Kerala High Court
M/S. Yenfor Ventures Pvt. Ltd. ... vs State Bank Of India Rep. By Its Branch ... on 5 June, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946
WP(C) NO. 17013 OF 2024
PETITIONERS:
1 M/S. YENFOR VENTURES PVT. LTD.
REPRESENTED BY ITS MANAGING DIRECTOR
MUHAMMAD NAJAD, S/O. KUNHAMMAD KUTTY,
DOOR NO.4/224C, KAM TOWER, KADEKKA CHALIL,
KUTTIADY P.O, KOZHIKOD, PIN - 673508.
2 MUHAMMAD NAJAD
AGED 38 YEARS, S/O. KUNJAHAMMED KUTTY,
KADEKKACHALIL HOUSE, KUTTIADI P.O,
KOZHIKODE, PIN - 673508.
3 K.C. KUNJAHAMMED KUTTY
AGED 66 YEARS, S/O. AMMAD, KADEKKACHALIL
HOUSE, KUTTIADI P.O, KOZHIKODE - 673508.
4 MOHAMMED NAJMAL
AGED 41 YEARS, S/O. KUNJAHAMMED KUTTY,
KADEKKACHALIL HOUSE, KUTTIADI P.O,
KOZHIKODE, PIN - 673508.
5 NAJMUDHEEN M.K
AGED 47 YEARS, S/O. MOIDU,
MALAYANA KANDU HOUSE, KUTTIADY P.O,
VADAKARA, KOZHIKODE, PIN - 673508.
6 MOHAMMED NAJEEL
AGED 36 YEARS, S/O. KUNJAHAMMED KUTTY.
KADEKKACHALIL HOUSE, KUTTIADI P.O,
KOZHIKODE, PIN - 673508.
BY ADVS.
M.S.ANEER
SREELAKSHMI SURESH
GIRISH KUMAR V.C
V.K.PEERMOHAMED KHAN
W.P.(C)Nos.17013 & 17019 of 2024
:2:
RESPONDENTS:
1 STATE BANK OF INDIA
REP. BY ITS BRANCH MANAGER
KUTTIADI BRANCH, KUTTIADI,
KOZHIKODE, PIN - 673508.
2 THE AUTHORIZED OFFICER,
STATE BANK OF INDIA,
STRESSED ASSETS MANAGEMENT BRANCH,
COIMBATORE, RAJA PLAZA, FIRST FLOOR,
NO.1112, AVINASHI ROAD,
COIMBATORE, PIN - 641037.
BY ADV TOM K.THOMAS
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 05.06.2024, ALONG WITH WP(C).17019/2024, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C)Nos.17013 & 17019 of 2024
:3:
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946
WP(C) NO. 17019 OF 2024
PETITIONERS:
1 NAJIYA,
AGED 56 YEARS, W/O. MR. KUNHAMMAD KUTTY,
KADEKKACHALIL HOUSE, KUTTIADI P.O,
KOZHIKODE, PIN - 673508.
2 MOHAMMED NAJMAL,
AGED 41 YEARS, S/O. KUNJAHAMMED KUTTY,
KADEKKACHALIL HOUSE, PROPRIETOR,
M/S. KAM FUEL STATION, HPCL OUTLET,
VADAKARA ROAD, KUTTIADI P.O.,
KOZHIKODE, PIN - 673508.
BY ADVS.
M.S.ANEER
SREELAKSHMI SURESH
GIRISH KUMAR V.C
RESPONDENTS:
1 STATE BANK OF INDIA
REP. BY ITS BRANCH MANAGER,
KUTTIADI BRANCH, KUTTIADI,
KOZHIKODE, PIN - 673508.
2 THE AUTHORIZED OFFICER,
STATE BANK OF INDIA,
STRESSED ASSETS MANAGEMENT BRANCH,
W.P.(C)Nos.17013 & 17019 of 2024
:4:
COIMBATORE, RAJA PLAZA,
FIRST FLOOR, NO.1112, AVINASHI ROAD,
COIMBATORE, PIN - 641037.
BY ADV TOM K.THOMAS
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 05.06.2024, ALONG WITH WP(C).17013/2024, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C)Nos.17013 & 17019 of 2024
:5:
JUDGMENT
Dated this the 5th day of June, 2024 The petitioners, who have availed financial assistance from the 1st respondent-Bank, filed these writ petitions seeking to quash Ext.P3 and to direct the respondents to settle the loan account of the petitioners by affording time to clear off the entire due amounts payable and also by permitting the petitioners to pay off the amounts within the time as framed by this Court.
