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2014 Supreme(Online)(KER) 6855
HIGH COURT OF KERALA
P.R.RAMACHANDRA MENON, J
ANILKUMAR S – Appellant
Versus
THE AUTHORISED OFFICER CHIEF MANAGER – Respondent
WRIT PETITION (CIVIL) 26772/2014
The court recognized the balance between debtor relief and creditor rights under the SARFAESI Act, allowing structured repayment.
Headnote:
Loan - Writ Petition - SARFAESI Act Section List - The court examined the provisions of the SARFAESI Act regarding the rights of the bank in recovering dues and allowed the petitioners to repay in installments to avoid further action by the bank.
Fact of the Case:
The petitioner took a term loan and cash credit from the bank which was not repaid as scheduled, prompting the bank to initiate recovery under the SARFAESI Act.
Finding of the Court:
The court noted the petitioners' acknowledgment of the debt and granted time for repayment in installments to prevent further legal action by the bank.
Issues: Whether the petitioners could be granted time to settle their dues under the terms proposed.
Ratio Decidendi: The court determined that allowing the petitioners to repay through structured installments was reasonable, while also emphasizing the bank's legal rights under the SARFAESI Act.
Final Decision: Writ petition disposed of with conditions for repayment.
JUDGMENT
The petitioner availed a term loan of Rs.12,00,000/-
(Rupees Twelve lakhs only) and a cash credit facility to the tune of Rs.5,00,000/- (Rupees Five lakhs only) from the respondent Bank on 26.11.2010, on the strength of the security interest created over the property in question. Since, the repayment could not be effected as scheduled, the Bank proceeded with steps under the SARFAESI Act, which made the petitioners to approach this Court by filing this writ petition.
2. The learned counsel for the petitioners submits that the petitioners do not intend to dispute the liability or the rights and liberties of the respondent Bank in proceeding with steps under the SARFAESI Act. The prayer is only to enable the petitioners to clear the entire outstanding amount, for which some breathing time is sought for.
3. The learned counsel for the Bank submits on instruction that the entire outstanding liability is nearly Rs.16,36,753/- (Rupees Sixteen lakhs thirty six thousand seven hundred and fifty three only).
4. In the said circumstances, the petitioner is directed to pay a sum of Rupees 'Two lakhs' on or before the 30th of October, 2014 and the balance by way of 'eight' monthly installments. Seven instalments shall be at the rate of Rupees 'Two lakh each' and the 8th (last) instalment shall constitute the balance amount to top up the figure to liquidate the liability. The first instalment shall be effected on or before the 30th of October, 2014, followed by the other installments, to be effected on or before the last working day of the succeeding months.
5. It is made clear that, if any default is committed with regard to the satisfaction of the due amount as above, it will be open for the respondent Bank to proceed with further steps, including by way of paper publication of the requisite notice and to proceed with appropriate steps in the relevant provisions of law.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE sp
