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2018 Supreme(Online)(KER) 6647
HIGH COURT OF KERALA
ANU SIVARAMAN, J
KRISHNAKUMAR A – Appellant
Versus
AUTHORIZED OFFICER UNDER SARFAESI ACT – Respondent
WRIT PETITION (CIVIL) 15426/2018
The court established the principle that debtors may negotiate repayment terms under the enforcement provisions, provided they meet the necessary conditions.
Headnote:
Loan - Writ Petition - Security Interest (Enforcement) Rules, 2002 - 8
Fact of the Case:
The petitioner filed a writ petition seeking to set aside a notice issued under the Security Interest (Enforcement) Rules, and to regularize their loan account by settling overdue amounts in installments.
Finding of the Court:
The court directed the respondents to allow the petitioner to pay the overdue amount in ten monthly installments while maintaining current payments, contingent upon timely remittance to stay recovery proceedings.
Issues: Whether the petitioner could be granted the opportunity to pay overdue loan amounts in installments, and the implications of defaulting on such payments.
Ratio Decidendi: The court held that allowing the petitioner to repay in installments would facilitate debt resolution while maintaining the lender's right to recover in case of default.
Final Decision: The writ petition is disposed of allowing repayment of overdue amounts in installments.
JUDGMENT
1.This writ petition is filed with following prayers:-
“(I) To set aside P1 notice issued by the 2nd respondent under Rule 8 (1) of the Security Interest (Enforcement) Rules, 2002 .
(ii)To issue a writ of mandamus directing the respondents 1 and 2 to regularise the loan account by accepting the arrears/overdue amount in monthly installments as fixed by this Hon'ble Court, (iii) To issue a writ of mandamus directing respondents 1 and 2 to permit the petitioners to discharge the entire liability in monthly installments as fixed by this Hon'ble Court.”
2.Heard the learned counsel for the petitioner and the learned standing counsel appearing for the respondents-Bank.
3.It is submitted by the learned standing Counsel, on instructions that an amount of Rs.3,19,178/- is over due, which requires to be regularized in the loan account. It is also submitted that the loan is current as a term upto 2020. The learned counsel for the petitioner seeks to pay off the above amount in installments.
4.In the above view of the matter, there will be a direction to the respondents to permit the petitioner to pay the defaulted amount of Rs.3,19,178/- in ten equal monthly installments along with the normal installments due.
5. This writ petition is disposed of with the following directions :-
(i) The petitioner shall pay off the amount in default amounting to Rs.3,19,178/- in respect of the loan transaction in question, in ten equal monthly instalments. 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 Exts.P1 shall be kept in abeyance, so as to enable the petitioner to pay off the entire dues in monthly instalments, as above.
(iii)In case of any default committed by the petitioner in remitting any one of the aforesaid instalments, it would be open to the respondents to proceed further with the coercive steps, in accordance with law.
