M/S. Korembath Enterprises vs Union Bank Of India
2023 Latest Caselaw 112 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. 40463 OF 2022
PETITIONER/S:

    1       M/S. KOREMBATH ENTERPRISES
            2/426, KAPPAKKADAVU P.O, AZHIKODE, AZHIKKAL P.O,
            KANNUR, REPRESENTED BY ITS PROPRIETOR, MR. RAJESH
            KOREMBATH, PIN - 670009
    2       MR. RAJESH KOREMBATH
            AGED 50 YEARS
            S/O DAMODARAN, KOREMBATH HOUSE, KAPPAKKADAVU, AZHIKKAL
            P.O., KANNUR , PIN - 670009
            BY ADVS.
            M.S.AMAL DHARSAN
            NOEL JACOB


RESPONDENT/S:

    1       UNION BANK OF INDIA,
            KANNUR MAIN BRANCH, HAJI BUILDING, FORT ROAD, KANNUR,
            REPRESENTED BY ITS BRANCH MANAGER, PIN - 670001
    2       THE AUTHORISED OFFICER
            REGIONAL OFFICE KOZHIKODE, KSHB COMPLEX, VIKAS NAGAR,
            CHAKKORATHUKULAM, KOZHIKODE , PIN - 673006



            ADV. A S P KURUP (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. 40463 OF 2022                2



                                JUDGMENT

Petitioners have approached this Court, challenging

proceedings initiated by the respondent Bank under the

provisions of the Securitisation and Reconstruction of

Financial Assets and Enforcement of Security Interest Act,

for recovery of the amounts due from the petitioners.

2. Learned counsel appearing for the petitioners

submit that the the 2nd petitioner availed several credit

facilities from the respondent bank, but he could not repay

that loan because of financial crisis. It is submitted that

the property of the petitioner is scheduled to be sold on

11.01.2023. It is also submitted that the petitioner may be

permitted to clear the liability in instalments.

3. Learned counsel appearing for the respondent

bank submits that the 2nd petitioner, who is the proprietor of

the 1st petitioner, availed several credit facilities from the

respondent bank and committed default in repayment. It is

also submitted that regularisation is not possible. It is also

submitted that the petitioner has to prove his bona fides by

depositing substantial amounts, if the sale proposed to be

held on 11.03.2023 is to be adjourned. It is submitted that if

substantial deposit is made, the balance amount can be

permitted to be remitted in instalments. According to the

learned counsel appearing for the respondent, as of now,

balance amount which is liable to be repaid is Rs.63,09,436/-

(Rupees Sixty three lakhs nine thousand four hundred and

thirty six only) and the petitioner can be permitted to clear

the same in limited instalments.

4. I have heard the learned counsel for the

petitioner as well as the learned Standing counsel

appearing for the respondent bank.

5. 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 outstanding

amount in twelve instalments.

6. Accordingly, there will be a direction to the

respondent bank to accept repayment of the entire

outstanding amount of Rs.63,09,436/- (Rupees Sixty three

lakhs nine thousand four hundred and thirty six only) along

with accrued interest and bank charges from the petitioner

in the following manner:-

(i) Petitioner shall pay an amount of Rs.5,00,000/- (Rupees Five lakhs only) on or before 12.00 pm on 10.01.2023 and a further sum of Rs.5,00,000/- (Rupees Five lakhs only) on or before 12.00 pm on 31.01.2023;

(ii) The balance outstanding amount of Rs.53,09,436/- (Rupees Fifty three lakhs nine thousand four hundred and thirty six only)shall be repaid in twelve equated monthly instalments along with any accrued interest/costs;

(iii) The first instalment shall be paid on or before 28.02.2023 and the subsequent instalments shall be paid on or before the last working day of the succeeding months;

(iv) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law;

(v) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance;

(vi) It is made clear that if the petitioner applies for and obtains any One Time Settlement, the petitioner will be governed by the terms such sanction and not by the terms of this judgment. If One Time Settlement is granted, any amount paid by the petitioner as directed in this judgment will be treated as payment towards the One Time settlement amount.

The writ petition is disposed of as above.

sd/-

GOPINATH P.

JUDGE ajt

APPENDIX OF WP(C) 40463/2022

PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE SALE NOTICE DATED 05/12/2022 ISSUED BY THE 2ND RESPONDENT Exhibit P2 TRUE COPY OF THE E-PAPER OF DESHABHIMANI DATED 07/12/2022