Kerala High Court
M/S.Arjun Associates vs Catholic Syrian Bank on 22 July, 2021
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE A.M.BADAR
THURSDAY, THE 22ND DAY OF JULY 2021 / 31ST ASHADHA, 1943
WP(C) NO. 2681 OF 2021
PETITIONER/S:
1 M/S.ARJUN ASSOCIATES,T.P/III/286, SOUTH BAZAR,
KANNUR, KERALA, PIN-670002, REPRESENTED BY ITS
MANAGING PARTNER SRI.GEORGE T.D.
2 SRI.GEOGO T.D,S/O.DAMODHARAN, SANDRAM, S.V.COLONY
PO., KOZHIKKODE, KERALA, PIN-673006.
BY ADVS.
C.UNNIKRISHNAN (KOLLAM)
SHRI.GAJENDRA SINGH RAJPUROHIT
SMT.SREEDEVI S.
RESPONDENT/S:
1 CATHOLIC SYRIAN BANK
KANNUR BRANCH, FORT ROAD, KANNUR, KERALA, PIN-
670001, REPRESENTED BY ITS MANAGER.
2 ZONAL MANAGER,
CSB BANK, ZONAL OFFICE, ALPHONSA BUILDING,
ARAYIDATHUPALAM JUNCTION, INDIRA GANDHI ROAD,
KOZHIKKODE, KERALA, PIN-673004.
3 RESERVE BANK OF INDIA,
MAIN BUILDING, P.O.BOX 901, SHAHID BHAGAT SING
ROAD, MUMBARI, MAHARASHTRA-400001, REPRESENTED BY
THE GOVERNOR.
BY ADV SRI.C.A.JOY
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 22.07.2021, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) NO. 2681 OF 2021
-2-
A.M.BADAR, J.
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WP(C) NO. 2681 OF 2021
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Dated this the 22nd day of July, 2021
JUDGMENT
Heard both sides.
2. Following are the reliefs sought in this petition:-
"I. Issue the writ of mandamus or
other appropriate writ, order or direction
commanding the respondents No.1 and 2 to
release the original title deeds and documents
of the two properties (1) 14.36 cents of land
and building owned by the petitioner and (2)
24.767 cents of land in the name of K P
Narayanan.
II. Issue the writ of mandamus or
other appropriate writ, order or direction
commanding the respondents No.1 and 2 to
extend the validity of OTS by one month from
the date of release of the documents of two
WP(C) NO. 2681 OF 2021
properties in Ext.P6.
III. Declare that the OTS for Rs.4
crores as per Ext.P6 is valid till one month
from the date of release of title deeds of the
two properties (1) 14.36 cents of land and
building owned by the petitioner and (2)
24.767 cents of land in the name of K P
Narayanan, notwithstanding the date
31.1.2021 mentioned in Ext.P6.
IV. Issue such other reliefs that this
Hon'ble court may consider appropriate in the
nature and circumstances of the case."
2. The learned counsel appearing for the petitioners
on behalf of Adv.Sri C Unnikrishnan (Kollam), on
instructions, submits that the petitioners have obtained
private loan and shall clear the entire liability regarding the
financial facilities availed from the respondents by the end
of this month.
3. The learned counsel appearing for the
respondents drew my attention to the final order passed by
WP(C) NO. 2681 OF 2021
the learned Debt Recovery Tribunal -1, Ernakulam in O.A.
No.555 of 2015 [Ext.R1(A)]. I have perused the said
judgment. The following is the clause (a) of paragraph
No.11 of the said judgment:
"11.(a) The applicant bank shall recover
the sum of Rs.5,58,23,784.39 (Rupees five crores
fifty eight lakhs twenty three thousand seven
hundred eighty four and paise thirty nine only)
with interest on the sum of Rs.5,54,50,408.39
(Rupees five crores fifty four lakhs fifty
thousand four hundred eight and paise thirty nine
only) @13% per annum from 30.11.2015 till
realisation and also its proportionate costs from
defendants 1 to 9 jointly and severally and by
sale of 'A' to 'L' schedule immovable properties
and also from other assets, if any, succeeded to
from deceased K.P. Narayanan and which have
not been duly disposed of by defendants 4, 10
and 11, who shall be personally liable to the
extent of the value of such assets in the event of
their failure to satisfactorily account for the
same."
4. The petitioners herein had submitted
a compromise proposal on 24.12.2020 and the same came
WP(C) NO. 2681 OF 2021
to be accepted by the respondents vide communication
Ext.P6.
5. It is worthwhile to reproduce paragraph Nos.1, 2
and 4 of this compromise proposal of the petitioner
accepted by the respondent bank as below:-
"With reference to the above, Sanction is
accorded to settle the above account under OTS by
remitting Rs.400.00 (Rupees four hundred lakh
only), towards full and final settlement. Of the
above, Rs.225.00 lakh to be remitted on or before
31.12.2020 and the balance amount of Rs.175.00
lakh to be remitted on or before 31.01.2021.
