Back
2021 Supreme(Online)(KER) 7774
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH TUESDAY, THE 1ST DAY OF JUNE 2021/11TH JYAISHTA, 1943 WP(C) NO. 11620 OF 2021 PETITIONERS:
0 1 M.S.JAYACHANDRAN, AGED 48, S/O.SIVASANKARA PILLA, MUKALUVILA KIZHAKETHIL (H), KAKKAKUNNU P.O., SOORANADU SOUTH, KOLLAM.
2 INDIRA BHAI AMMA, AGED 78, W/O.SIVASANKARA PILLA, MUKALUVILA KIZHAKETHIL (H), KAKKAKUNNU P.O., SOORANADU SOUTH, KOLLAM.
3 KAVITHA A.G., AGED 45, W/O.JAYACHANDRAN, MUKALUVILA KIZHAKETHIL (H), KAKKAKUNNU P.O., SOORANADU SOUTH, KOLLAM.
BY ADVS.
K.R.VINOD M.S.LETHA K.S.SREEREKHA K.V.ARUN KUMAR T.S.JIBU RESPONDENTS:
0 1 CATHOLIC SYRIAN BANK LTD., REPRESENTED BY ITS BRANCH MANAGER, PUTHIYAKAVU BRANCH, KARUNAGAPALLY, KOLLAM PIN 690 518.
2 THE AUTHORIZED OFFICER, CATHOLIC SYRIAN BANK LTD., SOUTH KERALA ZONAL OFFICE, MALANKARA BUILDING COMPLEX, PALAYAM, THIRUVANANTHAPURAM 695 034.
BY ADV.SRI.C.A. JOY, SC FOR R1-R2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.06.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
['K R VINOD', '', 'M S LETHA', 'K S SREEREKHA', 'K V ARUN KUMAR', 'T S JIBU']
J U D G M E N T
~ ~ ~ ~ ~ ~ ~ ~ ~
Dated this the 1st day of June, 2021 The petitioners have filed this writ petition seeking to direct the respondents to permit the petitioners to pay the amount of interest in arrears payable by them on the cash `
credit facility, amounting to 12,02,810/- by 20 monthly instalments and to regularise and restore the cash credit facility.
2. The 1st petitioner availed cash credit facility of ` 75,00,000/- from the 1st respondent-Bank. Petitioners 2 and 3 stood as guarantors to the facility. According to the 1st petitioner, due to Covid-19 pandemic in the year 2020, the business had to be closed down and the 1st petitioner could not make prompt payments.
3. According to the petitioners, the overdue interest is ` 12,02,810/- and the 1st petitioner can pay the outstanding interest in 20 monthly instalments. However, without giving the petitioners sufficient time to clear the overdues, the respondents have issued Ext.P2 notice threatening that coercive proceedings will be taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. Hence, the petitioners are before this Court.
4. The Standing Counsel representing respondents
1 and 2, on instructions, submitted that the writ petition is not maintainable. Huge amounts are in arrears from the 1st petitioner towards cash credit facility extended to him and in spite of repeated reminders, the 1st petitioner has not paid the outstanding arrears. In case this Court grants the petitioners time to repay in instalments, 20 monthly instalments cannot be granted to the petitioners and only a short breathing time may be extended.
5. Heard the learned counsel for the petitioners and the learned Standing Counsel representing respondents 1 and 2.
6. The outstanding interest due from the 1st `
petitioner would be around 13 lakhs. As the interest happened to accrue and fall due in the cash credit facility due to the pandemic situation, this Court is of the considered opinion that a breathing time should be given to the petitioners to clear the overdue interest in reasonable monthly instalments.
In the circumstances, the writ petition is disposed of permitting the petitioners to pay the accrued interest in eight equal monthly instalments. The petitioners shall remit the first instalment on or before 01.07.2021. If the petitioners make two consecutive defaults in paying monthly instalments as permitted above, the respondents will be at liberty to proceed against the petitioners in accordance with law. Sd/-
N. NAGARESH, JUDGE aks/02.06.2021 APPENDIX EXHIBIT P1 THE COPY OF THE STATEMENT OF ACCOUNT ISSUED BY THE 1ST RESPONDENT BANK DURING THE PERIOD 22.04.2020 TILL
30.04.2021.
EXHIBIT P2 THE COPY OF THE NOTICE DATED
05.05.2021 ISSUED BY THE 2ND RESPONDENT U/S.13(2) OF THE SARFAESI ACT.
