Kerala High Court
Drishya Food Products vs The Canara Bank on 25 August, 2022
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
THURSDAY, THE 25TH DAY OF AUGUST 2022 / 3RD BHADRA, 1944
WP(C) NO. 4005 OF 2022
PETITIONER:
M/S.DRISHYA FOOD PRODUCTS
REP. BY ITS PROPRIETRIX NALINI.I.K.,
AGED 56 YEARS, W/O. VIJAYAN.K., KARUMATHIL HOUSE,
28/25/01 WARRIAM LANE, PATTURAICKAL,
THRISSUR - 680 022.
BY ADVS.
N.M.MADHU
C.S.RAJANI
RESPONDENTS:
1 THE CANARA BANK,
WEST PALACE ROAD BRANCH, THRISSUR - 680 020,
REPRESENTED BY ITS BRANCH MANAGER.
2 THE AUTHORISED OFFICER
CANARA BANK, WEST PALACE ROAD BRANCH,
THRISSUR - 680 020.
BY ADVS.
PAULY MATHEW MURICKEN
ASHA JOSE
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
25.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 4005 OF 2022
2
JUDGMENT
The petitioner has approached this Court challenging
proceedings under the SARFAESI Act which have been
initiated by the Bank for recovery of the amounts due from
the petitioner.
2. The petitioner availed three loans from the
respondent Bank. One is stated to be cash credit facility,
while the other two are term loans. The tenure of the cash
credit facility and one among the term loans has expired and
the total outstanding in respect of those two loans is stated
to be Rs.31,62,468/- (Rupees thirty one lakhs sixty two
thousand four hundred sixty eight only). In respect of the 2 nd
term loan, the term is to expire in September 2024 and the
overdue amount is stated to be Rs.6,51,002/- (Rupees six
lakhs fifty one thousand and two only).
3. During the course of hearing, the petitioner has
confined the relief to an opportunity for repaying the overdue
amount of Rs.6,51,002/- (Rupees six lakhs fifty one thousand
and two only) in instalments and to obtain regularisation of
the 2nd term loan account and for an opportunity to repay the
WP(C) NO. 4005 OF 2022
total outstanding amount of Rs.31,62,468/- (Rupees thirty
one lakhs sixty two thousand four hundred sixty eight only)
due under the cash credit facility and 1 st term loan account in
instalments.
4. It was submitted on behalf of the respondent Bank
that the petitioner committed default in repayment of the
loans. It was further submitted that though proceedings for
recovery have been initiated, as a matter of indulgence, the
respondent bank is willing to accept repayment of the
overdue amount in respect of 2nd term loan account in
instalments and regularise the said loan account and is also
willing to accept repayment of the outstanding amount in
respect of the cash credit facility and 1 st term loan account in
limited instalments.
5. I have heard the learned counsel for the petitioner
as well as the learned counsel for the respondents.
6. Having regard to the circumstances of the case and
the situation now prevailing, apart from the submissions
made as recorded above, I am of the view that the petitioner
can be granted an opportunity to repay the overdue amount
of Rs.6,51,002/- (Rupees six lakhs fifty one thousand and two
only) in 10 instalments and thereafter, if the amount so
WP(C) NO. 4005 OF 2022
directed is repaid within the time as directed above, to have
the 2nd term loan regularised and that the petitioner can also
be granted an opportunity to repay the outstanding amount
of Rs.31,62,468/- (Rupees thirty one lakhs sixty two
thousand four hundred sixty eight only) due under the the
cash credit facility and 1st term loan account in 16
instalments.
7. Accordingly, there will be a direction to the
respondent Bank to accept repayment of the overdue
amount of Rs.6,51,002/- (Rupees six lakhs fifty one thousand
and two only) in respect of the 2 nd term loan account along
with accrued interest, costs and charges from the petitioner
and regularise the 2nd term loan account of the petitioner and
to accept repayment of the outstanding amount in respect of
the cash credit facility and 1st term loan account
[Rs.31,62,468/- (Rupees thirty one lakhs sixty two thousand
four hundred sixty eight only)] along with accrued interest,
costs and charges from the petitioner on the following
conditions:
i. The petitioner shall pay the overdue amount of
Rs.6,51,002/- (Rupees six lakhs fifty one thousand and
WP(C) NO. 4005 OF 2022
two only) in respect of the 2 nd term loan account along
with any accrued interest, costs and charges in 10
equated monthly instalments. The first instalment shall
be paid on or before 16.09.2022 and the subsequent
instalments shall be paid on or before the 16 th day of every
succeeding month. The petitioner shall continue to pay
the regular instalments along with the instalments as
directed above. On payment of the overdue amount in
respect of the 2nd term loan account, the same shall be
regularized.
ii. The petitioner shall pay the outstanding amount of
Rs.31,62,468/- (Rupees thirty one lakhs sixty two
thousand four hundred sixty eight only) in respect of
cash credit facility and the 1st term loan account along
with any accrued interest, costs and charges in 16
equated monthly instalments. The first instalment shall
be paid on or before 16.09.2022 and the subsequent
instalments shall be paid on or before the 16th day of
every succeeding month.
iii. In the event of default of any one instalment, the
respondent bank shall be entitled to proceed in
accordance with law.
WP(C) NO. 4005 OF 2022
iv. In order to enable the petitioner to repay the entire
amounts, all coercive proceedings shall be kept in
abeyance.
The writ petition is disposed of as above.
Sd/-
GOPINATH P.
JUDGE
DK
WP(C) NO. 4005 OF 2022
APPENDIX OF WP(C) 4005/2022
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE DEMAND NOTICE DATED
10.11.2021 ISSUED BY THE 2ND
RESPONDENT
Exhibit P2 TRUE COPY OF THE LETTER DATED
15.11.2021 ISSUED BY THE FIRST
RESPONDENT BANK
