IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
THURSDAY, THE 25TH DAY OF AUGUST 2022 / 3RD BHADRA, 1944
WP(C) NO. 4005 OF 2022
PETITIONER:
M/S.DRISHYA FOOD PRODUCTS
REP. BY ITS PROPRIETRIX NALINI.I.K.,
AGED 56 YEARS, W/O. VIJAYAN.K., KARUMATHIL HOUSE,
28/25/01 WARRIAM LANE, PATTURAICKAL,
THRISSUR - 680 022.
BY ADVS.
N.M.MADHU
C.S.RAJANI
RESPONDENTS:
1 THE CANARA BANK,
WEST PALACE ROAD BRANCH, THRISSUR - 680 020,
REPRESENTED BY ITS BRANCH MANAGER.
2 THE AUTHORISED OFFICER
CANARA BANK, WEST PALACE ROAD BRANCH,
THRISSUR - 680 020.
BY ADVS.
PAULY MATHEW MURICKEN
ASHA JOSE
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
25.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 4005 OF 2022
2
JUDGMENT
The petitioner has approached this Court challenging proceedings under the SARFAESI Act which have been initiated by the Bank for recovery of the amounts due from the petitioner.
2. The petitioner availed three loans from the respondent Bank. One is stated to be cash credit facility, while the other two are term loans. The tenure of the cash credit facility and one among the term loans has expired and the total outstanding in respect of those two loans is stated to be Rs.31,62,468/- (Rupees thirty one lakhs sixty two thousand four hundred sixty eight only). In respect of the 2 nd term loan, the term is to expire in September 2024 and the overdue amount is stated to be Rs.6,51,002/- (Rupees six lakhs fifty one thousand and two only).
3. During the course of hearing, the petitioner has confined the relief to an opportunity for repaying the overdue amount of Rs.6,51,002/- (Rupees six lakhs fifty one thousand and two only) in instalments and to obtain regularisation of the 2nd term loan account and for an opportunity to repay the WP(C) NO. 4005 OF 2022 3 total outstanding amount of Rs.31,62,468/- (Rupees thirty one lakhs sixty two thousand four hundred sixty eight only) due under the cash credit facility and 1 st term loan account in instalments.
4. It was submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the loans. It was 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 overdue amount in respect of 2nd term loan account in instalments and regularise the said loan account and is also willing to accept repayment of the outstanding amount in respect of the cash credit facility and 1 st term loan account in limited instalments.
5. I have heard the learned counsel for the petitioner as well as the learned counsel for the respondents.
6. Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the overdue amount of Rs.6,51,002/- (Rupees six lakhs fifty one thousand and two only) in 10 instalments and thereafter, if the amount so WP(C) NO. 4005 OF 2022 4 directed is repaid within the time as directed above, to have the 2nd term loan regularised and that the petitioner can also be granted an opportunity to repay the outstanding amount of Rs.31,62,468/- (Rupees thirty one lakhs sixty two thousand four hundred sixty eight only) due under the the cash credit facility and 1st term loan account in 16 instalments.
7. Accordingly, there will be a direction to the respondent Bank to accept repayment of the overdue amount of Rs.6,51,002/- (Rupees six lakhs fifty one thousand and two only) in respect of the 2 nd term loan account along with accrued interest, costs and charges from the petitioner and regularise the 2nd term loan account of the petitioner and to accept repayment of the outstanding amount in respect of the cash credit facility and 1st term loan account [Rs.31,62,468/- (Rupees thirty one lakhs sixty two thousand four hundred sixty eight only)] along with accrued interest, costs and charges from the petitioner on the following conditions:
i. The petitioner shall pay the overdue amount of Rs.6,51,002/- (Rupees six lakhs fifty one thousand and WP(C) NO. 4005 OF 2022 5 two only) in respect of the 2 nd term loan account along with any accrued interest, costs and charges in 10 equated monthly instalments. The first instalment shall be paid on or before 16.09.2022 and the subsequent instalments shall be paid on or before the 16 th day of every succeeding month. The petitioner shall continue to pay the regular instalments along with the instalments as directed above. On payment of the overdue amount in respect of the 2nd term loan account, the same shall be regularized.
ii. The petitioner shall pay the outstanding amount of Rs.31,62,468/- (Rupees thirty one lakhs sixty two thousand four hundred sixty eight only) in respect of cash credit facility and the 1st term loan account along with any accrued interest, costs and charges in 16 equated monthly instalments. The first instalment shall be paid on or before 16.09.2022 and the subsequent instalments shall be paid on or before the 16th day of every succeeding month.
iii. In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.
WP(C) NO. 4005 OF 2022 6 iv. In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.
The writ petition is disposed of as above.
Sd/-
GOPINATH P.
JUDGE DK WP(C) NO. 4005 OF 2022 7 APPENDIX OF WP(C) 4005/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE DEMAND NOTICE DATED 10.11.2021 ISSUED BY THE 2ND RESPONDENT Exhibit P2 TRUE COPY OF THE LETTER DATED 15.11.2021 ISSUED BY THE FIRST RESPONDENT BANK