2025:KER:29469 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 4TH DAY OF APRIL 2025 / 14TH CHAITHRA, 1947 WP(C) NO. 9263 OF 2025 PETITIONERS: 1 MRS. DOMANICA BENNY, AGED 50 YEARS, W/O. BENNY, RESIDING AT PUTHENAPURACKAL, POLLETHAI, KALAVOOR, POLLETHAI P.O., ALAPUZHA, PIN – 688 522. 2 BENNY, AGED 56 YEARS, S/O. JOSEPH, RESIDING AT PUTHENAPURACKAL, POLLETHAI, KALAVOOR, POLLETHAI P.O., ALAPUZHA, PIN – 688 522. BY ADVS. LIZA MEGHAN CYRIAC JOLLY JOHN C.S.RESHMI IRENE BABU MEHNAZ P. MOHAMMED RUBIN SHIBU RESPONDENTS: 1 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF FISHERIES, SECRETARIAT, THIRUVANANTHAPURAM, PIN – 695 001. 2 RESERVE BANK OF INDIA, REP. BY ITS GOVERNOR, HEAD OFFICE AT 6TH FLOOR, CENTRAL OFFICE BUILDING, SHAHID BHAGAT SINGH ROAD, MUMBAI, PIN – 400 001. 3 STATE POLICE CHIEF, STATE POLICE HEADQUARTERS, VELLAYAMBALAM, THIRUVANANTHAPURAM, PIN – 695 010. 2025:KER:29469 WP(C) 9263/2025 2 4 DIRECTOR, DIRECTORATE OF FISHERIES, VIKAS BHAVAN, THIRUVANANTHAPURAM, PIN – 695 033. 5 THE KERALA FISHERMEN DEBT RELIEF COMMISSION, T.C. 11/683-1&29, NALANDA ROAD, NANTHANCODU, THIRUVANANTHAPURAM, KERALA , PIN – 695 033, REPRESENTED BY ITS SECRETARY. 6 KERALA STATE LEGAL SERVICES AUTHORITY, NIYAMA SAHAYA BHAVAN, HIGH CT RD, COMPOUND, KOCHI, ERNAKULAM, PIN – 682 031, REPRESENTED BY ITS MEMBER SECRETARY. 7 MAHINDRA RURAL HOUSING FINANCE LTD., UNIT NO. 203, AMITI BUILDING, PIRAMAL AGASTYA CORPORATE PARK, OPPOSITE FIRE BRIGADE STATION, KAMANI JUNCTION, L.B.S MAIN ROAD, KURLA (WEST) MUMBAI, REPRESENTED BY ITS AUTHORIZED OFFICER, PIN – 400 070. 8 AUTHORIZED OFFICER, MAHINDRA RURAL HOUSING FINANCE LTD., 3RD 1ST FLOOR ROS COMPLEX, NEDUMPRAKKAD, CHERTHALA, KERALA, PIN – 688 524. BY ADVS. M.A.JOSEPH MANAVALAN (FOR R7 & R 8) BEA MARY BENNY(K/000129/2021) JOSEPH C.J.(K/3425/2022) ANANTHAKRISHNAN R.(K/873/2023) T.G.SUNIL, SC SREEJITH V.S. (GP) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2025:KER:29469 WP(C) 9263/2025 3 JUDGMENT Petitioners availed financial assistance from respondents 7 and 8. On default being committed, proceedings were initiated against the petitioners under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). It appears that the disputes were settled in a Lok Adalath conducted by the Ambalappuzha Taluk Legal Services Committee, under which the petitioners were permitted to clear the entire liability by paying a sum of Rs.1,70,000/- in total against the liability of Rs.4,10,000/-. However, the petitioners failed to comply with the terms on which they were permitted to settle the loan liability by paying a sum of Rs.1,70,000/- . 2. The learned counsel appearing for respondents 7 and 8 would submit that since the petitioners failed to pay the amount within the time specified in Ext.P6 award of the Lok Adalath, respondents 7 and 8 are no longer willing to accept the 2025:KER:29469 WP(C) 9263/2025 4 payment of Rs.1,70,000/- in full and final settlement. It is submitted that the present overdue amount is Rs.3,27,169/- (as on 10-03-2025) and there is no objection in allowing the petitioners to pay off the said amount in some instalments. 3. The learned counsel appearing for the petitioners submits that the 2nd petitioner is a fisherman. It is submitted that the petitioners are entitled to relief from the Kerala State Fishermen Debt Relief Commission. It is submitted that in the alternative, the petitioners are entitled to clear the liability by paying the amount specified in the award of the Lok Adalath. The learned counsel also submits that the interest charged by respondents 7 and 8 is excessive and they have acted in violation of the Fair Practices Code for Lenders issued by the Reserve Bank of India. 