Kerala High Court

Naveen Mathew Philip vs M/S. South Indian Bank Ltd on 31 August, 2022

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
                 THE HONOURABLE MR. JUSTICE GOPINATH P.
     WEDNESDAY, THE 31ST DAY OF AUGUST 2022 / 9TH BHADRA, 1944
                        WP(C) NO. 30238 OF 2021
PETITIONER/S:

    1     NAVEEN MATHEW PHILIP,
          AGED 39 YEARS ,
          S/O. PHILIP MATHEW, PROPRIETOR M/S. PHILIP GRANO
          PRODUCTS, NOOROMAVU P.O. MALLAPPALLUY WEST
          PATHANAMTHITTA 689 589,
          THEKKENEDUMPLAKKAL HOUSE, MALLAPPALLY WEST, P.O.
          PATHANAMTHITTA 689 585.

    2     MRS. CLEA JOSE,
          W/O. NAVEEN MATHEW PHILIP,
          THEKKENEDUMPLAKKAL HOUSE, MALLAPPALLY WEST, P.O.
          PATHANAMTHITTA 689 585.

    3     MRS. MARY PHILIP,
          W/O. PHILIP MATHEW, 11/165,
          THEKKENEDUMPLAKKAL HOUSE, MALLAPPALLY WEST, P.O.
          PATHANAMTHITTA 689 585.

    4     M/S. PEEGE AGRREGATES PRIVATE LTD,
          REPRESENTED BY ITS MANAGING DIRECTOR NAVEEN PHILIP,
          11/165, THEKKENEDUMPLAKKAL HOUSE, MALLAPPALLY WEST,
          P.O. PATHANAMTHITTA 689 585.

    5     M/S. NPM GRANITES PVT. LTD.,
          REPRESENTED BY ITS MANAGING DIRECTOR NAVEEN MATHEW
          PHILIP, 11/165,
          THEKKENEDUMPLAKKAL HOUSE, MALLAPPALLY WEST, P.O.
          PATHANAMTHITTA 689 585.

    6     M/S. P.G ROCK AND CONCRETE PRODUCTS PVT. LTD,
          REPRESENTED BY ITS MANAGING DIRECTOR NAVEEN MATHEW
          PHILIP, 126/V,
          THEKKENEDUMPLAKKAL HOUSE, OPP. CMS LP SCHOOL,
          MALLAPPALLY WEST, P.O. PATHANAMTHITTA 689 585.

          BY ADVS.
          P.HARIDAS
          BIJU HARIHARAN
          P.C.SHIJIN
          RISHIKESH HARIDAS
 W.P (C) Nos.30238/2021 & 30450/2021   -2-



RESPONDENTS:

      1       M/S. SOUTH INDIAN BANK LTD.,
              REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR,
              REGISTERED OFFICE, SIB HOUSE T.B. ROAD, MISSION
              QUARTERS, THRISSUR 680 001.

      2       THE REGIONAL MANAGER,
              M/S. SOUTH INDIAN BANK LTD., 2ND FLOR, TMJ COMPLEX,
              RAMANCHIRA, THIRUVALLA, 689 107.

      3       THE MANAGER,
              M/S. SOUTH INDIAN BANK LTD., MALLAPPALLY BRANCH,
              KARAKKAL BUILDING , CENTRAL JUNCTION, MALLAPALLY WEST
              P.O., PATHANAMTHITTA 689 585.

              BY ADVS.
              SUNIL SHANKER
              KEVIN VARGHESE JACOB


      THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
31.08.2022, ALONG WITH WP(C).30450/2021, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
 W.P (C) Nos.30238/2021 & 30450/2021     -3-

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                      PRESENT
                  THE HONOURABLE MR. JUSTICE GOPINATH P.
      WEDNESDAY, THE 31ST DAY OF AUGUST 2022 / 9TH BHADRA, 1944
                            WP(C) NO. 30450 OF 2021
PETITIONERS:

      1       NAVEEN MATHEW PHILIP,
              AGED 39 YEARS
              S/O.PHILIP MATHEW, THEKKENEDUMPLAKKAL HOUSE,
              MALLAPPALLY WEST P.O., PATHANAMTHITTA, PIN-689 585.

