Kerala High Court
Idsi Technologies Private Ltd vs State Of Kerala on 31 July, 2025
Author: N.Nagaresh
Bench: N.Nagaresh
2025:KER:57449
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 31ST DAY OF JULY 2025 / 9TH SRAVANA, 1947
WP(C) NO. 28215 OF 2025
PETITIONERS:
1 IDSI TECHNOLOGIES PRIVATE LTD.,
REPRESENTED BY ITS DIRECTOR,
2ND FLOOR, THAPASYA BUILDING,
INFOPARK, KAKKANAD, KOCHI,
ERNAKULAM DISTRICT, PIN - 682030
2 RAJESH PONNAN,
AGED 52 YEARS,
S/O PONNAN P.,
DIRECTOR OF IDSI TECHNOLOGIES PRIVATE LTD,
RESIDING AT P 306, SANTH PAVANA BUILDINGS,
YUVAJANA SAMAJ ROAD, KADAVANTHRA,
ERNAKULAM, PIN - 682020
BY ADVS.
SHRI.SAURAV B.
SMT.SAFNA P.S.
SMT.ROOPREKHA D.KAMATH
RESPONDENTS:
1 STATE OF KERALA,
REPRESENTED BY THE SECRETARY,
DEPARTMENT OF REVENUE,
GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
2 THE DISTRICT COLLECTOR,
ERNAKULAM DISTRICT, CIVIL STATION,
KAKKANAD, KOCHI, PIN - 682030
2025:KER:57449
W.P.(C) No.28215/2025
:2:
3 THE DEPUTY TAHSILDAR (RR),
KANAYANNUR, PARK AVE,
NEAR SUBHASH PARK,
MARINE DRIVE,
KOCHI, PIN - 682011.
4 THE STATE BANK OF INDIA,
REPRESENTED BY ITS BRANCH MANAGER,
SME CITY CREDIT CENTRE KOCHI,
ERNAKULAM, PIN - 682018
BY ADV.
SMT.AMMINIKUTTY, SR. GOVERNMENT PLEADER,
SRI.JITHESH MENON, SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 31.07.2025, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2025:KER:57449
W.P.(C) No.28215/2025
:3:
JUDGMENT
Dated this the 31st day of July, 2025 The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the 4th respondent-Bank to the petitioners, invoking the provisions of the Revenue Recovery Act.
2. The Bank paid ₹50,00,000/- to the petitioners as Cash Credit Facility. The petitioners state that though the petitioners made remittances promptly during the initial repayment period of the financial advance, they could not pay the instalments promptly later. The repayment of advance fell into arrears later. It happened due to reasons beyond the control of the petitioners.
3. Though the petitioners requested the Bank to permit the petitioners to repay the outstanding amounts in easy 2025:KER:57449 W.P.(C) No.28215/2025 :4: monthly instalments, the Bank authorities were not yielding. The authorities, instead, started coercive proceedings, invoking the provisions of the Revenue Recovery Act and issued demand notices.
4. The petitioners state that they are still in a position to clear the outstanding 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 petitioners. The petitioners committed default in repaying the credit facility.
6. The Bank repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately 2025:KER:57449 W.P.(C) No.28215/2025 :5: omitted to do so. In the circumstances, the Bank had no other go, than to proceed against the petitioners invoking the provisions of the Revenue Recovery Act. The impugned notices were issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted that if the petitioners are ready and willing to make a substantial payment soon and remit the balance outstanding amount immediately thereafter, 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 the petitioners as on 31.07.2024 is ₹30,69,824/-.
8. I have heard the counsel for the petitioners and the Standing Counsel representing the Bank. I have also heard the Government Pleader representing respondents 1 to 3.
2025:KER:57449 W.P.(C) No.28215/2025 :6:
9. The specific case of the petitioners is that the petitioners have been making the repayment and maintaining the loan account initially. The default in maintenance of the account 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.
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 petitioners to clear off the liability.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioners shall remit an amount of ₹5 lakhs on or before 30.08.2025.
(ii) The petitioners shall remit the balance outstanding amount in subsequent consecutive 18 equal monthly instalments thereafter, along with accruing interest and other Bank charges, 2025:KER:57449 W.P.(C) No.28215/2025 :7: if any.
(iii) If the petitioners commit default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioners in accordance with law.
(iv) If the petitioners pay the amount as directed above, any coercive proceedings against the petitioners will stand deferred.
Sd/-
N. NAGARESH JUDGE SR 2025:KER:57449 W.P.(C) No.28215/2025 :8: APPENDIX OF WP(C) 28215/2025 PETITIONERS' EXHIBITS:
Exhibit P1 TRUE COPY OF THE DEMAND NOTICE RRC NO.
2025/10664/07 DATED 16.06.2025 ISSUED BY THE 3RD RESPONDENT.