4. The learned counsel appearing for the Kerala State Fishermen Debt Relief Commission would submit that the claim of the petitioners cannot be considered by the 2025:KER:29469 WP(C) 9263/2025 5 Fisherman Debts Relief Commission, as the jurisdiction of the Commission extends only to loans availed till 31-12-2007. 5. Having heard the learned counsel appearing for the petitioners, the learned counsel appearing for respondents 7 and 8 and the learned counsel appearing for the Kerala State Fishermen Debt Relief Commission and in the facts and circumstances noticed above, I am of the view that the only relief that can be granted to the petitioners is the permission to pay off the overdue amount in some instalments. The petitioners are clearly not entitled to the benefit of any proceedings under the Kerala Fishermen Debt Relief Commission Act, 2008. The petitioners are also not entitled to the benefit of the settlement arrived at before the Lok Adalath on account of the fact that the petitioners failed to comply with the terms of settlement. The question regarding rate of interest cannot be adjudicated in a writ petition under Article 226 of the Constitution of India. Apart from a bare allegation 2025:KER:29469 WP(C) 9263/2025 6 that respondents 7 and 8 have acted in violation of the Fair Practices Code for Lenders, there is no specific averment that would even prima facie suggest that such an allegation has any basis. 6. Faced with this situation, the learned counsel for the petitioner seeks permission to clear the liability in installments. 7. This writ petition is clearly not maintainable in the light of the law laid down by the Supreme Court in S. Shobha v. Muthoot Finance Ltd; 2025 SCC OnLine SC 177. However, the learned counsel for the respondents 7 and 8 has no objection to some installments being granted. 8. Accordingly, there will be a direction to the respondents 7 and 8 to accept repayment of the entire overdue amount of Rs.3,27,169/- along with any accrued interest, costs and charges from the petitioners and regularize the loan account of the petitioners in the following manner: 2025:KER:29469 WP(C) 9263/2025 7 (i) The petitioners shall pay the overdue amount of Rs.3,27,169/- together with any accrued interest, costs and charges in 15 equated monthly installments; (ii) 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 the succeeding months; (iii) Petitioners shall continue to pay the regular EMI’s/installments along with the installments as directed above; (iv) In the event of default of any one installment, the respondent financial institution shall be entitled to proceed in accordance with the law; (v) In order to enable the petitioners 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 2025:KER:29469 WP(C) 9263/2025 8 APPENDIX OF WP(C) 9263/2025 PETITIONERS’ EXHIBITS Exhibit P1 TRUE COPY OF THE IDENTITY CARD ISSUED BY THE KERALA FISHERMAN WELFARE FUND BOARD Exhibit P2 TRUE COPY OF SOME OF THE RECEIPTS ISSUED BY THE 7TH RESPONDENT FOR THE REPAYMENTS MADE BY THE PETITIONERS Exhibit P3 TRUE COPY OF THE NOTICE OF POSSESSION DATED 22.10.2024 ISSUED BY THE 8TH RESPONDENT Exhibit P4 TRUE COPY OF THE MASTER CIRCULAR ISSUED BY NATIONAL HOUSING BANK DATED JULY 01, 2016 WITH THE RELEVANT CIRCULARS PERTAINING TO THE WRIT PETITION Exhibit P5 TRUE COPY OF THE NEWSPAPER REPORT PUBLISHED BY ‘THE HINDU’ DATED 24.03.2025 ABOUT A STUDY CONDUCTED BY CENTRAL MARINE FISHERIES RESEARCH INSTITUTE ON FISHERMAN COMMUNITY HIT BY CLIMATE CHANGE Exhibit P6 TRUE COPY OF THE SETTLEMENT AGREEMENT DATED 27.11.2024 SIGNED BETWEEN THE PETITIONER AND THE 7TH RESPONDENT BEFORE THE LOK ADALAT CONDUCTED BY THE 6TH RESPONDENT Exhibit P7 TRUE COPY OF THE LETTER IN ENGLISH DATED 31.03.2025 SEND BY THE PETITIONER TO THE 7TH RESPONDENT Exhibit P8 TRUE COPY OF THE RECEIPT OF SPEED-POST OF EXHIBIT P7 LETTERS TO THE 7TH AND 8TH RESPONDENT Exhibit P9 TRUE COPY OF THE COMPLAINT SENT TO 2ND RESPONDENT BY THE 2ND PETITIONER WITHOUT ANNEXURES DATED 02.04.2025