      2       MRS. CLEA JOSE,
              W/O.NAVEEN MATHEW PHILIP, THEKKENEDUMPLAKKAL HOUSE,
              MALLAPPALLY WEST P.O., PATHANAMTHITTA, PIN-689 585.

              BY ADVS.
              P.HARIDAS
              BIJU HARIHARAN
              P.C.SHIJIN
              RISHIKESH HARIDAS


RESPONDENTS:

      1       M/S. SOUTH INDIAN BANK LTD.,
              REPRESENTED BY ITS CHAIRMAN & MANAGING DIRECTOR,
              REGISTERED OFFICE, SIB HOUSE, TB ROAD,M MISSION
              QUARTERS, THRISSUR-680 001.

      2       THE REGIONAL MANAGER, M/S. SOUTH INDIAN BANK LTD.,
              2ND FLOOR, TMJ COMPLEX, RAMANCHIRA, THIRUVALLA-689 107.

      3       THE MANAGER, M/S. SOUTH INDIAN BANK LTD.,
              MALLAPPALLY BRANCH, KARAKKAL BUILDING CENTRAL JUNCTION,
              MALLAPALLY WEST P.O., PATHANAMTHITTA, PIN-689 585.

              BY ADVS.
              SUNIL SHANKER
              VIDYA GANGADHARAN


      THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
31.08.2022, ALONG WITH WP(C).30238/2021, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
 W.P (C) Nos.30238/2021 & 30450/2021       -4-

                                  JUDGMENT

These writ petitions have been filed challenging the proceedings initiated

under the Securitisation and Reconstruction of Financial Assets and Enforcement of

Security Interest Act (hereinafter referred to as the SARFAESI Act) to recover the

amounts due from the petitioner. Some among the facilities which relate to the

business of the petitioner and are subject matter of W.P (C) No.30238/2021. The

demand which is subject matter of W.P (C) No.30450/2021 is in respect of a

housing loan availed by the petitioner and a Kissan Credit Card Loan. The

petitioner has, pursuant to interim orders issued by this court from time to time,

made some payment towards the loan liability. After giving credit of amounts so

paid by the petitioner, the loan account which is subject matter of W.P (C)

No.30238/2021, has an overdue amount of Rs.1,38,88,000/- while the overdue in

respect of the Kissan Credit Card Loan is stated to be Rs.30,36,000/-. There is

presently there is no overdue in respect of housing loan. However, it is the

submission of the learned counsel appearing for the respondent that since the other

loans of the petitioner are in default, the fact that there is no overdue in respect of

housing loan, is not a factor that can be taken into consideration, as when other

loans became NPA the housing loan will also have to be treated as NPA.

2. The learned counsel appearing for the petitioner in these cases would

submit that if reasonable opportunity is given to the petitioner to clear the overdue

installments together with the regular EMI, the petitioner will be in a position to

settle the entire claims of the respondent bank.

3. Having heard the learned counsel for the petitioner and the learned

counsel appearing for the respondent bank and considering the fact that the

petitioner had paid nearly Rs.1.30 Crores towards the loan liability pursuant to

interim directions issued by this court in these writ petitions from time to time, I

am of the opinion that a reasonable opportunity can be granted to the petitioner to

clear the liabilities in installments. The petitioner will also have to service the loans

by paying the monthly EMIs in respect of the each of the loans. These writ petitions

are therefore disposed of in the following directions;

(i) The petitioner shall pay the overdue amount of Rs.1,38,88,000/- in

respect of the business loan availed by the petitioner which is subject

matter of W.P (C) No.30238/2021 together with any accrued interest

and costs in twenty (20) equated monthly instalments. The petitioner

shall also pay the regular EMIs in respect of all loans which are

subject matter of W.P (C) No.30238/2021 without fail;

(ii) The overdue amount in respect of Kissan Credit Card loan

Rs.30,36,000/- shall be repaid in twenty (20) equated installments

together with any accrued interest and costs along with regular EMIs

due in respect of Kissan Credit Card loan and the EMIs due on the

housing loan without any fail;

(iii) The first instalment of all the loans shall be paid on or before 30-09-

2022 and the subsequent instalments shall be paid on the last

working day of every succeeding month;

(iv) In case of default of any one installment in respect of any loan which

is subject matter of these writ petitions the respondent bank will be

free to proceed against the petitioner in accordance with law;

(v) In order to enable the petitioner to repay the entire amounts, all