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Petitioner is given relaxation to pay the total due loan amount in eight equal monthly installments: High Court of Kerala

Respondent bank is directed to accept the total due amount in equal monthly installments and liberty to proceed against the petitioner in case of any defaults in the payment and was upheld by High Court of Kerala through the learned bench led by HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P. in the case of SHYAMPRAKASH K. vs. STATE BANK OF INDIA (WP(C) NO. 14046 OF 2022) on 19th April, 2022.

Brief facts of the case are that the petitioner is a guarantor to the loan for house purchase sanctioned in the name of his mother for a sum of Rs.15 lakhs in the year 2016 and due to the difficulties caused, repayments were not made in time and the same led to proceedings for recovery against the petitioner.

The limited prayer of the petitioner in this writ petition is to grant installment facility to wipe off the arrears due to the respondent Bank and also for regularizing the defaulted installments. Learned Standing Counsel for the respondent Bank, on instructions submitted that the outstanding overdue as on today is Rs.3,75,000/-

Taking into account the averments in the writ petition and after hearing the learned counsel on either side, the Court disposed of the writ petition permitting the petitioner to clear off the overdue amounts due to the respondent bank in 8 equal monthly installments starting from 15.05.2022 and the petitioner will also be liable to pay the applicable EMI with the accrued interest if any, continuously over and above the installments to pay off the overdue amounts.  And if there are two consecutive defaults, the petitioner will lose the benefit of this order and the respondent bank will be at liberty to proceed against the petitioner on the basis of the recovery proceedings already initiated.

Click here to read the Judgment

Judgment reviewed by – Amit Singh

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