BY AD v. SOHAIL MOHAMMED ANSARY

LIC HOUSING FINANCE LTD FIRST FLOOR, KANNAMPURATHU BUILDING, M.C. ROAD, STAR JUNCTION, KOTTAYAM, PIN – 686 001. BY ADVS. ASP.KURUP SADCHITH.P.KURUP(K/1419/2002) C.P.ANIL RAJ(K/872/2007) SIVA SURESH(K/2688/2022) RESHMA RAJ(K/1150/2021) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.6317 of 2024 : 2 : JUDGMENT Dated this the 27th day of February, 2024 The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the LIC Housing Finance to the petitioners, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

The respondent paid 10 lakhs and 4.5 lakhs ₹ ₹ towards two Housing Loans in the year 2015. The petitioners state that though the petitioners made remittances promptly during the initial repayment period of the financial advance, they could not pay the repayment instalments promptly later. The repayment of loans fell into arrears later due to Covid-19 pandemic. It happened due to reasons beyond the control of the petitioners. W.P.(C) No.6317 of 2024 : 3 :

Though the petitioners requested the respondent to permit the petitioners to repay the overdue amounts in easy monthly instalments, the respondent authorities were not yielding. The authorities, instead, started coercive proceedings, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Security Interest (Enforcement) Rules, 2002 and issued Ext.P1 notice.

The petitioners state that they are still in a position to clear the overdue amounts towards the loans, if sufficient time is given to clear the dues in easy monthly instalments. If the respondent is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioners, they will be put to untold hardship and loss.

Standing Counsel entered appearance on behalf of the respondent and denied all the statements made by the petitioners. On behalf of the respondent, it is submitted that the loans were given to the petitioners in the year 2015. The petitioners committed default in repaying the loans. W.P.(C) No.6317 of 2024 : 4 :

The respondent repeatedly reminded petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the respondent had no other go, than to proceed against the petitioners invoking, the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Ext.P1 was issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the respondent.

The Standing Counsel, however, submitted that if the petitioners are ready and willing to make a substantial payment soon and remit the balance overdue amount immediately thereafter, a short breathing time can be granted to the petitioners to clear the dues. The Standing Counsel submitted that the outstanding amount due to the respondent from the petitioners is 16,78,115/- and the overdue amount ₹ as on 27.02.2024 is 4,59,080/-. ₹ W.P.(C) No.6317 of 2024 : 5 :

I have heard the learned Counsel for the petitioners and the learned Standing Counsel representing the respondent.

The specific case of the petitioners is that the petitioners have been making the repayment and maintaining the loan accounts initially. The default in repayment of the loan accounts occurred lately due to reasons beyond the control of the petitioners. The petitioners have provided substantial security which will safeguard the interest of the respondent.

In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioners to clear off the liability.

The writ petition is therefore disposed of with the following directions: (i) The petitioners shall remit the overdue amount of 4,59,080/- in 12 equal and ₹ consecutive monthly instalments along with W.P.(C) No.6317 of 2024 : 6 : accruing interest and other administrative charges, if any. First of such instalments shall be paid on or before 27.03.2024. (ii) If the petitioners commit single default in making payments as directed above, the respondent will be at liberty to continue with coercive proceedings against the petitioners in accordance with law. (iii) The petitioners shall also pay current EMIs along with the aforesaid payments. (iv) If the petitioners pay the instalments as directed above, any coercive proceedings against the petitioners shall stand deferred. AMR Sd/- N. NAGARESH JUDGE W.P.(C) No.6317 of 2024 : 7 : APPENDIX OF WP(C) 6317/2024 PETITIONERS’ EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE ISSUED BY THE RESPONDENT DATED 02/12/2023.