Praveen.K.David vs Kerala State Co Operative Bank Ltd

Gopinath P., J

Petitioner has approached this Court challenging proceedings initiated by the respondent Bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, for recovery of the amounts due from the petitioner.

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.7,85,787/- (Rupees seven lakhs eighty five thousand seven hundred and eighty seven only) as on 14.07.2022. 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 the learned counsel for the petitioner as well as the learned counsel for the respondent.

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 fifteen 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.7,85,787/- (Rupees seven lakhs eighty five thousand seven hundred and eighty seven only) along with bank charges from the petitioner and regularise the loan account of the petitioner in the following manner:-

(i) The overdue amount of Rs.7,85,787/- (Rupees seven lakhs eighty five thousand seven hundred and eighty seven only) along with any accrued interest and charges shall be repaid in fifteen equated monthly instalments;

(ii)The first instalment shall be paid on or before 05.08.2022 and the subsequent instalments shall be paid on or before the 5th day of each succeeding month;

(iii)Petitioner shall continue to pay the regular EMI’s/instalments along with the instalments directed above;

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

(vi) 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.