Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH MONDAY, THE 18TH DAY OF MARCH 2024 / 28TH PHALGUNA, 1945 WP(C) NO. 10579 OF 2024
PETITIONERS:
1 NOUSHAD AGED 48 YEARS RESIDING AT KANNIPOYIL HOUSE,PUNNASSERY P.O.KAKKUR VILLAGE,KOZHIKODE DISTRICT, PIN - 673613 2 JASEELA AGED 42 YEARS RESIDING AT KANNIPOYIL HOUSE PUNNASSERY.P.O.KAKKUR VILLAGE,KOZHIKODE DISTRICT, PIN - 673613 BY ADVS.
B.DIPU SACH DEEV ARUN BABU ANEESHRAJ R.
RESPONDENTS:
1 THE BRANCH MANAGER KERALA STATE CO OPERATIVE BANK LTD,NARIKKUNI BRANCH,NARIKKUNI P.O.KOZHIKODE, PIN - 673585 2 AUTHORISED OFFICER KERALA STATE CO OPERATIVE BANK,RECOVERY SECTION, P.B NO.503,KALLAI ROAD P.OCHALAPURAM,KOZHIKODE DISTRICT, PIN - 673002 3 RECOVERY AND LEGAL OFFICER KERALA BANK,RECOVERY AND LEGAL DEPARTMENT ,REGIONAL OFFICE,P.B NO.503 KALLAI ROADP.OCHALAPURAM ,KOZHIKODE, PIN - 673002 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C) No.10579 of 2024 -:2:- JUDGMENT Dated this the 18th day of March, 2024
The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Kerala State Co-operative Bank to the petitioners, invoking the Provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002.
2.
The Bank paid ₹ 25,00,000/- to the petitioners as Commercial Loan in the year 2018. The petitioners state that though the petitioners made remittances promptly during the initial repayment period of the financial advance, they could not pay the repayment instalments promptly later. The repayment of loan fell into arrears later. It happened due to reasons beyond the control of the petitioners.
3.
Though the petitioners requested the Bank to permit the petitioners to repay the overdue amounts in easy monthly instalments, the Bank authorities were not yielding. The
W.P.(C) No.10579 of 2024 -:3:- authorities, instead, started coercive proceedings, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 and the Security Interest (Enforcement) Rules, 2002 and issued Ext.P2 notice.
4.
The petitioners state that they are still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioners, they will be put to untold hardship and loss.
5.
Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioners. On behalf of the respondents, it is submitted that the loan was given to the petitioners in the year 2018. The petitioners committed default in repaying the loan.
6.
The Bank repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the Bank had no other
W.P.(C) No.10579 of 2024 -:4:- go, than to proceed against the petitioners invoking, the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002. The impugned Ext.P2 was issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
7.
The Standing Counsel, however, submitted that if the petitioners are ready and willing to make a substantial payment soon and remit the balance overdue immediately thereafter, a short breathing time can be granted to the petitioners to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioners as on 18.03.2024 is ₹ 35,38,476/- and the overdue amount as on 29.02.2024 is ₹ 19,11,532/-.
8.
I have heard the counsel for the petitioners and the Standing Counsel representing the Bank.
9.
The specific case of the petitioners is that the petitioners have been making the repayment and maintaining the loan account initially. The default in repayment occurred lately
W.P.(C) No.10579 of 2024 -:5:- due to reasons beyond the control of the petitioners. The petitioners have provided substantial security which will safeguard the interest of the Bank.
10.
In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioners to clear off their liability.
11.
The writ petition is therefore disposed of with the following directions:
(i) The petitioners shall remit an amount of ₹ 5,00,000/- on or before 27.03.2024.
(ii) The petitioners shall remit the balance overdue amount in subsequent consecutive twelve equal monthly instalments thereafter, along with accruing interest and other Bank charges, if any.
(iii) If the petitioners commits default in making payments as directed above, the
W.P.(C) No.10579 of 2024 -:6:- respondents will be at liberty to continue with coercive proceedings against the petitioners in accordance with law.
(iv) The petitioners shall also pay current EMIs along with the aforesaid payments.
(v) If the petitioners pay the instalments as directed above, any coercive proceedings against the petitioners shall stand deferred.
Sd/-N.NAGARESH JUDGE lsn
W.P.(C) No.10579 of 2024 -:7:- APPENDIX OF WP(C) 10579/2024 PETITIONER EXHIBITS Exhibit P1 THE COPY OF THE FORM GST REG-06 DATED 17/07/2018 Exhibit P2 THE COPY OF THE NOTICE ISSUED BY THE C.M.P.NO. 260 OF 2024 BY THE ADVOCATE COMMISSIONER RESPONDENTS EXHIBITS: NIL TRUE COPY P.A TO JUDGE LSN