Sara Beevi M vs Pathanapuram Primary Co Operative Agricultural And Rural Development Bank Ltd

Gopinath P., J

Petitioners availed four different loans from the 1st respondent bank. While they have been regular in paying instalments in respect of two of the loans, they have committed default in repayment of the instalments in respect of the other two loans. On proceedings being initiated under the provisions of the Kerala State Co-operative Agricultural and Rural Development Bank Act, 1984, petitioners have approached this Court by filing the instant writ petition.

Learned counsel appearing for the 1st respondent bank refers to the counter affidavit filed in the writ petition wherein Paragraph No.(2), it is stated as follows:-

2) .All the averments and allegations contained in the writ petition are denied except those that are specifically admitted hereunder. Petitioners are 'A' and 'B' class members of the 1st respondent bearing membership No.15631 and 11955 respectively, applied for four loans, 'three agricultural loans' and a 'housing loan’.

i. Loan account bearing LDS794/2018, for an amount of Rs.1 lakh disbursed in two equal installments on 15-11 -2018 and 10-12-2018. Interest rate was 11.85% and period of loan is 10 years. Now in respect of above loan account, outstanding as on 17.05.2023 is nil.

ii. Loan account bearing No.HSF920/2018, for an amount of Rs.2 lakhs disbursed in two equal installments on 15-11-2018 and 10-12 -2018. Agreed rate of interest of 11.85% and term of loan period was 10 years. . Now in respect of above loan account, outstanding as on 17.05.2023 is nil.

iii. Loan account bearing No.HHBS 13/2020, agricultural loan for an amount of Rs.4 lakhs disbursed in two equal installments on 22.05.2020 and 27.05.2020 and interest rate agreed was 7.75% and term of loan is seven years. Now in respect of above loan account, outstanding as on 17.05.2023 is Rs.1,90,520/-.

iv. Loan account, Housing Loan bearing No.NRHS 389/2018, for an amount of Rs.5 lakhs disbursed in three installments, Rs.2 lakhs on 15.11.2018, Rs.2 lakhs on 10.12.2018 and Rs.1 lakh on 20.12.2018. Interest rate agreed was 12.1% and term of loan was 7 years. Now in respect of above loan account, outstanding as on 17.05.2023 is Rs.3,48,208/-.

Total outstanding in respect of four loans is Rs.5,38,728/-.

Learned counsel appearing for the petitioners would submit that in respect of the loan account bearing No.HHBS 13/2020 and in respect of the loan account bearing No. NRHS 389/2018 the total default is stated to be Rs.5,38,728/- (Rupees Five lakhs thirty eight thousand seven hundred and twenty eight only) as on 17.05.2023. They pray that they may be permitted to clear the amount in some instalmens.

Learned counsel appearing for the respondent bank submits that the respondent bank has no objection in permitting the petitioners to clear the overdue amount in the two loan accounts mentioned above in some reasonable instalments provided the petitioners continue to service all the loans, on due dates, without fail.

Having heard the learned counsel appearing for the petitioners and the learned counsel appearing for the respondent bank, I am of the view that the petitioners can be granted an opportunity to repay the total overdue amount of Rs.5,38,728/- (Rupees Five lakhs thirty eight thousand seven hundred and twenty eight only) in respect of loan account bearing  Nos.No.HHBS  13/2020  and NRHS  389/2018 in fifteen equal monthly instalmetns commencing from 12.06.2023.

Accordingly, there will be a direction to the respondent bank to accept repayment of the overdue amount of Rs.5,38,728/- (Rupees Five lakhs thirty eight thousand seven hundred and twenty eight only) along with accrued interest and bank charges from the petitioners in the following manner:

(i) The overdue amount of Rs.5,38,728/- (Rupees Five lakhs thirty eight thousand seven hundred and twenty eight only) in respect of loan account bearing Nos.No.HHBS 13/2020 and NRHS 389/2018 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)Petitioner shall also pay the regular EMIs in respect of all the four loans as mentioned in paragraph No.2 of the counter affidavit, which has been extracted above, without fail;

(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 petitioners to repay the entire amounts as above, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.