Shabir V.A vs Reserve Bank Of India
2022 Latest Caselaw 1848 Ker

           IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                  PRESENT
         THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN
 FRIDAY, THE 18TH DAY OF FEBRUARY 2022 / 29TH MAGHA, 1943
                       WP(C) NO. 29567 OF 2021
PETITIONER/S:

               SHABIR V.A., AGED 32 YEARS
               S/O.ABDUL KADER, VALIYAVEETTIL POOTHOKKIL HOUSE,
               THOYAKKAVU P.O., THRISSUR, PIN - 680 513.
               BY ADVS.
               MATHEW KURIAKOSE
               J.KRISHNAKUMAR (ADOOR)


RESPONDENT/S:

    1          RESERVE BANK OF INDIA
               REPRESENTED BY GENERAL MANAGER (OIC), BANERJI
               ROAD, ERNAKULAM NORTH, KALOOR, ERNAKULAM - 682
               018.
    2          THE FEDERAL BANK LTD.
               ZONAL OFFICE, FEDERAL TOWERS, (1ST FLOOR),
               MARINE DRIVE, ERNAKULAM - 682 031 REPRESENTED BY
               ITS DEPUTY VICE PRESIDENT.
    3          THE SENIOR BRANCH MANAGER
               THE FEDERAL BANK LTD., GURUVAYUR BRANCH, RV
               TOWER, EAST NADA, GURUVAYUR, THRISSUR - 680 101.
               BY ADV K.P.SUJESH KUMAR

        THIS    WRIT   PETITION     (CIVIL)    HAVING    COME    UP    FOR
ADMISSION       ON   18.02.2022,    THE     COURT   ON   THE    SAME   DAY
DELIVERED THE FOLLOWING:
                                                     -2-
W.P.(C). No. 29567 of 2021



                             P.V.KUNHIKRISHNAN, J.
                              =================================================

                             W.P. (C) No. 29567 of 2021
                       =============================================================

                 Dated this the 18th day of February, 2022

                                        JUDGMENT

The above writ petition is filed with following prayers:

"i. Issue a writ of certiorari or any other writ order or direction quashing Exhibit P5 auction notice as far as the loan accounts of the petitioner as mentioned in Ext.P1 notice, and gold items pledged therein.

ii. Issue a writ of mandamus or any other writ, order or direction commanding respondent nos. 2 and 3 to grand three month's time to the petitioner to discharge the liability in his gold loan transactions mentioned in Ext.P1 notice; and in the meanwhile not to conduct the auction sale of the gold items pledged in those transactions.

iii. Issue a writ of mandamus or any other writ, order or direction commanding respondent no.1 to conduct an enquiry as to whether the auction proceedings

W.P.(C). No. 29567 of 2021

initiated by the 2nd respondent as per Exhibit P5 auction notice is in conformity with the RBI guidelines and directives; and to take remedial actions if so warranted.

iv. Issue such other appropriate writ, order or direction which this Hon'ble Court may deem fit in the circumstances of the case.

v. award costs of these proceedings to the petitioner."

(Sic)

2. The petitioner is aggrieved by the recovery steps

initiated by 2nd and 3rd respondents and to conduct auction sale

of the gold items pledged by the petitioner for availing two gold

loans. It is the case of the petitioner that huge amount is due to

the petitioner from the State Government as evident by Ext.P3

proceedings from the Special Tahsildar (LA) General Thrissur

to the District Collector, Thrissur. It is the specific case of the

petitioner that immediately on receipt of the amount based on

W.P.(C). No. 29567 of 2021

Ext.P3, the amount due to the Bank will be cleared. The

counsel for the petitioner submitted that the petitioner will clear

the amount on or before 31.03.2022, which is the financial year

ending date.

3. Heard the learned counsel for the petitioner and the

learned Standing Counsel appearing for respondents 2 and 3.

4. The counsel for the petitioner reiterated his

contentions in the writ petition. The learned Standing Counsel

appearing for respondents 2 and 3 submitted that about 98 lakhs

is due to the Bank from the petitioner and so far no amount is

paid. The counsel submitted that as far as the Bank is

concerned they want only the amount due.

5. On the other hand, the counsel for the petitioner

submitted that admittedly, sufficient security is there with the

Bank by way of gold and it is gold loan. If time is granted till

W.P.(C). No. 29567 of 2021

31.03.2022, that will not create any problem to the respondent

Bank. Considering the facts and circumstances of the case and

also considering the fact that it is gold loan, I think time can be

granted till 31.03.2022.

6. Moreover, when this writ petition came up for

consideration on 20.12.2021, this Court granted the following

order:

"Admit.

Standing Counsel takes notice for R1. Issue urgent notice by speed post to R2 and R3.

There will be an interim order as prayed for."

7. There is no counter affidavit filed so far in this writ

petition. Therefore, considering the facts and circumstances of

the case, this writ petition can be disposed of in the following

manner:

1. The petitioner is free to pay the amount due to the

W.P.(C). No. 29567 of 2021

respondents 2 and 3 on or before 31.03.2022.

2. All further proceedings as against the petitioner pursuant to Ext.P5 shall be kept in abeyance till 31.03.2022.

3. If no amount is paid as directed above till 31.03.2022, the respondents are free to proceed with the recovery steps, in accordance to law.

sd/-

P.V.KUNHIKRISHNAN JUDGE das

W.P.(C). No. 29567 of 2021

APPENDIX OF WP(C) 29567/2021

PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE DATED 01/12/2021 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER.

Exhibit P2 TRUE COPY OF THE GAZETTE NOTIFICATION DATED 15/01/2021 IN RESPECT OF THE LAND ACQUISITION PROCEEDINGS OF THE PROPERTY OF M/S.BOSINO INTERNATIONAL PRIVATE LTD.

Exhibit P3 TRUE COPY OF THE COMMUNICATION DATED 25/11/2021 ISSUED BY THE SPECIAL TAHSILDAR LA GENERAL, THRISSUR TO THE EXECUTIVE ENGINEER, CPWD, THRISSUR CENTRAL DIVISION, THRISSUR.

Exhibit P3A TRUE COPY OF THE COMMUNICATION DATED 25/11/2021 ISSUED BY THE SPECIAL TAHSILDAR LA GENERAL, THRISSUR TO THE DISTRICT COLLECTOR, THRISSUR ALONG WITH THE CALCULATION STATEMENT OF ESTIMATED AMOUNT OF COMPENSATION. Exhibit P4 TRUE COPY OF THE SIGNATORY DETAILS OF M/S.BOSINO INTERNATIONAL PRIVATE LTD. Exhibit P5 TRUE COPY OF THE AUCTION SALE NOTICE DATED 14/12/2021 PUBLISHED BY THE 2ND RESPONDENT.