suspending immediate recovery actions.
The petitioners availed chitty from the Westhill branch of Kerala State Finacial Enterprises (hereinafter referred to as ‘the KSFE’). On committing default in repayment, the 3rd respondent initiated recovery proceedings against the petitioner. Aggrieved by the issuance of notice under Section 36 of the Revenue Recovery Act , the petitioners have approached this Court with the above writ petition.
2. During the course of hearing, the petitioners have confined the relief to an opportunity for repaying the outstanding amount in instalments.
3. Learned Standing Counsel appearing for the KSFE would submit that the petitioners committed default in repayment and the outstanding amount, as on 30.04.2024 is Rs.9,80,156/- (Rupees Nine lakhs eighty thousand one hundred and fifty six only). It was further submitted that the KSFE is willing to accept repayment of the outstanding amount in limited instalments.
WP(C) NO. 15934 OF 2024 3
4. I have heard the learned counsel for the petitioners and the learned Standing Counsel for the KSFE.
5. Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioners can be granted an opportunity to repay the outstanding amount in twelve equated monthly instalments.
Accordingly, there will be a direction to the KSFE to accept repayment of the entire outstanding amount of Rs.9,80,156/- (Rupees Nine lakhs eighty thousand one hundred and fifty six only) along with any accrued interest and charges from the petitioners on the following conditions:
- (i) The petitioners are directed to repay the outstanding amount of Rs.9,80,156/- (Rupees Nine lakhs eighty thousand one hundred and fifty six only) in twelve equated monthly instalments along with any accrued interest/costs;
- WP(C) NO. 15934 OF 2024 4 (ii) The first of such instalment shall be paid on or before 15.05.2024 and the subsequent instalments shall be paid on or before the 15th day of succeeding months;
- (iii) In the event of default of any one instalment, the respondent shall be entitled to proceed in accordance with law.
- (iv) In order to enable the petitioners to repay the entire amounts, all coercive proceedings shall be kept in abeyance.
- The writ petition is disposed of, as above.
