S.R. Educational And Charitable ... vs South Indian Bank
2023 Latest Caselaw 111 Ker

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
                 THE HONOURABLE MR. JUSTICE GOPINATH P.
        FRIDAY, THE 6TH DAY OF JANUARY 2023 / 16TH POUSHA, 1944
                        WP(C) NO. 41727 OF 2022
PETITIONER/S:

            S.R. EDUCATIONAL AND CHARITABLE TRUST
            REPRESENTED BY ITS CHAIRMAN R. SHAJI
            AKATHUMURI, VARKALA
            THIRUVANANTHAPURAM, PIN - 695318
            BY ADVS.
            K.DHRUV KUMAR
            SHAKTHI PRAKASH


RESPONDENT/S:

    1       SOUTH INDIAN BANK
            REPRESENTED BY ITS AUTHORISED OFFICER ( CHIEF MANAGER)
            TC 31/151, YWCA BUILDING, 3RD FLOOR,
            M.G. ROAD, STATUE JUNCTION
            THIRUVANANTHAPURAM, PIN - 695001
    2       ASSET RESTRUCTURING COMPANY (INDIA) LTD. (ARCIL)
            REPRESENTED BY IT'S VICE PRESIDENT
            THE RUBY, 10TH FLOOR, 29,
            SENAPATI BAPAT MARG, DADAR (W)
            MUMBAI, PIN - 400028



            ADV. SUNIL SHANKAR (SC)


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
06.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 41727 OF 2022            2




                               JUDGMENT

Petitioner had availed a loan from the 1 st respondent bank

and on default being committed, the account was declared as a

Non Performing Asset and the loan portfolio has been assigned

to the 2nd respondent under Section 5 of the SARFAESI Act.

2. Learned counsel appearing for the petitioner would

submit that there is a dispute regarding the amount, which was

outstanding on the date of assignment, to the 2 nd respondent. It

is submitted that the documents now available to the petitioner

will suggest that the assignment was made showing an amount

larger than the amount actually payable by the petitioner, as

due from the petitioner. It is submitted that despite several

requests, the 1st respondent bank has not given a proper

statement of accounts to the petitioner. It is submitted that the

2nd respondent has offered a One Time Settlement to the

petitioner, taking the amount stated by the 1 st respondent as

due from the petitioner on the date of assignment, which is not

the correct figure.

3. Learned counsel appearing for the respondents

would submit that the petitioner cannot dispute the amounts in

a writ petition under Article 226 of the Constitution of India. It

is submitted that if the petitioner has any dispute regarding the

amounts, it is for the petitioner to avail statutory remedies

before the Debts Recovery Tribunal. It is submitted that the

statement of accounts can be issued to the petitioner on

request being made.

4. Having heard the learned counsel appearing for the

petitioner and the learned counsel appearing for the

respondents, I am clearly of the opinion that there is

considerable merit in the contention taken by the respondents

that the question as to whether the amounts payable by the

petitioner on the date of assignment were correctly recorded by

the bank or not is a question that cannot be adjudicated in a

writ petition under Article 226 of the Constitution of India. If

the petitioner has any grievance regarding the amounts, it is for

the petitioner to raise its contentions before the Debts

Recovery Tribunal.

Accordingly, this writ petition is dismissed. However, it is

directed that the 1st respondent shall forthwith issue statement

of accounts in respect of the loan account of the petitioner (till

the date of assignment) to the 2nd respondent in furtherance of

Ext.P7 request made by the petitioner.

Sd/-

GOPINATH P.

JUDGE ajt

APPENDIX OF WP(C) 41727/2022

PETITIONER EXHIBITS Exhibit-P1 TRUE COPY OF TENDER CUM SALE NOTICE DATED 30/01/2021 Exhibit-P2 TRUE COPY OF TENDER CUM SALE NOTICE DATED 12/03/2021 Exhibit-P3 TRUE COPY OF TENDER CUM SALE NOTICE DATED 19/03/2021 Exhibit-P4 TRUE COPY OF RELEVANT PORTION OF ASSIGNMENT AGREEMENT DATED 16/07/2021 Exhibit-P5 TRUE COPY OF THE STATEMENT DATED 03/08/2022 Exhibit-P6 TRUE COPY OF THE STATEMENT DATED 19/11/2022 Exhibit-P7 TRUE COPY OF THE LETTER DATED 29/11/2022 SUBMITTED BY THE PETITIONER