T.K. Dinesan vs Hdb Financial Services Ltd

Kerala High Court

T.K. Dinesan vs Hdb Financial Services Ltd on 21 May, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
                 THE HONOURABLE MR.JUSTICE N.NAGARESH
        TUESDAY, THE 21ST DAY OF MAY 2024 / 31ST VAISAKHA, 1946
                       WP(C) NO. 18231 OF 2024
PETITIONER:

            T.K. DINESAN
            AGED 49 YEARS
            S/O. VELAYUDHAN, THALEKKARA HOUSE, KALLURMA THARIYATH,
            NANNAMMUKKU. P.O. MALAPPURAM, PIN - 679575.
            BY ADVS.
            K.J.MANU RAJ
            K.VINAYA


RESPONDENTS:

    1       HDB FINANCIAL SERVICES LTD,
            REP BY ITS BRANCH MANAGER, KOZHIKKODE BRANCH, 2ND
            FLOOR, LA GRACE BUILDING , WAYANAD ROAD, MALAPARAMBA,
            NEAR NR IQRAA HOSPITAL, KOZHIKKODE, PIN - 673009.
    2       THE AUTHORIZED OFFICER
            HDB FINANCIAL SERVICES LTD, KOZHIKKODE BRANCH OFFICE,
            2ND FLOOR, LA GRACE BUILDING, WAYANAD ROAD,
            MALAPARAMBA, NEAR NR IQRAA HOSPITAL, KOZHIKKODE,
            PIN - 673009.


            SRI.PRADEESH CHACKO, SC


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
21.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 18231 OF 2024                  2




                                      JUDGMENT

Dated this the 21st day of May, 2024 The petitioner has availed two business loans from the 1st respondent totalling to an amount of Rs.33,46,850/-. The loans were availed in the year 2017.

2. The counsel for the petitioner would submit that the Covid - 19 pandemic and the consequential financial depression severely affected the petitioner and his shop had to be shut down. When the petitioner failed to maintain the loan account, the respondents initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Now, the respondents have issued possession notice. The Advocate Commissioner appointed under Section 14 of the Act, 2002 is threatening to evict the petitioner from the premises.

3. The Standing Counsel entered appearance on behalf of the respondents and resisted the writ petition. The Standing Counsel representing the respondents submitted that the writ petition is not maintainable under Article 226 of the Constitution of India, against the proceedings under the SARFAESI Act. The respondents have recalled the entire loan amount and the loan account has become NPA. Therefore, there is no question of regularisation of the loan account of the petitioner unless the petitioner remits the entire overdue arrears within one week.

4. I have heard the counsel for the petitioner and the Standing Counsel representing the respondents.

5. From the pleadings and arguments, it emerges that the petitioner had availed two loans from the Bank, for Rs.33,46,850/-. After nearly six years, the total outstanding amount has come down to Rs.31,73,301/-. This amount is less than the principal amount borrowed by the petitioner.

6. Taking into consideration the facts of the case, I am inclined to grant the petitioner to remit the overdue amount in two equal monthly installments. This writ petition is therefore WP(C) NO. 18231 OF 2024 4 disposed of with the following directions:-

(i) The petitioner shall remit the total overdue amount of Rs.5,29,408/- along with accruing interest and other charges, if any, in two equal monthly installments. The first of such installment shall be paid within a period of one month from today and the second installment within thirty days immediately thereafter.

(ii) After paying the total overdue amount to the Bank, the petitioner shall make an application to the Bank for regularisation of the loan account.

(iii) If the petitioner pays the overdue amount as directed above and makes an application for the regularisation of the loan account, the respondents shall consider the same sympathetically.

(iv) If the petitioner fails to make the payments as directed above, the respondents will be at liberty to proceed against the petitioner in accordance with law. WP(C) NO. 18231 OF 2024 5

(v) Coercive proceedings, if any, initiated against the petitioner shall stand deferred, if the petitioner makes remittances as directed above.

Sd/-

N.NAGARESH JUDGE Sru WP(C) NO. 18231 OF 2024 6 APPENDIX OF WP(C) 18231/2024 PETITIONER'S EXHIBITS Exhibit P 1 A TRUE COPY OF THE LAND TAX RECEIPT BEARING REGISTRATION DATED.15.06.2022.

Exhibit P 2 A TRUE COPY OF THE NOTICE UNDER SECTION 13(2) UNDER SARFAESI ACT DATED 20.11.2023 ALONG WITH ENVELOP ISSUED TO THE PETITIONER.

Exhibit P 3 A TRUE COPY OF THE POSSESSION NOTICE DATED 30.1.2024 ISSUED TO THE PETITIONERS ISSUED BY THE 2ND RESPONDENT.

Exhibit P 4 A TRUE COPY OF THE POSSESSION NOTICE DATED 4.5.2024 ISSUED BY THE ADVOCATE COMMISSIONER.