Rajeev C.B. vs. Authorized Officer
Original PDF →Facts
The petitioner, Rajeev C.B., a borrower from Axis Bank Ltd., defaulted on loan repayments. The bank initiated recovery proceedings. The petitioner sought an opportunity to repay the overdue amount in instalments to regularise his loan account. The respondent bank confirmed the overdue amount was Rs. 3,36,128/- and expressed willingness to accept repayment in instalments as a matter of indulgence. The petitioner confined his relief to this specific request.
Held
The Court held that the petitioner should be granted an opportunity to repay the overdue amount in instalments. The reasoning was based on the circumstances of the case and the submissions made by both parties. The Court directed the respondent bank to accept the repayment of the entire overdue amount of Rs. 3,36,128/- along with bank charges and regularise the loan account. This was to be done in eight equated monthly instalments, with the first instalment due by 30.10.2021. The petitioner was also required to continue paying regular EMIs. The Court stipulated that in case of default in any instalment, the bank could proceed as per law. All coercive proceedings were to be kept in abeyance to enable the petitioner to make the repayments.
Key Issues
1. Whether the petitioner should be granted an opportunity to repay the overdue loan amount in instalments? Petitioner's argument: The petitioner sought an opportunity to regularise his loan account by repaying the overdue amount in instalments. Respondent's argument: The respondent bank, while initiating recovery, indicated willingness to accept repayment in instalments as a gesture of indulgence.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT Petitioner as borrower from the respondent bank, has committed default in repayment. Consequently, proceedings have been initiated by the bank for recovery of the amounts due.
During the course of hearing, petitioner has confined the relief to an opportunity for repaying the overdue amount in instalments and to obtain regularisation of the loan account.
It was submitted on behalf of the respondent bank that the petitioner committed default in repayment and the overdue amount is Rs.3,36,128/-. It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the overdue amount in limited instalments and regularise the loan account.
I have heard Adv.Preeja V.P., learned counsel for the petitioner as well as Adv.Saju N.A., the learned counsel for the respondents.
Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the overdue amount in eight instalments and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.
Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.3,36,128/- along with bank charges from the petitioner and regularise the loan account of the petitioner on the following conditions: (i) The overdue amount of Rs.3,36,128/- shall be repaid in eight equated monthly instalments. (ii) The first instalment shall be paid on or before 30.10.2021. (iii) Petitioner shall continue to pay the regular EMI’s along with the instalments directed above. (iv) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law. (v) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance. The writ petition is disposed of as above. BECHU KURIAN THOMAS JUDGE vps
Appendix — schedule of exhibits
Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.