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2017 Supreme(Online)(KER) 32581
HIGH COURT OF KERALA
K VINOD CHANDRAN, J
SREEKUMAR H – Appellant
Versus
CANANRA BANK – Respondent
WRIT PETITION (CIVIL) 5734/2017
Compliance with bank terms for loan recovery is essential to avoid proceedings against mortgaged properties.
Headnote:
Recovery - Mortgage Loan - W.P.(C) No.5734/2017 - The court upheld the bank's right to resume recovery proceedings upon the petitioner's default on multiple loans, emphasizing compliance with payment conditions to regularize the accounts.
Fact of the Case:
The petitioner contested the recovery proceedings against their mortgaged property, claiming mortgage and multiple loan defaults totaling various amounts, with the bank proposing a regularization plan contingent on full payment by a specified date.
Issues: Whether the petitioner can avoid recovery proceedings by complying with the bank's payment terms for overdue loans.
Ratio Decidendi: The court ruled that failing to meet the bank's payment schedule legitimizes the bank's recovery actions, reinforcing contractual obligations related to loan defaults.
Final Decision: The writ petition is disposed of with obligations set for the petitioner to regularize the loans.
J U D G M E N T
The petitioner is aggrieved with the recovery proceedings taken against the petitioner's property, mortgaged to the respondent Bank.
2. The learned Standing Counsel appearing for the respondent Bank submits that there are five loans availed by the petitioner, all of which have been defaulted. In the mortgage loan, the defaulted arrears is Rs.2,94,676/-, in the vehicle loan Rs.2,83,988/-, in the agricultural term loan Rs. 55,313/- and in the business loan Rs.17,494/-. It is submitted that the accounts can be regularised, on the payment of the entire defaulted amounts.
W.P.(C)No.5734/2017
2. Hence if the entire arrears as noticed above is paid on or before 31.03.2017, the respective accounts shall be regularised, on the further condition that the regular EMIs falling due on February and March, 2017 also shall be paid before 31.03.2017 along with arrears. If such amounts are paid, then the mortgage loan, vehicle loan, agricultural term loan and business loan shall be regularised.
3. On payment of the entire amounts as indicated above, the petitioner shall be issued with a demand for any future interest, which shall be satisfied before 30.04.2017. If any default is committed, then the respondent Bank shall resume the recovery proceedings. On payment of the entire dues as indicated above, the recovery proceedings shall be kept in abeyance.
4. It is also submitted that there was a further loan, which is an over drawing facility granted, which cannot be W.P.(C)No.5734/2017 regularised and the total amounts due is Rs.67,777/-. Insofar as the over drawing facility is concerned, the same has to be cleared fully on or before 31.03.2017. It is made clear that on default in any of the directions as above, the recovery shall be resumed.
The writ petition is disposed of.
Sd/-
K. VINOD CHANDRAN, JUDGE SB/23/02/2017 // true copy //
P.A to Judge The amount shown as “Rs.17,494/-” occurring in the
6th line of paragraph 2 of the judgment dated 23.02.2017 in W.P (C) No.5734/2017 is corrected and substituted as “Rs.70,494/-” as per order dated 21.03.2017 in I.A No.4757/2017 in W.P.(C)
No.5734/2017.
