Shamla A vs The Kerala State Co Operative Bank (Kerala Bank) Represented By Its Authorised Officer And Area Manager

D. K.Singh, J

The present Writ Petition has been filed seeking the following prayers:

a. To issue a Writ of Mandamus or any other appropriate writ, order or direction commanding the respondents to grant the petitioner a reasonable time to remit the interest and principle due in the loan account in instalments and regularise the same as Regular Account and to continue to pay the monthly instalments.

b. Any  other  appropriate  writ,  order  or  direction,  this Hon’ble Court may deem fit on the facts and in the circumstances of the case and allow this petition with all costs.

The petitioner had availed an ordinary loan of Rs.8,00,000/- from the respondent bank in 2018. The said loan liability has to be discharged along with interest up to 2028 in 120 equal monthly instlaments. The petitioner has defaulted in repaying the loan taken from the respondent bank. Therefore, the bank, after classifying the petitioner’s loan account as NPA, has proceeded under the provisions of the SARFAESI Act and Rules made thereunder. The possession of the secured asset is fixed on 05.11.2024. At this stage, the petitioner has approached this Court by filing the present writ petition.

The learned counsel for the bank submits that if the petitioner makes payment of substantial amount upfront and the remaining overdue amount in few instalments, along with the regular instalments, the bank shall regularize the loan account of the petitioner. As of today, the overdue amount is Rs.9,46,844/- and the total outstanding amount is Rs.16,45,044/-.

Considering the said stand of the learned counsel for the bank, the present writ petition is disposed of in the following terms:

i. The petitioner shall pay an upfront amount of Rs.1,00,000/- along with one regular instalment on or before 05.11.2024 and the remaining overdue amount in 12 equal monthly instalments, along with the regular instalments. The 1st instalment is to be paid on or before 15.12.2024, and the remaining 11 instalments on or before the 15th day of each succeeding month.

ii. Once the petitioner pays the entire overdue amount, the bank shall regularize the loan account of the petitioner.

iii. In case of failure to make payment of Rs.1,00,000/- or any subsequent instalments as directed above, the bank shall be free to proceed further against the petitioner for realizing the outstanding loan amount.

With the aforesaid directions, the present writ petition stands finally disposed of.