Kerala High Court
Veena Ajesh vs Federal Bank on 14 November, 2024
Author: D. K. Singh
Bench: D. K. Singh
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WP(C)No. 39461 OF 2024
2024:KER:85310
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE D. K. SINGH
THURSDAY, THE 14TH DAY OF NOVEMBER 2024 / 23RD KARTHIKA,
1946
WP(C) NO. 39461 OF 2024
PETITIONER/S:
1 VEENA AJESH
AGED 36 YEARS
W/O AJESH M M, MOOSARUKUDY HOUSE, KOTTAPPADY P.O,
KOTHAMANGALAM, ERNAKULAM, PIN - 686692
2 AJESH M.M
AGED 37 YEARS
S/O MADHAVAN, MOOSARUKUDY HOUSE, KOTTAPPADY P.O,
KOTHAMANGALAM, ERNAKULAM, PIN - 686692
BY ADV DINNY THOMAS
RESPONDENT/S:
1 FEDERAL BANK
KOTTAPPADY BRANCH, KOTTAPPADY P.O, KOTHAMANGALAM,
ERNAKULAM. REPRESENTED BY ITS BRANCH MANAGER.,
PIN - 686692
2 FEDERAL BANK VALLIKKAVU BRANCH
VALLIKKAVU, CLAPPANA P.O, KOLLAM, REPRESENTED BY
ITS BRANCH MANAGER., PIN - 690525
3 THE AUTHORIZED OFFICER
LCRD-ERNAKULAM DIVISION, FEDERAL BANK LTD,
FEDERAL TOWERS, MARINE DRIVE, ERNAKULAM, PIN -
682031
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WP(C)No. 39461 OF 2024
2024:KER:85310
BY ADVS.
P.PAULOCHAN ANTONY - sc
SREEJITH K.(K/380/2005)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 14.11.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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WP(C)No. 39461 OF 2024
2024:KER:85310
D. K. SINGH, J.
--------------------------
W.P.(C) No. 39461 of 2024
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Dated this the 14th day of November, 2024
JUDGMENT
1. The present writ petition has been filed for the following prayers;
i. a writ of certiorari or other appropriate writ or order quashing Exhibit-P2 notice as illegal and unjust. ii. a writ of mandamus or other appropriate writ or order directing the respondents to allow the petitioners to repay the overdue amounts in the 'Federal Car Loan Account No.11647400008376' in 15 equal monthly installments along with regular EMI and to regularize the loan therein, iii. a writ of mandamus or other appropriate writ or order directing the respondent bank to allow the petitioners to repay the outstanding amount in the 'Personal Loan Account No.12907600007613' in 15 equal monthly installments, iv. a writ of mandamus or other appropriate writ or order directing the respondent bank to release the 'Toyota Innova Crysta car bearing registration No. KL-44-G-8282' to the petitioners, and V) to issue such other writ or order as this Hon'ble court may deem fit and proper to grant in the circumstances of the case.
2. The petitioners have taken car loan of Rs. 22,61,326/- from the respondent Bank and personal loan of Rs. 7,50,000/-. The petitioners, however, failed to discharge the loan liability in terms 4 WP(C)No. 39461 OF 2024 2024:KER:85310 of the loan agreement and, therefore, the Bank after classifying the loan accounts of the petitioners as NPA has proceeded further under the provisions of the SARFAESI Act and the Rules made thereunder. The respondent Bank has taken possession of the car and the sale of the car is scheduled on 19.11.2024.
3. The learned Counsel for the petitioners submits that the petitioners want to discharge the loan liability. However, they would require some time as the petitioners did not have the means to discharge the outstanding liability in one go.
4. The learned Counsel for the respondent Bank on instructions submits that the Bank has already filed OA before the DRT after recalling the loan. He however submits that if the petitioners make substantial upfront payment and approaches the Bank for one time settlement/restructuring the loan/rescheduling the payment terms, the Bank shall take necessary decision on such a request of the petitioners.
5. Considering the aforesaid stand of the respondent Bank, the present writ petition is disposed of on the following terms;
(i) The petitioners shall pay Rs. 5,00,000/- on or before 18.11.2024 and, if the petitioners 5 WP(C)No. 39461 OF 2024 2024:KER:85310 make payment of Rs. 5,00,000/- on or before 18.11.2024, the sale of the vehicle shall be deferred by the Bank.
(ii) After making payment of Rs. 5,00,000/- the Bank shall handover the possession of the vehicle to the petitioners and the petitioners should approach the Bank immediately thereafter for one time settlement/restructuring the loan/rescheduling the payment terms and the Bank shall take necessary decision. If such a decision is taken, the petitioners should comply with the decision for making payment in terms of the settlement which may be arrived at between the parties.
(iii) However, if no settlement is arrived at between the parties regarding one time settlement/restructuring the loan/rescheduling the payment terms of the outstanding loan liability, the petitioners should discharge the loan liability in ten equal monthly installments 6 WP(C)No. 39461 OF 2024 2024:KER:85310 thereafter.
(iv) The first installment as directed above is to be paid on or before 15.12.2024 and the remaining nine installments on or before fifteenth day of each succeeding month.
(v) In case of failure to make payment of the first installment or any of the subsequent installments as directed above, the Bank shall be free to proceed further against the petitioners in accordance with the law to realise its outstanding dues.
Sd/-
D. K. SINGH JUDGE Svn 7 WP(C)No. 39461 OF 2024 2024:KER:85310 APPENDIX OF WP(C) 39461/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF POSSESSION NOTICE ISSUED BY 3RD RESPONDENT TO THE PETITIONERS DATED 23-09-2024 Exhibit P2 TRUE COPY OF THE SALE INTIMATION NOTICE DATED 17/10/2024 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONERS