Kerala High Court
Purushothaman T.A vs State Bank Of India on 12 April, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 12TH DAY OF APRIL 2024 / 23RD CHAITHRA, 1946
WP(C) NO. 14508 OF 2024
PETITIONER
PURUSHOTHAMAN T.A.
AGED 78 YEARS
S/O. AYYAPPAN, RESIDING AT THARAYIL HOUSE,
CHANDRAPURI, CMC II, CHERTHALA P.O., ALAPPUZHA,
PIN - 688524
BY ADVS.
C.V.MANUVILSAN
NAEEM IBRAHIM
O.A.ANJU
AJITHA KUMARI M.M.
VRINDA LAKSHMANAN
RESPONDENTS:
1 STATE BANK OF INDIA
REGD. OFFICE AT CORPORATE CENTRE,
MADAME CAMA ROAD, NARIMAN POINT, MUMBAI, REPRESENTED BY
ITS MANAGING DIRECTOR & CEO., PIN - 400021
2 STATE BANK OF INDIA LOCAL HEAD OFFICE
ROTARY JUNCTION, POOJAPPURA MAIN RD,
KESARI NAGAR, POOJAPURA,
THIRUVANANTHAPURAM, KERALA,
REPRESENTED BY THE ASSISTANT GENERAL MANAGER,
PIN - 695012
3 THE BRANCH MANAGER
BAZAR ROAD CHERTHALA BRANCH, STATE BANK OF INDIA,
PRIVATE BUS STAND, GANDI BAZAR SHOPPING COMPLEX
CHERTHALA, ALAPPUZHA,
KERALA, PIN - 688524
4 ASSISTANT GENERAL MANAGER
STATE BANK OF INDIA, RASMEC,
KALLUPALATHIL BUILDING, C.C.S.B. ROAD,
IRON BRIDGE P.O., ALAPPUZHA, PIN - 688011
WP(C) No.14508 Of 2024
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5 AUTHORISED OFFICER
ASSISTANT GENERAL MANAGER MANAGER
STATE BANK OF INDIA,
STRESSED ASSETS RECOVERY BRANCH, 7TH FLOOR,
VENKARATH TOWERS, PALARIVATTOM BYE-PASS
JUNCTION, ERNAKULAM, PIN - 682024
6 RESERVE BANK OF INDIA
REPRESENTED BY ITS CGM IN CHARGE AND SECRETARY,
SECRETARY'S DEPARTMENT, 16TH FLOOR,
CENTRAL OFFICE BUILDING SHAHID BHAGAT SINGH
MARG, MUMBAI, PIN - 400001
7 ADV. DEVANARAYANAN G.
ADVOCATE COMMISSIONER, LEKSHMI NIVAS,
OPPO. S.D.V. CENTRAL SCHOOL,
ZILLA COURT WARD, ALAPPUZHA,
PIN - 688001
SRI.JITHESH MENON (STANDING COUNSEL)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 12.04.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) No.14508 Of 2024
3
JUDGMENT
Dated this the 12th day of April, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the State Bank of India to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
2. The Bank paid ₹51,85,490/- to the petitioner as Housing Loan in the year 2015. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the repayment installments promptly later due to Covdi-19 pandemic. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner. WP(C) No.14508 Of 2024 4
3. Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy monthly installments, the Bank 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 Exts.P1 to P7 notices.
4. The petitioner states that he is still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly installments. If the respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, he will be put to untold hardship and loss.
5. Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner. On behalf of the respondents, it is submitted that the loan was given to the petitioner in the year 2015. The WP(C) No.14508 Of 2024 5 petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioner and required him to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioner invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Exts.P1 to P7 notices were issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted that if the petitioner is ready and willing to make a substantial payment soon and remit the outstanding amount immediately thereafter, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioner as on 10.04.2024 is ₹69,36,389/-. WP(C) No.14508 Of 2024 6
8. I have heard the counsel for the petitioner and the Standing Counsel representing the Bank.
9. The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan account initially. The default in repayment of the loan occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.
10. 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 petitioner to clear off the liability.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioner shall remit the outstanding amount of ₹69,36,389/- in 14 consecutive and equal monthly installments along with accruing interest and other Bank charges, if any. First of such installments WP(C) No.14508 Of 2024 7 shall be paid on or before 13.05.2024.
(ii) If the petitioner commits default in making payments as directed above, the respondent will be at liberty to continue with the coercive proceedings against the petitioner in accordance with law.
(iii) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.
Sd/-
N.NAGARESH JUDGE hmh WP(C) No.14508 Of 2024 8 APPENDIX OF WP(C) 14508/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE PHOTOCOPY OF THE DEMAND NOTICE ISSUED BY THE RESPONDENT BANK UNDER SECTION 13 (2) OF THE SARFAESI ACT, 2002, TO THE NAME OF THE SON OF THE PETITIONER HEREIN ON 26.10.2023 Exhibit P2 A TRUE PHOTOCOPY OF THE NOTICE NO.
AGM/RASMEC/ALPY ISSUED BY THE 4TH RESPONDENT ON 17.11.2023, TO THE NAME OF THE SON OF THE PETITIONER Exhibit P3 A TRUE PHOTOCOPY OF THE NOTICE ISSUED BY THE 5TH RESPONDENT DATED 04.12.2023, TO THE PETITIONER AND TO THE BORROWER Exhibit P4 A TRUE COPY OF THE NOTICE UNDER RULE 8 (1) OF THE SARFAESI ACT, DATED 04.01.2024, ISSUED BY THE 5TH RESPONDENT Exhibit P5 A TRUE PHOTOCOPY OF THE NEWS PAPER PUBLICATION, DATED 04.01.2024 Exhibit P6 A TRUE COPY OF THE LAWYER NOTICE ISSUED TO THE PETITIONER FROM THE BANK ON 11.01.2024 Exhibit P7 A TRUE COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DATED 19.03.2024