Bank should give an opportunity to the petitioners to repay the loan amount in installments: High Court of Kerala
Petitioners can be granted a relaxation opportunity by the bank to repay the balance of the outstanding amount in ten installments on certain conditions and was upheld by High Court of Kerala through the learned bench led by HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS in the case of UMER K v. KERALA GRAMIN BANK (WP(C) NO. 12516 OF 2022) on 7th April, 2022.
Brief facts of the case are that Petitioners as borrowers from the respondent bank, has committed default in repayment. Consequently, proceedings have been initiated by the bank for recovery of the amounts due.
Learned counsel for petitioners submitted that the sale is scheduled to be held on 08.04.2022. Though this Court is not inclined to interfere with the same, the respondents have agreed to defer the sale, provided petitioners deposit 25% of the outstanding amount by 11 a.m. on 08.04.2022. In view of the submission, there will be a direction to the respondents to defer the sale scheduled on condition that petitioners deposit an amount of Rs.15,00,000/- by 11 a.m. on 08.04.2022. In the event of the petitioners depositing the said amount, the respondents shall defer the sale scheduled for 08.04.2022, and permit the petitioners to repay the balance of the outstanding amount in ten equated monthly installments commencing from 07.05.2022, along with interest and other charges.
Counsel on behalf of the bank submitted that the petitioners committed default in repayment and the outstanding amount is Rs.59,07,400/-. He further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the outstanding amount in limited installments.
Court held that apart from the above direction to deposit Rs.15,00,000/-, the petitioners can be granted an opportunity to repay the balance of the outstanding amount in ten installments. And there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.59,07,400/- along with bank charges from the petitioners on the following conditions- The outstanding amount of Rs.59,07,400 – shall be repaid in ten equated monthly installments, after deducting the amount of Rs.15,00,000/- if deposited on 08.04.2022 and the first installment shall be paid on or before 07.05.2022 along with the interest and other charges and the remaining installments shall be paid on or before the 7th of the succeeding months.
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Judgment reviewed by – Amit Singh