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2018 Supreme(Online)(KER) 50092
HIGH COURT OF KERALA
ANU SIVARAMAN, J
P.K.SUGATHAN – Appellant
Versus
THE BRANCH MANAGER, PATHANAMTHITTA DISTRICT CO OPERATIVE BANK LTD. – Respondent
WP(C)/9190/2018
SRI.B.KRISHNA MANI, SRI.RAHUL VENUGOPAL, SRI.T.P.PRADEEP, SC
A borrower may be permitted to pay off loan arrears in structured installments, halting recovery actions if payments are made promptly.
Headnote:
Loan - Writ Petition - None Listed - The court directed the petitioner to repay the arrears in instalments and determined that recovery proceedings would be stayed if payments were made on time.
Fact of the Case:
A writ petition was filed seeking to quash a decision regarding loan regularization and to issue directions for payment and classification under the one-time settlement scheme.
Finding of the Court:
The court concluded that the petitioner must clear the arrears amounting to Rs.2,43,006/- in monthly instalments. It also allowed for recovery proceedings to be suspended if payments were timely.
Issues: Whether the petitioner should be allowed to pay the loan arrears in installments while halting recovery actions by the bank.
Ratio Decidendi: The court held that structured repayment in instalments is a reasonable approach, balancing the interests of the bank and the petitioner.
Final Decision: The writ petition was disposed of with directions for repayment in installments.
JUDGMENT
This writ petition is filed seeking the following reliefs:
“i. call for records leading to Exhibit P2 and quash the same by a writ of certiorari or any other appropriate writ, direction or order.
ii. issue a writ of mandamus or any other appropriate writ, order or direction directing respondent to regularize the loan account.
Iii. issue a writ of mandamus or any othr appropriate writ, order or direction directing the respondent to grant all benefits and concessions as enjoined under law including those under the one time settlement scheme.
iv. issue a writ of mandamus or any other appropriate writ, order or direction directing respondent to quantify the amounts if any due and further direct the respondent to levy 15% interest per annum; and v. issue a writ of mandamus or any other appropriate writ, order or direction directing the respondent to follow the procedure established by law for regularizing the amounts if any due.”
2. Heard learned counsel for the petitioner and the learned Standing Counsel appearing for the respondent Bank.
WP(C).9190/18 2
3. It is submitted by the learned Standing Counsel, on instructions, that the amount in arrears as on today is Rs.2,43,006/- and the term of the loan is to expire in the year 2026. It is also submitted that if the amount in arrears is paid off in six monthly instalments along with the regular instalments, the recovery proceedings pursuant to Exhibit P2 can be kept in abeyance.
In the above view of the matter, the writ petition is disposed of with the following directions:
I. The petitioner shall pay off the amount in default amounting to Rs.2,43,006/- in respect of the loan transaction in question in six equal monthly instalments commencing from 1.4.2018 and the subsequent instalments payable on or before the 1st day of the succeeding months. Along with the said instalments, the petitioner shall also pay the regular monthly instalments.
II. If the petitioner is remitting the aforesaid instalments in time without any default, all recovery proceedings pursuant to Exhibit P2 shall be kept in abeyance, so as to enable the WP(C).9190/18 3 petitioner to pay off the entire dues in monthly instalments, as above.
III. In case of any default is committed by the petitioner in remitting any one of the aforesaid instalments, it would be open to the respondent to proceed further with the coercive steps, in accordance with law.
