WP(C)/12886/2025 of JOHNSON, Vs THE AUTHORISED OFFICER, KERALA STATE CO OPERATIVE BANK & DISTRICT CO OPERATIVE BANK (KERALA BANK) on 28 March 2025

JUDGMENT

The petitioner has approached this Court challenging proceedings under the SARFAESI Act which have been initiated by the respondent Bank for recovery of the amounts due from the petitioner.

2. 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 accounts.

3. It is submitted on behalf of the respondent Bank that the petitioner committed default in repayment of an ordinary loan and the overdue amount as on 27.03.2025 is Rs.17,33,982/-(Rupees seventeen lakhs thirty three thousand nine hundred and eightytwo only). It is 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 accounts.

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 total overdue amount on condition that a sum of Rs.1,00,000/- (Rupees one lakh only) shall be paid on or before 05.04.2025 and the balance amount along with any accrued interest, costs and charges shall be paid in 15 equal monthly instalments, the first of which shall be paid on or before 05.05.2025 and the subsequent instalments shall be paid on or before the 5th day of every succeeding months and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan accounts regularised.

5. Accordingly, there will be a direction to the respondent Bank to accept repayment of the entire overdue amount of Rs.17,33,982/- (Rupees seventeen lakhs thirtythree thousand nine hundred and eightytwo only) along with any accrued interest, costs and charges from the petitioner and regularise the loan accounts of the petitioner in the following manner:- i. The petitioner shall pay a sum of Rs.1,00,000/- (Rupees one lakh only) on or before 05.04.2025. The balance overdue amount along with any accrued interest, costs and charges shall be paid in 15 equal monthly instalments; ii. The first instalment shall be paid on or before 05.05.2025 and the subsequent instalments shall be paid on or before the 5th day of every succeeding month; iii. Petitioner shall continue to pay the regular EMI’s / instalments along with the instalments directed above; iv. In the event of default of any one instalment, the respondent Bank shall be entitled to proceed in accordance with the law; v. In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance. Considering the fact that considerably liberal instalments have been granted to the petitioner, it is made clear that no further application for an extension of time is entertained in these circumstances. The writ petition is disposed of as above.

Sd/-GOPINATH P. JUDGE

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APPENDIX OF WP(C) 12886/2025

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DATED 06-03-2025