Sanction is also accorded for release of
two properties (1) 14.36 cents of land and
building owned by Geego T.D. (2) 24.767 cents of
land in the name of K P Narayanan on payment of
Rs.225.00 lakh subject to the compliance of
following conditions:
1. Consent letter for release of the aforesaid
security properties should be signed by all the
parties to the suit/translation in the presence
of authorized officer as per the prescribed
WP(C) NO. 2681 OF 2021
format.
2. Suits filed against the bank should be
withdrawn.
3. Consent of legal heirs of
Late.Smt.Karthyani should be obtained.
4. Release of title deeds will be done after
obtaining from DRT and the same will be
released to mortgagors/legal heirs of the
deceased mortgagor.
This sanction is valid only upto
31.1.12021 subject to the remittance of
Rs.225.00 lakh on or before 31.12.2020 and the
same will automatically get cancelled if the party
failed to remit the same. Balance amount of
Rs.175 lakh should be remitted on or before
31.1.2021 and any part payments made will be
adjusted towards the dues and the bank will
proceed for recovery of the dues."
Thus it is clear that the petitioners were granted the benefit
of one time settlement by accepting to receive Rs.400 lakhs
by the respondents in two instalments, the last instalment of
Rs.175 lakhs was to be paid on or before 31.1.2021. This
was with a caveat that the sanction to OTS is valid only
upto 31.1.2021 and the sanction will automatically lapse. It
WP(C) NO. 2681 OF 2021
is further clarified in the sanction letter Ext.P6 that the
balance amount of Rs.175 lakhs was to be remitted on or
before 31.1.2021. It is pointed out by the learned counsel
for the respondents that the petitioners had failed to avail
the benefit of OTS as communicated by Ext.P6, as they
failed to remit Rs.175 lakhs on or before 31.1.2021. He
therefore submits that now the petitioners are required to
pay the entire amount as ordered by the learned DRT vide
judgment Ext.R1(A). My attention is also drawn to the
judgment of this court in W.P.(C) No.13722 of 2020
Ext.R1(B), by which this court was pleased to dismiss the
petition seeking stay of recovery proceedings by holding
that the judgment of learned DRT has attained finality.
6. The duly sworn testimony of the respondents
shows that original title deeds and documents in respect of
two properties as mentioned in clause (1) of the petition,
were released way back on 11.2.2021. The prayer clause
No.(2) is in respect of extention of validity of OTS by one
month from the date of release of documents of the two
WP(C) NO. 2681 OF 2021
properties mentioned in Ext.P6. The documents in respect
of those properties were already released on 11.2.2021 and
the period of one month from 11.2.2021 is also lapsed now.
The prayer No.3 is regard to the declaration that OTS for
Rs.4 crores as per communication Ext.P6 is valid till one
month on the date of release of the title deeds of the two
properties mentioned therein. This relief is now turns to be
purely academic, because a period of one month from the
date of release of those documents is already elapsed.
In this view of the matter, with passage of time,
this petition has rendered infructuous. The same is,
accordingly, closed.
sd
A.M.BADAR, JUDGE.
dl/
WP(C) NO. 2681 OF 2021
APPENDIX OF WP(C) 2681/2021
PETITIONER EXHIBITS
EXHIBIT P1 TRUE PHOTOSTAT COPY OF THE NOTICE DATED
31.03.2015 ISSUED BY THE CSB BANK TO THE
PETITIONERS.
EXHIBIT P2 TRUE PHOTOSTAT COPIES OF THE NOTICE FOR
SETTLING A SALE PROCLAMATION DATED
20.06.2018.
EXHIBIT P3 TRUE COPIES OF THE LETTERS ISSUED BY THE
RESPONDENT BANK ON VARIOUS INSTANCES
REJECTING THE REPRESENTATIONS OF THE
PETITIONER.
EXHIBIT P4 A TRUE COPY OF THE LETTER DATED
14.10.2020 ISSUED BY THE ZONAL MANAGER
OF THE RESPONDENT BANK.
EXHIBIT P5 A TRUE COPY OF THE REPRESENTATION DATED
24.12.2020.
EXHIBIT P6 A TRUE COPY OF THE REPLY LETTER DATED
29.12.2020.
EXHIBIT P7 TRUE COPIES OF THE CONSENT LETTER,
PAYMENT DETAILS DATED 30.12.2020 AND
31.12.2020 RESPECTIVELY.
EXHIBIT P8 A TRUE COPY OF THE REPRESENTATION DATED
12.01.2021.
WP(C) NO. 2681 OF 2021
RESPONDENTS EXHIBITS:
EXHIBIT R1A TRUE COPY OF THE FINAL ORDER DATED
19.2.2018 IN OA 555/2015 OF THE DEBT
RECOVERY TRIBUNAL 1, ERNAKULAM
EXHIBIT R1B A TRUE COPY OF THE JUDGMENT IN WP(C)
13722/2020 DATED 8.7.2020
