Sathyan. K vs Kerala Gramin Bank

C.S Dias, J

The writ petition is filed to direct the respondents 1 and 2 to permit the petitioner to pay off the outstanding amount in equated monthly instalments.

The petitioner’s case is that his daughter had availed an educational loan from the first respondent – Bank. The petitioner’s father was the guarantor of the loan. He had created an equitable mortgage in favour of the first respondent. The petitioner’s father died. The petitioner had inherited the property that was offered as collateral security. Due to reasons beyond her control, the petitioner’s daughter could not pay the instalments on time. The Bank initiated proceedings against the secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (in short, ‘Act’). As the petitioner is the present owner of the property, she is ready and willing to pay the outstanding amount in equated monthly instalments. Hence, the writ petition.

Heard;  Smt.M.Shajna,  the  learned  counsel appearing for the petitioner, Sri.Jawahar Jose, the learned counsel appearing for the respondents 1 and 2 and the learned Government Pleader appearing for the respondents 3 and 4.

Sri.Jawahar Jose, on instructions, submitted that as on 24.5.2023, the outstanding amount is Rs.2,92,689/-. Taking the writ petition as a special case, the first respondent- Bank – is amenable to permit the petitioner to pay the outstanding amount in ten equated monthly instalments. The said submission is recorded.

The learned counsel appearing for the petitioner submitted that the petitioner may be granted at least twelve instalments to pay the outstanding amount taking into account his precarious financial conditions.

Having considered the pleadings and materials on record, the submissions made by the learned counsel appearing for the parties, the consensus arrived at between the parties and to provide the petitioner one last opportunity to clear off the liability, I am inclined to exercise the powers of this Court under Article 226 of the Constitution of India and entertain the writ petition.

Resultantly, I dispose of the writ petition in the following manner:

(i) The respondents 1 and 2 are directed to defer further coercive proceedings pursuant to Ext P3 notice to enable the petitioner to pay the liability in equated monthly instalments as stated below.

(ii) The petitioner is permitted to pay the outstanding amount as stated above with future interest and cost to the first respondent – Bank – in twelve equated monthly instalments commencing from 15.7.2023.

(iii) Needless to mention, if the petitioner commits default in any of the conditions ordered above, the petitioner would lose the benefit of this judgment and the respondents 1 and 2 would be at liberty to proceed with recovery proceedings from the stage it presently stands.

(iv) It is made clear that, no further application for modification/extension of time shall be entertained.