Madhukumar. S. vs Thiruvananthapuram Co Operative Agricultural And Rural Development Bank Ltd. No. T.170

Gopinath P., J

Petitioner availed a loan from the respondent bank. On default being committed, proceedings were initiated against the petitioner under the provisions of the Kerala State Co-operative Agricultural and Rural Development Bank Act, 1984, leading to the issuance of Ext.P1 notice. This prompted the petitioner to approach this Court by filing the above writ petition.

Learned counsel appearing for the petitioner would submit that the petitioner could not repay the loan on account of financial stringency. It is submitted that the amount of Rs.1,00,000/- directed to be paid as a condition for the interim order dated 27.02.2023 has already been paid. It is submitted that the petitioner may be permitted to clear the balance liability in some instalments.

Learned counsel appearing for the respondent bank would submit that, as on 14.03.2023, the outstanding amount due from the petitioner, is Rs.14,88,853/- (Rupees Fourteen lakhs eighty eight thousand eight hundred and fifty three only), after giving credit to the amount already paid by the petitioner. It is submitted that the petitioner will also be liable for future interest  and  costs.It  is  submitted  that  the  while  the respondent bank has no objection in granting some limited instalments to the petitioner, the number of instalments may be limited to ten.

Learned counsel appearing for the petitioner would submit that considering the amount involved, petitioner may be permitted to clear the liability in fifteen instalments.

Having regard to the circumstances of the case and the situation now prevailing, I am of the view that the petitioner can be granted an opportunity to repay the entire liability in fifteen equated monthly instalments.

Accordingly, there will be a direction to the respondent bank to accept repayment of the outstanding amount of Rs.14,88,853/- (Rupees Fourteen lakhs eighty eight thousand eight hundred and fifty three only) along with accrued interest and bank charges from the petitioner in the following manner:

(i) The outstanding amount of Rs.14,88,853/- (Rupees Fourteen lakhs eighty eight thousand eight hundred and fifty three only) shall be repaid in fifteen equated monthly instalments along with any accrued interest/costs;

(ii) The first instalment shall be paid on or before 12.06.2023 and the subsequent instalments shall be paid on or before the 12th day of the succeeding months;

(iii) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law;

(iv) In order to enable the petitioner to repay the entire amounts as above, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.