Shaji Lal S.L vs State Of Kerala
2021 Latest Caselaw 4082 Ker

               IN THE HIGH COURT OF KERALA AT ERNAKULAM

                               PRESENT

                 THE HONOURABLE MR. JUSTICE A.M.BADAR

    THURSDAY, THE 04TH DAY OF FEBRUARY 2021 / 15TH MAGHA,1942

                       WP(C).No.2841 OF 2021(E)


PETITIONER:

               SHAJI LAL S.L
               AGED 44 YEARS
               S/O.SELVARAJ, LAL NIVAS, REVATHI BUILDING, PALAM JN.
               KARAKULAM P.O., THIRUVANANTHAPURAM 695 564

               BY ADVS.
               SRI.S.JATHIN DAS
               SMT.S.SOUMYA ISSAC

RESPONDENTS:

      1        STATE OF KERALA
               REP.BY ITS SECRETARY, REVENUE DEPARTMENT, GOVERNMENT
               SECRETARIAT, THIRUVANANTHAPURAM 695 001.

      2        DISTRICT COLLECTOR
               COLLECTORATE, CIVIL STATION, KUDAPPANAKUNNU,
               THIRUVANANTHAPURAM 695 043

      3        SPECIAL THAHASILDAR
               LAND ACQUISITION, COLLECTORATE, THIRUVANANTHAPURAM
               695 043

      4        THE SECRETARY
               PUBLIC WORK DEPARTMENT, SECRETARIAT,
               THIRUVANANTHAPURAM 695 001.

      5        ASSISTANT EXECUTIVE ENGINEER
               PUBLIC WORK DEPARTMENT, ROAD SUB DIVISION,
               NEDUMANGADU, THIRUVANANTHAPURAM 695 541

      6        VILLAGE OFFICER
               KARAKULAM VILLAGE, THIRUVANANTHAPURAM 695 564

      7        THE FEDERAL BANK LTD.
               ASSET RECOVERY BRANCH, FEDERAL TOWERS, STATUE,
               THIRUVANANTHAPURAM 695 001, REP.BY ITS AUTHORIZED
               OFFICER

      8        THE BRANCH MANAGER
               FEDERAL BANK LTD., PEROORKADA BRANCH, S.R.PLAZA,
 WP(C).No.2841 OF 2021(E)

                               2

             CALVARY, LUTHERAN CHURCH, PEROORKADA,
             THIRUVANANTHAPURAM 695 005




             GP-- POOJA SURENDRAN .

     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
04.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C).No.2841 OF 2021(E)

                                   3

                              JUDGMENT

Dated this the 4th day of February 2021

Heard the learned counsel for the petitioner.

2. The petitioner has availed loan of Rs.84,00,000/- from the

7th and 8th respondent Banks. This was for money lending business of

the petitioner. Petitioner defaulted in repayment of loan. It was

declared as an non-performing asset and proceedings under the

SARFAESI Act was taken by the secured creditor, ie, the 7 th and 8th

respondents. The petitioner approached this Court with a prayer for

grant of installments for repayment of loan. Writ petition bearing No.

WP(C) 636 of 2020 was favourably considered by this Court and

petitioner was permitted to clear of the loan in installments. The said

order could not be complied by the petitioner allegedly due to

pandemic Covid-19. Now, according to the petitioner the State

Government has declared its intention to acquire the secured asset for

road widening scheme. With this, it is averred in the petition that now

the secured creditor cannot recover the secured asset in the light of

issuance of Ext.P6 communication regarding acquisition of the

property for road widening.

3. Heard the learned counsel for the petitioner. He argued

that because of the pandemic, the earlier order of the Court could not WP(C).No.2841 OF 2021(E)

be complied and as of now the property is put up for acquisition, the

secured creditor cannot take any steps in respect of that secured

asset. The learned counsel further argued that the petitioner be given

installment facility for clearing the loan.

4. I have considered the submissions so advanced and

perused the also materials placed before me.

5. Earlier, writ petition bearing WP(C) No. 636/2020 filed by

the petitioner was decided by this Court on 13.01.2020 with the

following operative order.

(i) The petitioner, to prove bonafides, shall immediately deposit an amount not less than Rs.3 lakhs with the respondents on or before 15.01.2020.

(ii) The competent official of the respondent Bank shall thereafter immediately furnish a comprehensive and authenticated statement of accounts pertaining to the above said loan transaction to the petitioner, showing the details and the precise balance overdues to be cleared by the petitioner for regularizing the loan account.

(iii) Thereafter the petitioner will be given time to clear the balance overdues for regularizing the loan account to be paid in equal monthly installments starting from 10.02.2020 onwards. This will be inclusive of payment of all applicable charges and interest and the petitioner should also pay regular EMIs in time. Subject to these conditions further proceedings may be kept in abeyance by the respondent until then.

(iv) However, in case the petitioner does not comply with any one of the conditions including the condition to pay the above said amount of Rs.3 lakhs on or before 15.01.2020, then the respondent WP(C).No.2841 OF 2021(E)

Bank will be at liberty to proceed further with the impugned proceedings from the stage where it has stopped. It is made clear that the proceedings in MC No. 1454/2019, on the file of the Chief Judicial Magistrate Court, Thiruvananthapuram may be kept in abeyance so that in case of default, the said proceedings could be recommended.

7. Perusal of this order makes it clear that petitioner was

permitted to clear the outstanding amount in installments apart from

payment of regular EMIs. Undisputedly, this order was not complied

by the petitioner. The petitioner is not entitled for further discretionary

relief from this Court.

8. So far as subjecting the secured asset for acquisition by the

State Government is concerned, the same has no relevance on the

case of the petitioner. The petitioner cannot be concerned with the

same in any manner and it is for the secured creditor to look after the

issue of acquisition of property which is a secured asset under the

SARFAESI Act.

The petition as such is devoid of any merit and the same is

dismissed.

Sd/-

A.M.BADAR Nsd //true copy// JUDGE PA to Judge WP(C).No.2841 OF 2021(E)

APPENDIX PETITIONER'S/S EXHIBITS:

EXHIBIT P1 TRUE COPY OF LOAN STATEMENT BEARING NO.14167600002324 ISSUED BY THE RESPONDENT BANK

EXHIBIT P2 TRUE COPY OF PAYMENT SCHEDULE ISSUED BY THE RESPONDENT BANK

EXHIBIT P3 TRUE COPY OF LETTER DATED 17.7.2018 SUBMITTED BY THE PETITIONER BEFORE THE INSPECTING ASSISTANT COMMISSIONER.

EXHIBIT P4 TRUE COPY OF JUDGMENT DATED 13.1.2020 IN W.P.(C).NO.636/2020 OF THIS HON'BLE COURT.

EXHIBIT P5 TRUE COPY OF LETTER DATED 17.6.2020 SUBMITTED BY THE PETITIONER BEFORE THE RESPONDENT BANK.

EXHIBIT P6 TRUE COPY OF LETTER DATED 19.6.2020 ISSUED BY THE ASSISTANT EXECUTIVE ENGINEER, PWD WITH ENGLISH TRANSLATION.

EXHIBIT P7 TRUE COPY OF GAZETTE NOTIFICATION DATED 30.10.2020 PUBLISHED BY THE GOVERNMENT.

EXHIBIT P8 TRUE COPY OF REPRESENTATION DATED 27.1.2021 MADE BY THE PETITIONER BEFORE THE 7TH AND 8TH RESPONDENTS.

EXHIBIT P9 TRUE COPY OF AFFIDAVIT DATED 27.1.2021 SWORN BY THE PETITIONER BEFORE THE 7TH AND 8TH RESPONDENTS.