Kerala High Court
Mir Realtors Pvt. Ltd vs The Federal Bank Limited on 2 August, 2021
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR
MONDAY, THE 2ND DAY OF AUGUST 2021 / 11TH SRAVANA, 1943
WP(C) NO. 14634 OF 2021
PETITIONER:
M/S MIR REALTORS PVT. LTD
1ST FLOOR, MM BUILDINGS, KALABHAVAN ROAD,
ERNAKULAM - 682018, REPRESENTED BY ITS MANAGING
DIRECTOR MR. ARUN KUMAR K.
BY ADVS.
ABRAHAM MATHEW (VETTOOR)
ANIL ABEY JOSE
RESPONDENTS:
1 THE FEDERAL BANK LIMITED,
REGD. OFFICE, FEDERAL TOWERS, BANK JUNCTION,
ALUVA, ERNAKULAM DISTRICT - 683101.
2 THE VICE PRESIDENT,
THE FEDERAL BANK LTD, LCRD-ERNAKULAM DIVISION,
GROUND FLOOR, FEDERAL TOWERS, MARINE DRIVE,
ERNAKULAM - 682031.
3 THE REGISTRAR,
NATIONAL COMPANY LAW TRIBUNAL, KOCHI BENCH,
KAKKANAD -ERNAKULAM - 682030.
ADV. MOHAN JACOB GEORGE
ADV. P.V.PARVATHY
ADV.REENA THOMAS
ADV. NIGI GEORGE
ADV.PAULOCHAN ANTONY SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 02.08.2021, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C) No.14634 of 2021 2
P.B.SURESH KUMAR, J.
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W.P.(C) No.14634 of 2021
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Dated this the 2nd day of August, 2021
JUDGMENT
Petitioner is a company engaged in the development
of lands and construction of residential and other buildings.
They have availed a term loan of Rs.10 crores from the first
respondent bank. The petitioner could not repay the said loan
as agreed. The bank, in the circumstances, instituted
proceedings before the Debts Recovery Tribunal for realisation
of the balance outstanding in the loan account. The bank has
also instituted proceedings before the National Company Law
Tribunal (NCLT) to initiate corporate insolvency resolution
process in respect of the petitioner company. During the
pendency of the said proceedings, the petitioner approached
the bank and offered to pay a sum of Rs.11.65 crores in
instalments. The offer made by the petitioner was accepted by
the bank and the petitioner was permitted to pay the amounts
as offered by them in graded instalments, commencing from
04.02.2021 subject to a few conditions including the condition
that the petitioner shall pay sum of Rs.8.7 lakhs due to the
bank in respect of another loan and that a compromise petition
shall be filed before the Debt Recovery Tribunal incorporating
the terms of settlement and a default clause to the effect that
the entire amounts due to the bank would become payable in
the event of default in remitting any one of the instalments.
The bank has also agreed in terms of the compromise
arrangement that on payment of the first instalment namely,
Rs.20 lakhs and Rs.8.7 lakhs referred to above, and on filing
the compromise petition, the bank would report the settlement
before the NCLT. The case of the petitioner is that though they
have complied with the terms of the compromise and has been
remitting the instalments, the bank is not reporting the
compromise before the NCLT. It is alleged by the petitioner
that on account of the said reason, the NCLT is taking steps to
admit the proceedings and in that event, the affairs of the
petitioner would come to a standstill. The petitioner, in the
circumstances, seeks appropriate directions to the NCLT to
close the proceedings pending before it as settled between the
parties.
2. Heard the learned counsel for the petitioner as
also the learned counsel for the first respondent bank.
3. The learned counsel for the bank pointed out
that the petitioner has not remitted the instalments as agreed
and as such, the compromise entered into by the petitioner
with the bank stands cancelled. It was submitted by the
counsel that it is on account of the said reason that the bank
could not report the settlement before the NCLT. It was also
submitted by the learned counsel that if the petitioner remits
the amounts payable in terms of the compromise upto
31.07.2021 with simple interest before the said date, the bank
is agreeable to revalidate the compromise and in that event,
the bank may not have any objection in seeking adjournment in
the proceedings pending before the NCLT.
4. The learned counsel for the petitioner does
not dispute the fact the amounts payable in terms of the
compromise upto date have not been paid by them. On a
query from the court, the learned counsel is not in a position to
make a commitment as to the time limit within which the
pending dues in terms of the compromise could be paid to the
bank.
