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2018 Supreme(Online)(KER) 10111
HIGH COURT OF KERALA
ANIL K. NARENDRAN, J
INDIRA L. – Appellant
Versus
TRIVANDRUM CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK – Respondent
WP(C)/22664/2018
SRI.V.N.GOPALAKRISHNAN NAIR, SRI.A.CHANDRA BABU, SRI.G.VARUN, SRI.ARUN GOPALAKRISHNAN, SRI.SUMAN CHAKRAVARTHY
The court emphasized the importance of allowing debtors reasonable opportunities to repay loans without immediate threat of foreclosure.
Headnote:
Loan - Writ Petition - Constitution of India, Article 226 - Summary of court's directions for repayment of loan.
Fact of the Case:
The petitioner sought to halt sale procedures on mortgaged property until a specified date while proposing to repay a loan in installments.
Finding of the Court:
The court accepted the bank's willingness to allow loan repayment in installments and devised a plan for the petitioner to do so while staying recovery actions.
Issues: Whether the petitioner should be allowed to repay her loan obligations in installments while delaying recovery proceedings.
Ratio Decidendi: The court's decision hinged on balancing the petitioner's need to repay while protecting the bank's interests in recovering the loan amount.
Final Decision: The petitioner is to repay in ten installments or face recovery actions.
J U D G M E N T
The petitioner, who availed loan from the 1st respondent Bank for a sum of Rs.10 lakhs in the year 2013, by mortgaging her property having an extent of 12.14 Ares, mentioned in Ext.P1 sale notice, has filed this writ petition under Article 226 of the Constitution of India , seeking a writ of mandamus commanding the respondents to keep the procedure in Ext.P1 sale notice in abeyance till 31.8.2019 and to allow her to close the entire transaction on or before that date, thereby imposing any condition this Court may deem fit and proper. The petitioner has also sought for stay of all further proceedings pursuant to Ext.P1 notice till final disposal of this writ petition.
2. Heard the learned counsel for the petitioner and also the learned counsel for the 1st respondent Co-operative Bank.
3. Learned counsel for the petitioner would submit that the petitioner is prepared to pay off the entire liability in respect of the loan transaction in question in monthly installments, :-2-:
together with future interest.
4. Learned counsel for the 1st respondent Bank would submit that the total liability as on 6.7.2018 in respect of the loan account in question comes to Rs.18,41,916/- and that the 1st respondent Bank has no objection in this Court granting a reasonable opportunity to the petitioner to pay off the entire dues in monthly installments.
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 liability in respect of the loan transaction in question amounting to Rs.18,41,916/-, together with future interest from 6.7.2018, in ten equal monthly installments, commencing from 01.08.2018 and the subsequent installments payable on or before the first day of the succeeding months.
(ii) If the petitioner is remitting the aforesaid installments in time, without any default, all recovery proceedings pursuant to Ext.P3 sale notice shall be kept in abeyance, so as to enable the petitioner to pay off the entire dues, as directed above.
(iii) In case of any default committed by the petitioner in remitting any one of the aforesaid installments, it would be :-3-:
open to the 2nd respondent to proceed further with the coercive steps initiated against the petitioner.
