Saneesh P.A vs Kerala State Cooperative Bank

Sathish Ninan, J

The petitioner availed a credit facility from the respondent Bank. Repayment of the loan was defaulted, pursuant to which Ext.P2 demand notice

was issued by the bank. It is at that stage the petitioner has approached this Court.

Heard the learned counsel for the petitioner and the learned Standing Counsel for the Bank.

The learned Standing Counsel for the Bank points out that the term of the loan expires only in the year 2028. As on 20.12.2021, an amount of

Rs.7,12,993/- is overdue in the loan account. Proceedings have also been initiated under the provisions of the SARFAESI Act, he further points out.

The learned counsel for the petitioner submits that the petitioner is in great financial constraints and that a reasonable opportunity may be granted to

have the overdue amounts repaid in instalments and to have the account regularised. The Bank is not averse to such a course of action provided there

is bonafides on the part of the petitioner, submits the learned Standing Counsel.

Taking into consideration the circumstances pointed out by the petitioner, I am of the opinion that an opportunity could be afforded to the petitioner

to have the loan account regularised on conditions.

Accordingly the writ petition is disposed of as hereunder:-

1) The petitioner is permitted to pay the entire overdues in the loan account, including interest and costs, in ten equal monthly instalments commencing

from 02.02.2022.

2) The subsequent instalments shall be payable on or before the 5th day of the succeeding months.

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

4) In the event of default in payment of either of the instalments as above, the petitioner will lose the benefit granted under this judgment and further

proceedings for recovery can go on.