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2024 Supreme(Online)(KER) 8390
HIGH COURT OF KERALA
Devan Ramachandran, J
VITHAL BOSE – Appellant
Versus
KERALA STATE CO-OPERATIVE BANK LTD. (KERALA BANK) – Respondent
WP(C) 21842/2024
The court emphasized the need for balance between creditor rights and debtor circumstances, allowing temporary relief from recovery actions.
Headnote:
Loan - Writ Petition - N/A - The court allowed the petitioner a three-month period to settle the loan liability with the respondent-Bank, prohibiting coercive action during this time while establishing conditions for potential recovery if payment was not made.
Fact of the Case:
The petitioner requested a three-month period to settle his loan with the respondent-Bank, citing attempts to sell property for payment. The Bank agreed to the time frame to allow settlement.
Finding of the Court:
The court ruled in favor of the petitioner, allowing him three months to pay the outstanding loan without coercive actions from the Bank during this period and clarified the consequences of non-compliance.
Issues: Whether the petitioner should be granted a three-month period to settle his loan liability without coercive recovery actions from the Bank.
Ratio Decidendi: The court determined that allowing time for repayment was reasonable and aligned with the principles of fairness, considering the petitioner's circumstances and the Bank's consent.
Final Decision: The court allowed the petition and directed a three-month period for repayment without coercive action.
The limited plea of the petitioner in this Writ Petition is that the respondent-Bank be directed to permit him to settle the loan liability availed of from them in three months. He explains that he is trying to sell a property and that once he is able to do that, he will be pay off the entire loan liability and settle the loan account.
2. In response to the afore submissions of Sri.M.Shyju – learned counsel for the petitioner, Smt.K.Amminikutty - learned Standing Counsel for the respondent–Bank, submitted that, if the petitioner is willing to pay off the entire liability within the afore time frame – either in lump sum or in installments – her client will not stand in the way of appropriate orders being issued; but prayed that thereafter, her client be given liberty to proceed against the property as per law. She added that the total outstanding in the loan account, as on 31.05.2024, comes to Rs.68,34,130/-, along with all applicable charges and interest. In the afore circumstances and with the consent of both sides, I allow this Writ Petition and direct the respondent-Bank not WPC 21842/24 to pursue any coercive recovery action against the petitioner for a period of three months from the date of receipt of a copy of this judgment; within which time, he will be at liberty to pay off the afore loan liability, along with all applicable charges and interest, either in lump sum or in installments. It goes without saying that, if the amounts as afore are paid by the petitioner, the account will stand closed and the Bank will return to him all title documents as are necessary; but, if on the contrary, he defaults payment, the benefit of this judgment will be lost to him and the Bank will be at full liberty to continue with recovery action from the stage at which it is available today, subject to any further rights of the petitioner, without having to obtain further orders from this Court.
