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2017 Supreme(Online)(KER) 26638
HIGH COURT OF KERALA
A. K. Jayasankaran Nambiar, J
SABITHA RAICHEL – Appellant
Versus
AXIS BANK LIMITED Advocate - SREEKALA KRISHNADAS ,SREEKALA KRISHNADAS – Respondent
WRIT PETITION (CIVIL) 30431/2017
Repayment conditions under the SARFAESI Act can be subject to court flexibility based on financial hardship.
Headnote:
SARFAESI - Loan Default - SARFAESI Act - Sections Referenced: None Specified - The court directed the petitioner to repay overdue loan in installments, granting reprieve from recovery actions, emphasizing the necessity to comply with repayment terms.
Fact of the Case:
The petitioner defaulted on a loan from the respondent bank, which initiated recovery proceedings under the SARFAESI Act.
Issues: Whether the petitioner could remit overdue loan amounts in installments, preventing further recovery actions by the bank.
Ratio Decidendi: The court considered the financial hardship of the petitioner in allowing installment payments while suspending bank recovery actions.
Final Decision: Petitioner allowed to repay loan in installments, with conditions set for non-default.
J U D G M E N T
The petitioner, who had availed a loan from the respondent bank, defaulted in repayment of the same. Consequently, the respondent bank initiated proceedings under the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest Act, 2002, hereinafter referred to as the 'SARFAESI Act', to recover the loan amounts. Ext.P1 is the possession notice. In the writ petition, the petitioner impugns the steps initiated by the respondent bank for recovery of the loan amounts.
2. I have heard the learned counsel appearing for the petitioner as also the learned Standing counsel appearing for the respondent bank.
3. On a consideration of the facts and circumstances of the case and the submissions made across the bar, I note that the sole prayer of the petitioner is to permit her to remit the balance amounts outstanding to the respondent bank in easy installments. Taking into account the plea of financial hardship raised by the petitioner, I dispose the writ petition with the following directions:-
(i) The overdue amount, in respect of the loan availed by the petitioner, is stated to be Rs.9,63,202/-. Accordingly, if the petitioner pays the said amount of Rs.9,63,202/- together with accrued interest and other charges in 12 equal and successive monthly installments commencing from 13.11.2017, and continues to keep up the regular installment payments as per the original loan schedule, then the further proceedings initiated against her by the respondent bank shall be kept in abeyance.
(ii) It is further made clear that if the petitioner commits a default in respect of any of the installments, she will lose the benefit of this judgment and the respondent bank will be free to continue the recovery proceedings against her from the stage at which they presently stand.
(iii) The respondent bank shall furnish the petitioner with an up-to-date statement, of the dues position together with interest, within ten days from today so as to enable the petitioner to discharge the liability in accordance with the directions in this judgment.
