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2016 Supreme(Online)(KER) 25492
HIGH COURT OF KERALA
A.M.SHAFFIQUE, J
LIJI KRISHNAN – Appellant
Versus
ALOCIOUS – Respondent
WRIT PETITION (CIVIL) 18172/2016
The SARFAESI Act allows for negotiation of overdue payments while preserving the bank's recovery rights upon default.
Headnote:
SARFAESI - Housing Loan - SARFAESI Act - Sections 13(2) - The court permitted the petitioner to pay overdue loan amounts in installments while reaffirming the bank's right to recover dues under the SARFAESI Act.
Fact of the Case:
The petitioner, unable to meet housing loan repayments due to her husband's absence abroad, faced action under the SARFAESI Act. The bank issued a notice for the overdue repayment totaling ₹3,33,324.
Finding of the Court:
The court acknowledged the petitioner's willingness to pay the overdue amount and decided to allow payment in installments while ensuring the bank retains recovery rights in case of default.
Issues: Whether the petitioner can be allowed to pay the overdue amount in installments instead of a lump sum as demanded by the bank.
Ratio Decidendi: The court balanced the petitioner's financial difficulties against the bank's right to recover dues, allowing for installment payments while reserving the bank's right to take legal action for defaults.
Final Decision: The petitioner shall pay the overdue amount in 15 installments, along with regular monthly payments.
J U D G M E N T
The petitioner has approached this court being faced with proceedings under the SARFAESI Act. The petitioner is the wife of the third respondent. The petitioner's husband is abroad. He had taken a housing loan which is repayable at the rate of ₹15,000/- per month for a period of 12 years starting from 22.1.2014. The petitioner was unable to pay the instalments in time. In the meantime, proceedings had been taken by the respondent Bank under Section 13(2) of the SARFAESI Act by issuance of a notice calling upon the petitioner to pay the entire amount.
2. The learned counsel for the petitioner submits that the petitioner is ready and willing to pay the overdue amount on granting some instalments and the petitioner is ready and willing to pay the monthly instalments as well.
3. The learned counsel for the respondent Bank submits that the overdue amount will come to ₹3,33,324/-.
4. Having regard to the aforesaid factual situation, I am of the view that this writ petition can be disposed of as under:
(1) That the petitioner shall remit the overdue amount of ₹3,33,324/- in 15 equal monthly instalments starting from
01.07.2016.
(2) In addition to the payment of the aforesaid amount, the petitioner shall also pay the regular monthly instalments as per agreed terms.
(3) If there is default in payment of any of the instalments, it shall be open for the respondent bank to take appropriate proceedings in accordance with law.