2. The pleadings and arguments would indicate that the total outstanding liability payable by the petitioners would exceed ₹40,69,00,000/- in W.P.(C) No.17013 of 2024 and ₹2,92,94,000/- in W.P.(C) No.17019 of 2024. W.P.(C)Nos.17013 & 17019 of 2024 :6:
3. When these writ petitions came up for admission on 03.05.2024, this Court passed an interim order to the following effect:-
"3. Sri. M.S. Aneer, the learned Counsel for the petitioners submits that the petitioners are prepared to settle the loan account if a breathing time is given. The Counsel submits that some buyers have already approached the petitioners to purchase 1/3rd share of the property mortgaged. The Counsel also submits that in these circumstances one month time may be granted to clear up the loan and till then, possession may not be taken.
4. Having heard Sri. M.S. Aneer, the learned Counsel for the petitioner, there shall be a direction to the respondents to defer taking possession of the petition schedule property for a period of one month from today. "
The petitioners did not remitted the amount as undertaken before this Court.
4. Counsel for the petitioners submits that the undertaking was made bonafide as there was a prospective purchaser to purchase the properties of the petitioners. The said arrangement will not happen fast and if the petitioners are given a breathing time, the entire liability can be wiped out W.P.(C)Nos.17013 & 17019 of 2024 :7: by way of One Time Settlement.
5. Standing Counsel entered appearance on behalf of the Bank and resisted the writ petition. The Standing Counsel pointed out that the offer made by the petitioners is only an excuse to delay and defeat the recovery process. The petitioners had approached this Court earlier filing OP(DRT) No.1 of 2024. This Court passed an interim order on 23.01.2024 in the said OP(DRT), directing the petitioners to remit an amount of ₹5 Crores on or before 02.02.2024 and a further amount of ₹5 Crores on or before 23.02.2024. The petitioners did not remit the amount as directed. The OP(DRT) was subsequently dismissed. The petitioners are not entitled to any relief.
6. I have heard the learned Counsel for the petitioners and the learned Standing Counsel representing the respondents.
W.P.(C)Nos.17013 & 17019 of 2024 :8:
7. The challenge of the petitioners in these writ petitions is against Ext.P2 notice issued by the Advocate Commissioner in a proceedings under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Ordinarily, the petitioners are bound to challenge the said notice before the Debts Recovery Tribunal invoking Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
8. It is seen that when these writ petitions came up for admission on 03.05.2024, the petitioners themselves undertook to clear up the entire loan if one month time is granted. Relying on the submission so made, this Court passed an interim order directing the respondents to defer taking possession of the petition scheduled property for a period of one month. The petitioners have not made any W.P.(C)Nos.17013 & 17019 of 2024 :9: payments as undertaken on 03.05.2024.
9. In the circumstances, I am not inclined to grant any relief to the petitioner in view of the alternate remedy available to the petitioner as also in view of the conduct of the petitioners in not making remittances as undertaken before this Court.
10. Counsel for the petitioner submits that the petitioners can pay ₹5 Crores within a period of one week from today and will be able to clear the entire outstanding soon thereafter, if the petitioners have granted One Time Settlement. It will be open to the petitioners to approach the Bank in this regard.
The writ petition is dismissed.
Sd/-
N. NAGARESH JUDGE ams W.P.(C)Nos.17013 & 17019 of 2024 :10: APPENDIX OF WP(C) 17013/2024 PETITIONERS' EXHIBITS Exhibit -P1 TRUE COPY OF THE POSSESSION NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DTD 20.07.2023 Exhibit-P2 TRUE COPY OF THE AMENDED SA FILED BEFORE THE HONOURABLE DEBT RECOVERY TRIBUNAL-I, ERNAKULAM Exhibit-P3 TRUE COPY OF THE POSSESSION NOTICE ISSUED BY THE ADVOCATE COMMISSIONER INFORMING THAT THE PROPERTY WILL BE TAKEN POSSESSION ON 07.05.2024 Exhibit P4 TRUE COPY OF THE LETTER DATED 30.05.2024 EXPRESSING INTEREST ISSUED BY THE INVESTORS NAMELY M/S KARADAN LANDS PVT. LTD Exhibit P5 TRUE COPY OF THE E-MAIL COMMUNICATION DATED 01.06.2024 WITH THE RESPONDENT BANK W.P.(C)Nos.17013 & 17019 of 2024 :11: APPENDIX OF WP(C) 17019/2024 PETITIONERS' EXHIBITS Exhibit -P1 TRUE COPY OF THE SA NO.352/2023 FILED ON 07.07.2023 Exhibit-P2 TRUE COPY OF THE WRITTEN STATEMENT FILED BY THE RESPONDENTS IN SA NO.352/2023 BEFORE THE DEBT RECOVERY TRIBUNAL-I, ERNAKULAM DATED 16.08.2023 Exhibit-P3 TRUE COPY OF THE COMMISSIONER NOTICE DATED 30.04.2024 INTIMATING THE TAKING POSSESSION OF PROPERTIES SCHEDULED IN THE PROCEEDINGS