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2019 Supreme(Online)(KER) 74113
HIGH COURT OF KERALA
Devan Ramachandran, J
UDAYAN C.V., – Appellant
Versus
THE AUTHORISED OFFICER, THRISSUR DISTRICT CO-OPERATIVE BANK LTD, – Respondent
WP(C)/6975/2019
SRI.SUSHANTH.J
Procedural compliance is essential for accessing relief under government provisions, necessitating direct action with the relevant financial institution.
Headnote:
Moratorium - Flood Impact - Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act - Section on Debtor Rights - The court highlighted the necessity of the petitioner to approach the Bank for moratorium benefits, ensuring due process under the relevant provisions of the Act.
Fact of the Case:
The petitioner claimed severe impact from recent floods and sought a moratorium on loan repayments by appealing to the Minister for Agriculture rather than directly to the Bank.
Issues: Whether the petitioner can seek a court-directed remedy without first presenting his case to the Bank regarding the moratorium benefits.
Ratio Decidendi: The court established that addressing the Bank was a necessary precursor to any court intervention, reinforcing procedural compliance in seeking benefits under the moratorium.
Final Decision: The court directed the petitioner to approach the Bank for relief, deferring any Bank action under the SARFAESI Act until then.
J U D G M E N T
The petitioner claims that he and his family have been severely impacted by recent flood that devastated our State. He says that he, therefore, approached the Hon'ble Minister for Agriculture through Ext.P2 representation, seeking the benefits of the moratorium in repayment of loans availed of by flood affected persons, as per the applicable Government orders. He prays that the said representation be directed to be disposed of and that the respondent - Bank be directed not to take any further action until this exercise is over.
2. Even though I hear Sri.Sushanth J, the learned counsel appearing for the petitioner, on the afore lines, the fact remains that Ext.P2 request has been preferred before the Hon'ble Minister and not before the respondent – Bank. If the petitioner requires the benefit of the moratorium, as declared by the Government of Kerala, he should have certainly approached the Bank; particularly, because I am told by its learned standing counsel, Sri.P.C.Sasidharan,that the overdue amounts in two loans availed of by him and his wife are as high as Rs.15,12,863/- as on 11.03.2019.
3. At this time, the learned counsel for the petitioner submitted that his client will approach the Bank immediately with a representation seeking the benefits of the moratorium and prayed that this writ petition be ordered on such terms. 4. In the afore circumstances, I direct the petitioner to approach the respondent - Bank with a proper application/representation detailing all his requests and claims, within a period of one week from the date of receipt of a copy of this judgment; in which event, the competent among the respondents will consider the same, after affording an opportunity of being heard to the petitioner and communicate the resultant order to him, as early as is possible but not later than one week thereafter.
5. Needless to say, until such time as the afore exercise is completed, all action being pursued by the Bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act ('the SARFAESI Act' for brevity) shall stand deferred.
This writ petition is thus ordered.
Sd/-
DEVAN RAMACHANDRAN rp JUDGE APPENDIX PETITIONER'S/S EXHIBITS:
EXHIBIT P1 COPY OF THE NOTICE DATED 20.02.2019.
EXHIBIT P2 COPY OF THE MEMORANDUM OF REQUEST DATED
01.03.2019 BEFORE THE HONOURABLE MINISTER FOR AGRICULTURE.
EXHIBIT P3 COPY OF PASS BOOK PERTAINING TO LOAN ACCOUNT NO.80008910095.
EXHIBIT P4 COPY OF K-VAT CHALLAN DATED 30.7.2016.
