Navas Sulaiman vs The Authorized Officer

Kerala High Court

Navas Sulaiman vs The Authorized Officer on 23 May, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

         IN THE HIGH COURT OF KERALA AT ERNAKULAM
                         PRESENT
           THE HONOURABLE MR.JUSTICE N.NAGARESH
  THURSDAY, THE 23RD DAY OF MAY 2024 / 2ND JYAISHTA, 1946
                 WP(C) NO. 18164 OF 2024
PETITIONERS:

    1    NAVAS SULAIMAN, AGED 50 YEARS, S/O. SULAIMAN,
         RESIDING AT KANGAMVELIYIL HOUSE, MANNANCHERRY P.O
         PONNAD, ALAPPUZHA DISTRICT, PIN - 688538
    2    SHANIDA S H
         AGED 46 YEARS
         W/O NAVAS, KANGAMVELIYIL HOUSE, MANNANCHERRY P.O
         PONNAD, ALAPPUZHA DISTRICT., PIN - 688538

         BY ADVS.
         B.S.SIVAJI
         K.N.VENUGOPALA PANICKER
         DHANYA SREENIVASAN
         PARVATHY B.
RESPONDENTS:

    1    THE AUTHORIZED OFFICER
         SOUTH INDIAN BANK LTD, REGIONAL OFFICE,
         THIRUVALLA, TMJ COMPLEX, RAMAN CHIRA, MUTHOOR P.O
         THIRUVALLA, PATHANAMTHITTA DISTRICT, PIN - 689107
    2    THE MANAGER
         THE SOUTH INDIAN BANK LTD, ALAPPUZHA
         BRANCH,CONVENT SQUARE, ALAPPUZHA DISTRICT-688001

         BY ADVS.
         SUNIL SHANKAR A
         VIDYA GANGADHARAN(K/000424/2020)
         GAYATHRI.M.M(K/003350/2022)


     THIS WRIT PETITION    (CIVIL) HAVING COME UP       FOR
ADMISSION ON 23.05.2024,   THE COURT ON THE SAME        DAY
DELIVERED THE FOLLOWING:
 WP(C) No.18164 of 2024
                               2




                          JUDGMENT

Dated this the 23rd day of May, 2024 The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the South Indian Bank Limited to the petitioners, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

2. The Bank paid ₹40 lakhs towards Cash Credit facility, ₹8.24 lakhs towards Term Loan, ₹47 lakhs and ₹25 lakhs towards two Housing Loans to the petitioners. 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 due to financial stringency. The repayment of loan / advance fell into arrears later. It happened due to WP(C) No.18164 of 2024 3 reasons beyond the control of the petitioners.

3. Though the petitioners requested the Bank to permit the petitioners to repay the overdue amounts in easy monthly instalments, 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 Ext.P8 notice.

4. The petitioners state that they are still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondents are 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.

5. Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the WP(C) No.18164 of 2024 4 petitioners. On behalf of the respondents, it is submitted that the petitioners committed default in repaying the loan / maintaining the advance. The Bank repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the Bank 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.P8 was issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

6. The Standing Counsel, however, submitted that if the petitioners are ready and willing to remit the outstanding amount in instalments, 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 Bank from WP(C) No.18164 of 2024 5 the petitioners as on 20.05.2024 is ₹1,25,58,646.12.

7. I have heard the counsel for the petitioners and the Standing Counsel representing the Bank.

8. The specific case of the petitioners is that the petitioners have 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 petitioners. The petitioners have provided substantial security which will safeguard the interest of the Bank.

9. 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.

10. The writ petition is therefore disposed of with the following directions:

(i) The petitioners shall remit the outstanding amount of ₹1,25,58,646.12 in six consecutive and equal monthly instalments WP(C) No.18164 of 2024 6 along with accruing interest and other Bank charges, if any. First of such instalments shall be paid on or before 15.06.2024.

(ii) If the petitioners commit single default in making payments as directed above, the respondents will be at liberty to continue with the coercive proceedings against the petitioners in accordance with law.

(iii) If the petitioners make payments as directed above, coercive proceedings, if any, against the petitioners shall stand deferred.

Sd/-

N.NAGARESH JUDGE spk WP(C) No.18164 of 2024 7 APPENDIX OF WP(C) 18164/2024 PETITIONER EXHIBITS Exhibit -P1 TRUE COPY OF THE NOTICE REF NO. RO-

TVLA/0445/SAR/SH/6911/1650/2023-24 DATED 27/12/2023.

Exhibit -P2 TRUE COPY OF THE NOTICE REF NO. RO-

TVLA/0445/SAR/SH/6951/1651/2023-24 DATED 27/12/2023.

Exhibit -P3        TRUE   COPY   OF  THE    REQUEST     DATED
                   25/03/2024   SUBMITTED     BY   THE    1ST
                   PETITIONER    BEFORE     THE      REGIONAL
                   MANAGER, SOUTH INDIAN BANK LTD.
Exhibit -P4        TRUE   COPY   OF  THE    REQUEST     DATED
                   25/03/2024   SUBMITTED     BY   THE    2ND
                   PETITIONER    BEFORE     THE      REGIONAL
                   MANAGER, SOUTH INDIAN BANK LTD.
Exhibit -P5        TRUE   COPY    OF   THE     REPLY    DATED
                   26/03/2024.
Exhibit -P6        TRUE COPY OF THE STATEMENT OF ACCOUNTS
                   IN       RESPECT        OF         ACCOUNT
                   NO.0445656000000113     OF     THE     1ST

PETITIONER FOR THE PERIOD 06/06/2020 TO 29/02/2024.

Exhibit -P7        TRUE COPY OF THE STATEMENT OF ACCOUNTS
                   IN       RESPECT        OF         ACCOUNT
                   NO.0445655000000111     OF     THE     2ST

PETITIONER FOR THE PERIOD 16/12/2017 TO 29/02/2024.

Exhibit -P8 TRUE COPY OF THE POSSESSION NOTICE DATED 09/05/2024.