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2017 Supreme(Online)(KER) 35915
HIGH COURT OF KERALA
K VINOD CHANDRAN, J
BINCY ROSHAN – Appellant
Versus
STATE BANK OF TRAVANCORE – Respondent
WRIT PETITION (CIVIL) 6398/2017
The court established that a repayment plan can provide relief in financial hardship, contingent upon timely payments.
Headnote:
Finance - Petitioner Financial Obligations - No Specific Act Section List - The court directed the petitioner to pay outstanding arrears in instalments while staying recovery proceedings. It emphasized compliance with payment schedules to regularise the account and avoid further actions by the bank.
Fact of the Case:
The petitioner failed to pay a significant amount owed, and the scheduled sale could not occur due to a lack of bidders. A substantial outstanding balance remained, prompting the petitioner to seek a manageable repayment plan.
Finding of the Court:
The court recognized the petitioner's financial difficulties and allowed an instalment plan for arrears. It stipulated conditions for recovery proceedings dependent on compliance with payments.
Issues: Whether the petitioner could be granted relief from immediate recovery proceedings and allowed to repay outstanding dues in instalments.
Ratio Decidendi: The court found that granting a structured repayment plan served justice, considering the petitioner's financial situation, while holding the petitioner accountable for future payments.
Final Decision: The writ petition is disposed of with specific directions for payment in instalments.
JUDGMENT
The petitioner was granted an order at the time of admission, directing the confirmation to be stayed on condition of the petitioner remitting Rupees ten lakhs. Both the learned Counsel submit that the sale which was scheduled on 28.02.2017 could not be carried out for reason of there being no bidders. In such circumstance, the petitioner has also not paid the amounts undertaken to be paid.
2. As on 03.03.2017, the total outstanding in the account comes to Rs.26,39,626/- and the defaulted arrears would come to Rs.4,96,638/-. The petitioner undertakes to pay the defaulted arrears in six monthly instalments.
3. Considering the facts and the impecunious circumstances pleaded by the petitioner, it is directed that Rs.4,96,638/- [Rupees four lakhs, ninety six thousand, six hundred and thirty eight only] shall be paid in six monthly instalments, starting on 27.04.2017 and repeated on every 27th of five succeeding months, with regular Equated Monthly Instalments paid in the respective months. Recovery proceedings shall be kept in abeyance on condition that the remittances as per this order are made without any default, along with regular EMIs on the respective due dates. On the petitioner satisfying the entire arrears as also the regular EMIs, the petitioner shall be permitted to regularise the account and pay it up on EMIs as per the original agreement. If a single default is committed during the instalment period granted by this Court, respondent-Bank shall proceed with the recovery proceedings initiated. The respondent-Bank shall also be entitled to demand future interest, in every three months, which shall be paid along with the next instalment directed to be paid as per this Court's order. It is also made clear that the above order shall be in foce only if the petitioner satisfies the EMI for the month of March, 2017 on or before
30.03.2017.
The writ petition is disposed of as above.
