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2022 Supreme(Online)(KER) 62538
HIGH COURT OF KERALA
GOPINATH P, J
KRISHNAKUMAR VARMA – Appellant
Versus
IDBI BANK LTD. – Respondent
WP(C)/38556/2022
S.MUMTAZ, ALISHA ASLAM, AJITH M., JIJI AMINA, RUBY FAIZAL, DEVAPRASANTH.P.J., SUJESH KUMAR K P, ADV. K P SUJESH KUMAR (SC)
The court established that opportunities for debtors to repay loans in instalments can be granted, considering both the lender's statutory rights and equitable relief.
Headnote:
Securitisation - Kisan Credit Card - SARFAESI Act - Section 13 - The court allowed the petitioner to repay the loan amount in instalments, interpreting the provisions of the SARFAESI Act concerning recovery procedures and considering the petitioner's request for relief due to financial circumstances.
Fact of the Case:
The petitioner challenged recovery proceedings initiated under the SARFAESI Act for a Kisan Credit Card loan, seeking to repay the outstanding amount in instalments.
Finding of the Court:
The court found merit in the petitioner's request for an opportunity to repay the loan amount in instalments, considering both the default and the bank's willingness to accommodate.
Issues: Whether the petitioner should be allowed to repay the outstanding loan amount in instalments despite being in default.
Ratio Decidendi: The court's decision emphasized the importance of providing a debtor with an opportunity to satisfy their obligations under fair conditions, balancing the lender's rights and the debtor's needs.
Final Decision: The writ petition was disposed of, allowing repayment in ten instalments.
JUDGMENT
Dated this the 30th day of November, 2022 Petitioner has approached this Court challenging proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as the SARFAESI Act) for recovery of the amounts due upon a Kisan Credit Card (KCC) loan availed by the petitioner.
2. During the course of hearing, petitioner has confined the relief to an opportunity for repaying the outstanding amount in instalments.
3. It was submitted on behalf of the respondent bank that the petitioner committed default in repayment and the outstanding amount is Rs.8,11,000/-. It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the outstanding amount in limited instalments.
4. I have heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondent.
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 petitioner can be granted an opportunity to repay the outstanding amount in ten (10)
instalments.
6. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.8,11,000/- along with bank charges from the petitioner on the following conditions:
(i) The outstanding amount of Rs.8,11,000/-
together with any accrued interest/costs shall be repaid in ten (10) equated monthly instalments;
(ii) The first instalment shall be paid on or before
15.12.2022 and subsequent instalments shall be paid on or before 15th day of every succeeding month;
(iii) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law;
(iv) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.
The writ petition is disposed of as above.
Sd/-
GOPINATH P.
JUDGE
APPENDIX OF WP(C) 38556/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE OF POSSESSION DATED
20/08/2022 AFFIXED BY THE RESPONDENT BANK Exhibit P2 TRUE COPY OF THE REQUEST LETTER DATED 13/09/2022 SUBMITTED BY THE PETITIONER TO THE RESPONDENT RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE
