Radhakrishnan Mullath vs. Union Of INDIA
Held
The High Court directed the petitioners to repay the entire outstanding loan amount of Rs. 5.46 Crores in eight equal monthly instalments, commencing from July 21, 2021. Compliance would lead to the bank keeping its SARFAESI Act recovery actions in abeyance, with a single default allowing the bank to resume coercive measures without further extensions.
Facts
Petitioners, who had obtained overdraft and term loans from Canara Bank, defaulted on payments due to the Covid-19 pandemic. With an outstanding liability of over Rs. 5.46 Crores, the bank initiated recovery proceedings by issuing a notice under Section 13(2) of the SARFAESI Act. The petitioners sought to repay the entire loan in eight monthly instalments.
Key Issues
The key legal issue was whether the petitioners, who defaulted on bank loans due to the pandemic, could be granted an opportunity to repay the outstanding amount in instalments, thereby staying coercive action initiated by the bank under the SARFAESI Act.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR MONDAY, THE 21ST DAY OF JUNE 2021 / 31ST JYAISHTA, 1943 WP(C) NO. 12041 OF 2021 PETITIONER/S: 1 RADHAKRISHNAN MULLATH, AGED 71 YEARS S/O KANANGATH RADHAKRISHNA MENON, MULLATH HOUSE, KARIKKAD P.O., THRISSUR DISTRICT-680 519. 2 SANDHEEP RADHAKRISHNA MENON,AGED 43 YEARS S/O RADHAKRISHNAN MULLATH, MULLATH HOUSE, KARIKKAD P.O., THRISSUR DISTRICT-680 519. 3 DILEEP RADHAKRISHNA MENON, AGED 30 YEARS S/O RADHAKRISHNAN MULLATH, MULLATH HOUSE, KARIKKAD P.O., THRISSUR DISTRICT-680 519. 4 DEEPAK RADHAKRISHNA MENON, AGED 33 YEARS S/O RADHAKRISHNAN MULLATH, MULLATH HOUSE, KARIKKAD P.O.THRISSUR DISTRICT-680 519. 5 ODUMPULLY SYAMALA DEVI, AGED 63 YEARS W/O RADHAKRISHNAN MULLATH, MULLATH HOUSE, KARIKKAD P.O.THRISSUR DISTRICT-680 519. BY ADVS. V.JOHN MANI S.JAYANT JACKSON JOHNY VARGHESE SABU SETHULAKSHMI K.K. GAYATHRI MENON XAVIER THOMAS V.T. RESPONDENT/S: 1 UNION OF INDIA, REPRESENTED BY SECRETARY, DEPARTMENT OF FINANCIAL SERVICES, MINISTRY OF FINANCES, 3RD FLOOR, JEEVAN DEEP BUILDING, SUNSAD MARG, NEW DELHI-110 001. WP(C) NO. 12041 OF 2021 2 2 THE CHIEF MANAGER CANARA BANK. KUNNAMKULAM BR
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