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2017 Supreme(Online)(KER) 45429
HIGH COURT OF KERALA
K VINOD CHANDRAN, J
S SUDHEERDAS – Appellant
Versus
THE AUTHORISED OFFICER – Respondent
WRIT PETITION (CIVIL) 18321/2017
Willingness to repay debts can influence court decisions to permit flexible payment arrangements under financial distress circumstances.
Headnote:
Indulgence - SARFAESI Act - Section Not Specified - The court granted indulgence to a borrower, allowing repayment of overdue amounts in installments, emphasizing the significance of willingness to pay and regularization of accounts upon compliance.
Fact of the Case:
The petitioner, facing proceedings under the SARFAESI Act due to non-repayment of loan installments, sought relief, indicating willingness to pay the outstanding dues in installments.
Finding of the Court:
The court acknowledged the petitioner's willingness to repay and determined that some flexibility should be afforded, permitting installment payments while imposing certain conditions on recovery actions.
Issues: Whether the court should grant the petitioner relief by allowing repayment of overdue loans in installments under the SARFAESI Act framework.
Ratio Decidendi: The court held that a borrower's readiness to repay, alongside a structured repayment plan, warranted a stay on recovery actions, aligning with principles of fairness and justice.
Final Decision: The court disposed of the writ petition, granting the petitioner relief in the form of a structured repayment plan.
J U D G M E N T
Petitioner has approached this Court being faced with proceedings initiated by the respondent Bank under the SARFAESI Act.
2. Petitioner had availed credit facilities from the respondent Bank. He could not repay the monthly installments in the loan in time on account of certain financial difficulties. The learned Counsel for the petitioner submits that the petitioner is ready and willing to pay the outstanding dues in installments and will also pay the regular monthly installments, if some time is granted.
3. According to the respondent Bank the overdue amounts would come to Rs.42,65,000/- as on today.
W.P.(C)No.18321/2017
4. Having regard to the fact that the petitioner has expressed willingness to repay the amount in installments, I am of the view that some indulgence can be shown to the petitioner and the following directions are issued.
(i) The petitioner shall pay the overdue amount of Rs.42,65,000/- in twelve equal monthly installments starting from 10.07.2017 and continued on the 10th of every succeeding month, with regular payment of EMIs on the due dates and the accrued interest in every three months.
(iii) Recovery shall be stayed on the installments being regularly paid and on two defaults, it shall be resumed. If the arrears are paid up and so are the EMIs satisfied, then the account shall be regularised as per the original agreement.
The writ petition would stand disposed of. No cost.
