Niya Soman vs Kerala State Co Operative Bank Ltd

Sathish Ninan, J.

Repayment of the credit facility availed by the petitioner from the respondent Bank was defaulted. The loan was availed with the brother of the petitioner as a co-obligant. Unfortunately he met with an accident and passed away in the year 2017. The younger sister of the petitioner got diagnosed with Kidney disease and is advised for kidney transplantation. The petitioner is in grave financial constraints which resulted in default in the loan account. The petitioner seeks for an opportunity to have the loan account in question regularised.

Heard the learned counsel for the petitioner and the learned standing counsel for the Bank.

The learned standing counsel for the Bank submits that further term is available for the facility in question and that an opportunity for regularisation could be granted provided the interests of the Bank is not affected.

Considering the facts and circumstances as noticed first above, including the financial constraints projected and the quantum of amount involved, I am of the opinion that an opportunity can be granted to have the loan account regularised.

Accordingly, the writ petition is disposed of with the following directions:

1) Petitioner shall be permitted to have the loan account regularised on payment of the entire overdue amount, with interest and costs, in eight equal monthly instalments commencing from 20.06.2022.

2) Subsequent instalments shall be payable on or before the 20th day of the subsequent months.

3) The instalments as above shall be in addition to the regular EMIs payable in the loan account.

4) In case of default in payment of a single instalment, the petitioner will lose the benefit granted under this judgment and further proceedings for recovery can go on.