2025:KER:26054 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 24TH DAY OF MARCH 2025 / 3RD CHAITHRA, 1947 WP(C) NO. 10884 OF 2025 PETITIONER: AFSATH A.T., AGED 60 YEARS, W/O. UMMER, BAITHUL HIRA, VADAKKUMBAD, NEAR VADAKKUMBAD HSS, UMMENCHIRA, KANNUR, PIN – 670649. BY ADVS. LINDONS C.DAVIS E.U.DHANYA P.JAHANGEER N.S.SHAMILA CHINJU P. JOYIES RESPONDENTS: 1 THE KERALA STATE CO-OPERATIVE BANK LTD., REPRESENTED BY ITS BRANCH MANAGER, KANNUR REGIONAL OFFICE, KANNUR P.O., KANNUR, PIN – 670001. 2 BRANCH MANAGER, THE KERALA STATE CO-OPERATIVE BANK LTD., KANNUR REGIONAL OFFICE, KANNUR P.O., KANNUR, PIN – 670001. 3 AUTHORIZED OFFICER, THE KERALA STATE CO-OPERATIVE BANK LTD., KANNUR REGIONAL OFFICE, KANNUR P.O., KANNUR, PIN – 670001. BY ADV M.SASINDRAN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 10884 OF 2025 2 2025:KER:26054 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 account. It is also submitted that as per Ext.P2 and P3, the petitioner remitted an amount of Rs.2,50,000/- towards the loan liability. 3. The learned counsel appearing for the respondent Bank submits that the deposit in terms of Exts.P2 and P3 was to the Savings Bank account of the petitioner and not against the loan liability. It is submitted that presently there is a credit of Rs.3,08,661/- in the Savings Bank account of the petitioner and if an amount of Rs.3 lakhs is adjusted against the overdue amount, the balance overdue amount will be Rs.10,06,961/- as on 18.03.2025. 4. The learned counsel appearing for the petitioner would submit that the petitioner has no objection in WP(C) NO. 10884 OF 2025 3 2025:KER:26054 adjusting the amount of Rs.3 lakhs in the Savings Bank account of the petitioner against the loan liability. It is submitted that the petitioner may be permitted to pay off the balance overdue amount in some instalments. 5. Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the respondent Bank should be permitted to forthwith adjust an amount of Rs.3 lakhs from the Savings Bank account of the petitioner with the respondent Bank against the loan liability. The balance overdue amount of Rs.10,06,961/- as on 18.03.2025 together with any accrued interest, costs and charges will be paid in 15 monthly instalments and thereafter, if the amount so directed is repaid within the time as directed above, the loan account shall be regularised. 6. Accordingly, there will be a direction to the respondent Bank to accept repayment of the balance overdue amount of Rs.10,06,961/-(Rupees ten lakhs six thousand nine hundred and sixty one only) after adjusting the amount of Rs.3,00,000/- as permitted, along with any accrued interest, costs and charges from the petitioner and regularise the loan account of the petitioner in the following manner: WP(C) NO. 10884 OF 2025 4 2025:KER:26054 i. The overdue amount of Rs.10,06,961/-(Rupees ten lakhs six thousand nine hundred and sixty one only) along with any accrued interest, costs and charges shall be repaid in 15 equated monthly instalments; ii. The first instalment shall be paid on or before 30.04.2025 and the subsequent instalments shall be paid on or before the last working day of every succeeding months; 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. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE DK WP(C) NO. 10884 OF 2025 5 2025:KER:26054 APPENDIX OF WP(C) 10884/2025 PETITIONER EXHIBITS Exhibit P1 A COPY OF THE DEMAND NOTICE DATED 27.08.2024 ISSUED UNDER SECTION 13(2) OF SARFAESI ACT, BY THE 3RD RESPONDENT. Exhibit P2 A COPY OF THE CASH RECEIPT DATED 05.12.2024 OF RS. RS.1,00,000/- ISSUED BY THE 1ST RESPONDENT BANK. Exhibit P3 A COPY OF THE CASH RECEIPT DATED 31.12.2024 OF RS.1,50,000/- ISSUED BY THE 1ST RESPONDENT BANK