U. S. Abhilash vs Authorised Officer
2022 Latest Caselaw 8008 Ker

        IN THE HIGH COURT OF KERALA AT ERNAKULAM
                        PRESENT
          THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 29TH DAY OF JUNE 2022 / 8TH ASHADHA, 1944
                 WP(C) NO. 5290 OF 2022
PETITIONER:

         U. S. ABHILASH,
         AGED 46 YEARS
         (PROPRIETOR NIYA SUPERMARKET), S/O. LATE P.K.
         UPENDRAN, PATTEKKATTU HOUSE, NJARAKULANGARA,
         MANNANCHERRY P.O., ALAPPUZHA-688538.
         BY ADV GOKUL DAS V.V.H.

RESPONDENTS:

    1    AUTHORISED OFFICER,
         THE CHIEF MANAGER (AUTHORIZED OFFICER), STATE
         BANK OF INDIA, RASMEC ALAPPUZHA, 1ST FLOOR,
         KALLUPALATHIL BUILDING, CSB ROAD, IRON BRIDGE
         P.O., ALAPPUZHA-688012.
    2    THE BRANCH MANAGER,
         STATE BANK OF INDIA, PATHIRAPPALLY BRANCH, P.B.
         NO. 1, PATHIRAPPALLY P.O., ALAPPUZHA-688521.
         BY ADVS.
         PREETHI. P.V.
         M.V.BALAGOPAL
         DEEPA NARAYANAN
         T.SETHUMADHAVAN (SR.)

         ADV. JITHESH MENON, SC



THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 29.06.2022, THE COURT ON THE
SAME DAY DELIVERED THE FOLLOWING:
 W.P.(C) No.5290/2022
                                  2



                          JUDGMENT

Dated this the 29th day of June, 2022

The petitioner, who is running a Supermarket at Kalavoor

in Alappuzha District, is before this Court seeking to quash

Ext.P1 and Ext.P2 notices.

2. The petitioner states that he is running a

Supermarket and for the business, he availed a term loan

facility of Rs.17 lakhs from the 2 nd respondent on 13.08.2018.

The loan was secured by pledging a property having an extent

of 8.09 Ares along with a residential building thereon. Due to

Covid-19 pandemic and subsequent financial distress, the

Supermarket run by the petitioner suffered substantial losses.

Consequently, the loan amount could not be repaid to the

respondent-Bank.

3. The petitioner states that the respondents thereafter

initiated coercive proceedings invoking the provisions of the

SARFAESI Act and now the 1st respondent is taking hasty steps

to move the Chief Judicial Magistrate's Court, Alappuzha

invoking Section 14 of the SARFAESI Act, for taking over W.P.(C) No.5290/2022

vacant possession of the building.

4. The petitioner states that there is no deliberate

default on his part in making repayment of loan amount and the

repayments were defaulted for reasons absolutely beyond the

control of the petitioner. If the petitioner is granted a breathing

time to repay the amount, he will be able to clear the entire loan

account. The respondents are now trying to takeover the

possession of his residential building.

5. Standing Counsel entered appearance and resisted

the writ petition. Standing Counsel submits that in spite of

repeated notices to the petitioner, he did not care to settle the

loan account. Consequently, the loan account was declared as

NPA. The respondents have invoked SARFAESI proceedings

and acted only in accordance with the provisions of the Act.

The writ petition is not maintainable, contended the learned

Standing Counsel. It is submitted by the learned Standing

Counsel that if the petitioner is ready to remit the entire

outstanding amount, he can be given a very short breathing

time.

W.P.(C) No.5290/2022

6. I have heard the learned counsel for the petitioner

and the learned Standing Counsel for the respondents.

7. The petitioner had taken the loan in the year 2018.

The loan amount was Rs.17 lakhs. Due to Covid-19 pandemic,

the petitioner's Supermarket suffered huge losses as in the

case of other businesses. It is in these circumstances that the

petitioner is now before this Court, seeking time for repayment

of loan amount.

8. In view of the facts urged in the Court and the

pleadings in the writ petition, this Court is of the view that the

petitioner may be granted reasonable time to clear off the entire

liability.

9. In such circumstances, the writ petition is disposed of

with the following directions:

(1) The petitioner shall deposit an amount of Rs.3,00,000 (Rupees Three lakhs only) within a period of two weeks from today.

(2) The balance amount payable by the petitioner along with accruing interest and all other charges, shall be paid in 12 equal consecutive monthly instalments thereafter.

W.P.(C) No.5290/2022

(3) If the petitioner remits the payments as directed above, all coercive proceedings against the petitioner and the sureties shall stand deferred.

(4) If the petitioner commits any default in making the payments as directed, the respondents will be at liberty to proceed against the petitioner, in accordance with law.

Sd/-

N. NAGARESH JUDGE AJ W.P.(C) No.5290/2022

APPENDIX OF WP(C) 5290/2022

PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE DATED 23/11/2021 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 13(2) OF THE SARFAESI ACT.

Exhibit P2 TRUE COPY OF THE NOTICE DATED 04/02/2022 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 13(4) OF THE SARFAESI ACT READ WITH RULE 8 OF THE SECURITY INTEREST (ENFORCEMENT) RULES, 2002.