5. As noted, substantial amounts running to
several crores are due to the bank from the petitioner. In a case
of this nature, I do not think that the relief sought by the
petitioner can be granted. Nevertheless, having regard to the
totality of the facts and circumstances of the case, especially
the fact that rights of parties with whom the petitioner has
entered into contract for construction of apartments and other
buildings would be affected detrimentally in the event of the
admission of the proceedings instituted before the NCLT, I
deem it appropriate to dispose of the writ petition granting
liberty to the petitioner to remit the graded instalments upto
31.08.2021 in terms of the compromise entered into between
the parties with simple interest at the rate of 11.10% on or
before 31.08.2021. Ordered accordingly. Needless to say that
if the petitioner remits the amounts as directed and continues
to pay the remaining graded instalments, the bank shall
revalidate the compromise. Needless also to say that in the
event of the petitioner remitting the amounts as directed
above and continuing to pay the remaining graded instalments,
the bank shall not pursue the proceedings pending before the
NCLT.
Sd/-
P.B.SURESH KUMAR, JUDGE.
YKB
APPENDIX OF WP(C) 14634/2021
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE IBA/11/KOB/2020
FILED BY THE 1ST RESPONDENT BEFORE THE
HON'BLE NCLT, KOCHI, DURING FEBRUARY,
2020.
Exhibit P2 A TRUE COPY OF THE ORDER PASSED BY
KRERA ON 16.11.2020.
Exhibit P3 A TRUE COPY OF THE LETTER NO.LCRD-
EKM/EKMA/SAR2904/2020-2021 ISSUED BY
THE 2ND RESPONDENT DATED 02.02.2021.
Exhibit P4 A TRUE COPY OF THE UNDATED JOINT
COMPROMISE PETITION FILED BY THE
RESPONDENT BANK AND PETITIONER OTHER
DEFENDANTS IN THE OA NO.173 OF 2020
BEFORE THE HON'BLE DRT.
Exhibit P5 A TRUE COPY OF THE DAILY ORDER PASSED
BY THE HON'BLE DEBT RECOVERY TRIBUNAL
ON 09.04.2021.
Exhibit P6 A TRUE COPY OF THE RELEVANT PAGES DAILY
ORDER PASSED BY THE HON'BLE NCLT DATED
15.12.2020.
Exhibit P7 A TRUE COPY OF THE RELEVANT PAGES OF
THE DAILY ORDER PASSED BY THE HON'BLE
NCLT DATED 04.01.2021.
Exhibit P8 A TRUE COPY OF THE RELEVANT PAGES OF
THE DAILY ORDER PASSED BY THE HON'BLE
NCLT DATED 22.01.2021.
Exhibit P9 A TRUE COPY OF THE RELEVANT PAGES OF
THE DAILY ORDER PASSED BY THE HON'BLE
NCLT DATED 05.02.2021.
Exhibit P10 A TRUE COPY OF THE RELEVANT PAGES OF
THE DAILY ORDER PASSED BY THE HON'BLE
NCLT DATED 01.03.2021.
Exhibit P11 A TRUE COPY OF THE RELEVANT PAGES OF
THE DAILY ORDER PASSED BY THE HON'BLE
NCLT DATED 15.03.2021.
Exhibit P12 A TRUE COPY OF THE RELEVANT PAGES OF
THE DAILY ORDER PASSED BY THE HON'BLE
NCLT DATED 28.04.2021.
Exhibit P13 A TRUE COPY OF THE RELEVANT PAGES OF
THE DAILY ORDER PASSED BY THE HON'BLE
NCLT DATED 02.06.2021.
Exhibit P14 A TRUE COPY OF THE RELEVANT PAGES OF
THE DAILY ORDER PASSED BY THE HON'BLE
NCLT DATED 30.01.2021.
Exhibit P15 A TRUE COPY OF THE COMMUNICATION
INTIMATING THE ORDER DATED 06.07.2021
OF THE NCLT, KOCHI ISSUED BY THE
REGISTRY TO THE PETITIONER DATED
08.07.2021.
Exhibit P16 A TRUE COPY OF THE REPRESENTATION MADE
BY THE PETITIONER TO THE 2ND RESPONDENT
DATED 28.05.2021.
Exhibit P17 A TRUE COPY OF REPRESENTATION MADE BY
THE PETITIONER BY E-MAIL TO THE CEO OF
THE 1ST RESPONDENT DATED 16.07.2021.
Exhibit P18 A TRUE COPY OF THE AFFIDAVIT FILED BY
THE 1ST RESPONDENT BEFORE THE NCLT
DATED 21.01.2020.
