Kerala High Court

WP(C)/12995/2025 of SALIM S., Vs THE AUTHORIZED OFFICER, on 1 April 2025

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IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 1ST DAY OF APRIL 2025 / 11TH CHAITHRA, 1947 WP(C) NO. 12995 OF 2025 PETITIONER: SALIM S., AGED 60 YEARS, S/O. SULAIMAN RAWUTHER, BUNGLAVIL VEEDU, PADINJATTA KIZHAKKU, SOORANADU NORTH,

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT

THE HONOURABLE MR. JUSTICE GOPINATH P.

TUESDAY, THE 1ST DAY OF APRIL 2025 / 11TH CHAITHRA, 1947

WP(C) NO. 12995 OF 2025

PETITIONER:

SALIM S.,

AGED 60 YEARS, S/O. SULAIMAN RAWUTHER,

BUNGLAVIL VEEDU, PADINJATTA KIZHAKKU,

SOORANADU NORTH, SOORANADU P.O., KOLLAM DISTRICT, PIN – 690 522.

BY ADVS.

BINU GEORGE

HEMALATHA

AVANI P.S.

RESPONDENTS:

THE AUTHORIZED OFFICER,

LCRD, MAVELIKKARA DIVISION,

THE FEDERAL BANK LTD., PUTHIYAKAVU, MAVELIKKARA, ALAPPUZHA DISTRICT, PIN – 690 101.

THE BRANCH MANAGER,

THE FEDERAL BANK LTD., BHARANIKKAVU BRANCH, TAJ MAHAL BUILDING, BHARANIKKAVU, KOLLAM DISTRICT, PIN – 690 503.

BY ADVS.

P.PAULOCHAN ANTONY (SC)

SREEJITH K.

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR

ADMISSION ON 01.04.2025, THE COURT ON THE SAME DAY

DELIVERED THE FOLLOWING:

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JUDGMENT

Petitioner availed two separate loans namely, a cash credit facility and a term loan from the respondent bank. On default being committed proceedings have been initiated under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for recovery of the amounts due in respect of the aforesaid two loans, prompting the petitioner to approach this Court by filing the above writ petition.

2. The learned counsel for the respondent bank submits that the tenure of the term loan is not yet over and the overdue amount, as on 28-03-2025, is Rs.66,841/-. It is submitted that the tenure of the cash credit facility is over and therefore the entire outstanding amount will have to be remitted by the petitioner. It is submitted that the outstanding amount, as on 28-03-2025, is Rs.45,70,534/-.

3. The learned counsel appearing for the petitioner would submit that the petitioner may be permitted to clear the liabilities in installments.

4. Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount in respect of the cash credit facility and the overdue amount in respect of the term loan in installments.

5. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.45,70,534/- due in respect of the cash credit facility along with accrued interest, costs and bank charges from the petitioner in installments and also to accept the overdue amount of Rs.66,841/- in respect of the term loan along with regular EMI’s/installments and accrued interests, costs and bank charges from the petitioner in the following manner:-

i. The petitioner shall pay an amount of Rs.4,00,000/- (Rupees Four Lakh Only) towards the outstanding amount in the cash credit facility on or before 30-04-2025. The balance outstanding amount together with any accrued interest, costs and bank charges shall be repaid in 12 equated monthly installments. The first installment shall be paid on or before 31-05-2025. The subsequent installments shall be paid on or before the last working day of every succeeding months;

ii. The total overdue amount of Rs.66,841/- in respect of the term loan along with accrued interest, costs and bank charges shall be repaid in three (03) equated monthly installments. The first installment shall be paid on or before 30-04-2025. The subsequent installments shall be paid on or before the last working day of every succeeding months. Petitioner shall also continue to pay the regular EMI’s/installments on due dates without fail; iii.In the event of default of any one installment, the respondent bank shall be entitled to proceed in accordance with the law; iv.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.

Sd/- GOPINATH P. JUDGE ats

APPENDIX OF WP(C) 12995/2025 PETITIONER’S EXHIBITS Exhibit P1 A TRUE COPY OF CONTRACTORS REGISTRATION CARD BEARING NO. BSC/35/2013-14 OF PETITIONER Exhibit P2 A TRUE COPY OF RELEVANT PAGES OF STATEMENT OF ACCOUNT OF PETITIONER WITH RESPONDENT BANK Exhibit P3 A TRUE COPY OF NOTICE DATED 23.10.2024 UNDER SECTION 13(2) OF SARFAESI ACT Exhibit P4 A TRUE COPY OF POSSESSION NOTICE DATED 19.02.2025 ISSUED BY THE RESPONDENT BANK

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