Idbi Bank Ltd vs The District Police Chief

Kerala High Court

Idbi Bank Ltd vs The District Police Chief 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. 12031 OF 2024
PETITIONER:

              IDBI BANK LTD.,
              IDBI TOWER WTC COMPLEX, CUFFE PARADE, MUMBAI,
              400 005 AND HAVING ONE OF ITS BRANCH AT M.G. ROAD,
              ERNAKULAM
              REPRESENTED BY MR MANOJ KUMAR,
              DEPUTY GENERAL MANAGER AND AUTHORIZED OFFICER
              IDBI BANK LTD,
              RETAIL ASSETS CENTRE, 2ND FLOOR, IDBI BUILDING,
              PANAMPILLY NAGAR, KOCHI,
              PIN - 682035

              BY ADVS.
              P.PAULOCHAN ANTONY
              SREEJITH K.
RESPONDENTS:

     1        THE DISTRICT POLICE CHIEF ,
              OFFICE OF THE DISTRICT POLICE CHIEF, PAVAMANI RD,
              TAZHEKKOD, KOZHIKODE,
              KERALA, PIN - 673004
     2        THE STATION HOUSE OFFICER,
              KODUVALLY POLICE STATION,KODUVALLY,
              KOZHIKODE, KERALA, PIN - 673572
     3        MR. ABDU RAHMAN K T.,
              S/O KOYAMU HAJI,KAVIL THOUKAYIL,M
              ANNIL KADAVU, AVILORA P.O.
              KOZHIKODE, PIN - 673572
     4        MRS. HAIMUNA,
              W/O ABDU RAHIMAN K T,KAVIL THOUKAYIL,
              MANNIL KADAVU, AVILORA P.O.,
              KOZHIKODE, PIN - 673572

           SRI.BINOY DAVIS-GOVERNMENT PLEADER
     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.05.2024, ALONG WITH WP(C).14095/2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
 WP(C) Nos.12031 & 14095 of 2024
                               2




        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. 14095 OF 2024
PETITIONER:

         ABDU RAHIMAN,
         AGED 58 YEARS
         S/O KOYAMU HAJI KAVILTHODUDUKAYIL,
         KAVIL THODUKAYIL,MANNIL KADAVU,
         AVILORA P.O, KIZHAKKOTH,
         KOZHIKODE, KERALA, PIN - 673572

         BY ADVS.
         MUHAMMED SAFEER A.
         MOHAMMED RAZALI K.A
         KURIAN MAXIE
         RAHUL.S
         RESHMI U.N.


RESPONDENTS:

    1    IDBI BANK LTD,
         REPRESENTED BY ITS BRANCH MANAGER,
         KALPATTA BRANCH, GROUND FLOOR
         KALPATTA BYPASS JUNCTION,
         WAYANAD, PIN - 673121
    2    AUTHORIZED OFFICER,
         IDBI BANK LTD,REPRESENTED BY ITS BRANCH
         MANAGER,KALPATTA BRANCH,
         GROUND FLOOR KALPATTA BYPASS JUNCTION,
         WAYANAD, PIN - 673121
 WP(C) Nos.12031 & 14095 of 2024
                            3




    3    DISTRICT COLLECTOR,
         WAYANAD, NH212, CIVIL STATION,
         KAIRALI NAGAR, KALPETTA,
         KERALA, PIN - 673122

         SRI.M.S.KIRAN-R1
         SRI.BINOY DAVIS-GOVERNMENT PLEADER


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 23.05.2024, ALONG WITH WP(C).12031/2024, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) Nos.12031 & 14095 of 2024
                              4




                        JUDGMENT

Dated this the 23rd day of May, 2024 [W.P.(C) Nos.12031 & 14095 of 2024] The petitioner in W.P.(C) No.14095 of 2024 has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the IDBI Bank Limited to the petitioner invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The 1st respondent-Bank has filed W.P.(C) No.12031 of 2024 seeking to direct respondents 1 and 2 to remove respondents 3 and 4 from the petition scheduled property. Hereinafter, the petitioner in W.P.(C) No.14095 of 2024 is mentioned as 'the petitioner' and the petitioner in W.P.(C) No.12031 of 2024 is mentioned as 'the Bank' for reference. WP(C) Nos.12031 & 14095 of 2024 5

2. The Bank paid ₹44 lakhs to the petitioner as Overdraft in the year 2017. 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 covid-19 pandemic. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner.

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 notice.

4. The petitioner states that he is still in a position to clear the overdue amounts towards the loan, if sufficient time WP(C) Nos.12031 & 14095 of 2024 6 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 Bank, it is submitted that the advance was given to the petitioner in the year 2017. The petitioner committed default in maintaining the advance.

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 notice was issued in these circumstances. The petitioner has not advanced any legal WP(C) Nos.12031 & 14095 of 2024 7 reasons to thwart the coercive proceedings initiated by the Bank.

7. Standing Counsel further submitted that the petitioner had earlier approached this Court filing W.P.(C) No.26879 of 2023 and this Court as per judgment dated 14.08.2023 disposed of the writ petition and directed the petitioner to pay the overdue amount in 12 equated monthly instalments. But, the petitioner committed default in payment of instalments.

8. The Standing Counsel, however, submitted that if the petitioner is ready and willing to make a substantial payment soon and remit the balance overdue 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 19.05.2024 is ₹22,75,876/-. WP(C) Nos.12031 & 14095 of 2024 8

9. I have heard the counsel for the petitioner, the learned Standing Counsel representing the Bank and the learned Government Pleader.

10. 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.

11. In the facts and circumstances of the case, I am inclined to dispose of the writ petitions giving a short and reasonable time to the petitioner to clear off the liability.

12. The writ petitions are therefore disposed of with the following directions:

(i) The petitioner shall remit ₹12 lakhs within two weeks from today and the balance outstanding amount in eight consecutive and WP(C) Nos.12031 & 14095 of 2024 9 equal monthly installments immediately thereafter along with accruing interest and other Bank charges, if any.

(ii) The Bank should give back possession of the property to the petitioner on the petitioner paying ₹12 lakhs.

(iii) If the petitioner commits default in making payments as directed above, the petitioner will have to surrender the possession of the property to the Bank.

(iv) 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) Nos.12031 & 14095 of 2024 10 APPENDIX OF WP(C) 12031/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ORDER IN CMP NO 680/2023 DATED 20.04.2023 Exhibit P2 A TRUE COPY OF THE COMMISSION REPORT DATED 02.03.2024 Exhibit P3 A TRUE COPY OF THE POLICE COMPLAINT DATED 02.03.2024 Exhibit P4 A TRUE COPY OF THE POLICE COMPLAINT RECEIPT DATED 02.03.2024 WP(C) Nos.12031 & 14095 of 2024 11 APPENDIX OF WP(C) 14095/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE STATEMENT OF THE LOAN ACCOUNT BEARING NO 149D651100001595 FOR THE INTERVENING PERIOD OF 30.11.2017 TO 25.03.2024 Exhibit P2 THE TRUE COPY OF THE JUDGMENT DATED 14.08.2023 IN W.P.(C) NO. 26879 OF 2023 Exhibit P3 A TRUE COPY OF THE REPRESENTATION DATED 31.07.2023 SUBMITTED BY THE PETITIONER TO THE RESPONDENT Exhibit P4 THE TRUE COPY OF THE ELECTION URGENT NOTICE DATED 26.02.2024 ISSUED BY THE 3 RD RESPONDENT