IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 22458 of 2009(B)
1. T.C. GEORGE, S/O. CHACKO, AGED 50 YEARS
... Petitioner
Vs
1. DISTRICT COLLECTOR,
... Respondent
2. THE AUTHORISED OFFICER,
For Petitioner :SRI.JOHNSON P.JOHN
For Respondent :SRI.G.HARIHARAN
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :16/09/2009
O R D E R
C.K.ABDUL REHIM, J
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W.P.(C) No.22458 Of 2009
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Dated this the 16th day of September, 2009
J U D G M E N T
1. Petitioner availed a loan to the tune of
Rs.4,19,000/- from the second respondent Bank for
purchasing a Goods Vehicle. The loan amount was agreed
to be repaid in 97 equal monthly instalments of Rs.11,520/-
each. But after effecting payment of some installments, the
petitioner defaulted and the Bank had taken possession of
the vehicle pursuant to proceedings initiated under the
provisions of the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act
(SARFAESI Act). Ext.P3 is the notice issued demanding
payment of Rs.68,778.76, the balance outstanding with
respect to the installments defaulted up to February 2009.
Thereafter the petitioner effected payments to the tune of
Rs.85,000/- as evidenced by Ext.P4 receipts. But inspite of
such payment the vehicle was taken possession by the
Bank. Contention of the petitioner is that, since the
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defaulted instalments had already been cleared payment of
the vehicle has to be released to him. Hence direction is
sought for with respect to release of the vehicle.
2. In the statement filed on behalf of the second
respondent it is contended that the loan amount is
Rs.4,49,000/- and the payment of Rs.85,000/- was made only
after taking possession of the vehicle. The arrears
remaining unpaid in the loan account is Rs.60,938.76 and
the petitioner is liable to pay additional finance charges to
the tune of Rs.21,286.84. Hence it is contended that the
vehicle could not be released without clearing the above
said arrears.
3. The petitioner disputed liability for payment of the
additional financial charges. According to him, at present
there is default in payment of only four equal monthly
instalments, which he is ready and willing to pay within a
reasonable time. He further submits that the entire balance
can be paid thereafter within a short period. Therefore the
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petitioner seeks directions for permitting payment of the
defaulted installments and for taking possession of the
vehicle with immediate effect.
4. Having considered the rival contentions, I am
inclined to dispose of the writ petition directing the
petitioner to make payment of an amount of Rs.45,000/- on
or before 15.10.2009. The second respondent Bank is
directed to release the vehicle to the petitioner on payment
of the above said amount, retaining the hypothication and
on the petitioner making an additional undertaking in the
form of a Bond agreeing not to transfer possession of the
vehicle till the entire loan amount is cleared. With respect
to the balance amount, the respondent Bank is directed to
furnish a calculation statement to the petitioner,
correctness of which can be disputed by the petitioner.
However, the petitioner shall clear the entire balance
amount within a period of two months from the date of
release of the vehicle.
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5. It is made clear that on the event of any failure on
the part of the petitioner to comply with any of the
conditions stipulated above, the benefit granted under this
Judgment will stand automatically recalled, and the Bank
will be at liberty to take further steps as contemplated in
the SARFAESI Act. It is also made clear that the benefit
under this Judgment is granted subject to the condition that
the petitioner is precluded from raising any subsequent
challenge against the proceedings before this court or
before any other forum.
C.K.ABDUL REHIM
JUDGE
app/-