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2018 Supreme(Online)(KER) 46991
HIGH COURT OF KERALA
ANIL K. NARENDRAN, J
SABU. P. THOMAS – Appellant
Versus
THE CHANGANASSERY TALUK CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD K-119 – Respondent
WP(C)/23552/2018
SRI.K.SHAJ, SRI.RENJIT GEORGE, SRI.V.N.SASIDHARAN, SR.GOVERNMENT PLEADER SMT.C.S.SHEEJA
A borrower can seek installment payments for overdue loan amounts, and courts can stay recovery actions upon compliance.
Headnote:
Loan - Writ Petition - Article 226 - Sale Notice, Installments - The court directed the petitioner to pay overdue loan amounts in installments, ensuring temporary relief from recovery actions contingent on compliance.
Fact of the Case:
The petitioner sought to quash a sale notice issued by the bank after defaulting on a loan, requesting to pay the overdue amount in installments instead.
Issues: Whether the petitioner could be permitted to pay overdue amounts in installments and sought relief from recovery proceedings.
Ratio Decidendi: The court held that allowing payment in installments can prevent undue hardship on the borrower, balancing the interests of both parties.
Final Decision: The petition was disposed of with directives for installment payments to the bank.
J U D G M E N T
The petitioner, who availed a loan from the 1st respondent Bank after mortgaging property having an extent of 4.05 Ares in Re-Survey No.265/1/6 of Kangazha Village in Changanacherry Taluk by registering 'Gahan', has filed this writ petition under Article 226 of the Constitution of India , seeking a writ of certiorari to quash Ext.P1 sale notice dated 08.06.2018 issued by the 2nd respondent Special Sale Officer and seeking a writ of mandamus commanding the 1st respondent Bank to allow him to pay off the amount demanded in Ext.P1 notice in installments. The petitioner has also sought for other consequential reliefs.
2. Heard the learned counsel for the petitioner, the learned Standing Counsel for the 1st respondent Bank and also the learned Senior Government Pleader appearing for the 2nd respondent Special Sale Officer.
3. The learned counsel for the petitioner would submit that the petitioner is prepared to pay off the entire amount demanded in Ext.P1 together with interest and other charges, within a reasonable time, for which, he requires installment facility.
4. The learned counsel for the 1st respondent Bank would submit that the total liability as on 08.07.2018 in respect of the loan transaction :-2-:
in question comes to ₹11,20,455/- and the total overdue amount comes to ₹4,87,586/-. It is also submitted that if the petitioner is prepared to pay off the overdue amount in monthly installments, within a reasonable time, along with regular monthly installments, the 1st respondent Bank shall regularise the loan account.
Having considered the submissions made by the learned counsel on both sides, this writ petition is disposed of with the following directions :
i) The petitioner shall pay off the entire overdue amount as on 08.07.2018 in respect of the loan transaction in question, amounting to ₹4,87,586/- together with interest, in eight equal monthly installments commencing from 25.08.2018 and the subsequent installments payable on or before the 25th day of the succeeding months. Along with the said installments, the petitioner shall also pay the regular monthly installments.
ii) If the petitioner is remitting the aforesaid installments in time, without any default, all recovery proceedings pursuant to Ext.P1 sale notice shall be kept in abeyance, so as to enable the petitioner to pay off the amount as above.
iii) In case of any default committed by the petitioner :-3-:
in remitting any one of the aforesaid installments, it would be open to the respondents to proceed further with the coercive steps.
