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Petitioner can payoff the total loan amount due on him in equal monthly installments: High Court of Kerala

Court directed the respondent bank to accept repayment of due amount from the petitioner in installments in view of Covid-19 pandemic and was upheld by High Court of Kerala through the learned bench led by HONOURABLE MR.JUSTICE VIJU ABRAHAM in the case of NELSON JOSE v. THE FEDERAL BANK LTD. (WP(C) NO. 13823 OF 2022) on 12th April, 2022.

Brief facts of the case are that petitioner is a building contractor, he had availed a cash credit facility of Rs.19 lakhs and a housing loan of Rs.10 lakhs from the respondent bank. The grievance of the petitioner is that due to Covid-19 pandemic and consequential lockdown he could not run the business profitably for the last 2 years. And due to the same there was default in repayment of the amount. The respondent bank initiated SARFAESI proceedings against him.

Learned counsel for the respondent bank on instruction submitted that as regards the housing loan is concerned, the amount overdue as on date is Rs.4,74,047/- and the Bank is agreeable to permit the petitioner to payoff the said outstanding amount in 8 equal monthly installments and regularize the said loan account. As regards the agricultural loan availed by the petitioner, the total amount outstanding as on date is Rs.47,63,381/- and the bank is willing to permit 12 monthly installments for repayment of the same.

In view of the stand taken by the respondent bank, the court disposed of the petition with a direction to the petitioner to payoff the outstanding amount in housing loan to the tune of Rs.4,74,047/- in 8 equal monthly installments starting from 5th of May, 2022 and also to payoff the amount due in agricultural loan amounting to Rs.47,63,381/- in 12 equal monthly installments starting from 5th May, 2022 and the petitioner shall also pay the monthly installment due in the housing loan dues without any fail. In the event of default of any one installment, the bank will be entitled to proceed with the recovery proceedings from the stage at which it has been stopped.

Click here to read the Judgment

Judgment reviewed by – Amit Singh

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