Manarkattu Theatres (P) Ltd Rep. ... vs Kerala Bank (Kerala State ...
2023 Latest Caselaw 6698 Ker

           IN THE HIGH COURT OF KERALA AT ERNAKULAM
                           PRESENT
            THE HONOURABLE MR. JUSTICE GOPINATH P.
   TUESDAY, THE 20TH DAY OF JUNE 2023 / 30TH JYAISHTA, 1945
                   WP(C) NO. 10371 OF 2023
PETITIONER/S:

          MANARKATTU THEATRES (P) LTD REP. BY ITS MANAGING
          DIRECTOR SHRI.JOSEPH JOSEPH
          REGISTERED OFFICE AT MANARKATTU BUILDINGS LALAM
          VILLAGE MEENACHAL THALUK PALA KOTTAYAM, PIN - 686575

          BY ADVS.
          MOHAN JACOB GEORGE
          P.V.PARVATHY (P-41)
          REENA THOMAS
          NIGI GEORGE



RESPONDENT/S:

    1     KERALA BANK (KERALA STATE CO.OP.BANK LTD) REP. BY
          ITS REGIONAL MANAGER
          KOTTAYAM REGIONAL OFFICE P.B.NO.140 CENTRAL JUNCTION
          KOTTAYAM DISTRICT, PIN - 686001

    2     THE MANAGER, KERALA BANK (KERALA STATE CO.OP. BANK
          LTD
          MUNNAR MAIN BRANCH MUNNAR P O IDUKKI DISTRICT, PIN -
          685612

          BY ADV GILBERT GEORGE CORREYA-SC


THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
20.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 W.P.(C)No.10371/2023                    2

                              JUDGMENT

The petitioner is a Private Limited Company incorporated under

the provisions of the Companies Act, 1956. The petitioner had

mortgaged its properties as security towards a loan availed by another

Company known as "J.J. Holiday Resort (P) Limited." from the

erstwhile Idukki District Co-operative Bank (which is now merged with

the Kerala Bank). The loan availed by J.J. Holiday Resort (P) Limited

has been closed as is evident from Ext.P3. However, the title deeds of

the properties belonging to the petitioner have not been released

prompting the petitioner to approach this Court by filing the above writ

petition.

2. The learned counsel appearing for the respondent bank

would submit that the Directors of the petitioner Company have

executed personal guarantees in respect of loan availed by yet another

Company known as 'J.J Manarkattu Resorts and Holidays Private

Limited'. It is submitted that J.J. Manarkattu Resorts and Holidays

Private Limited has substantial liabilities with the Kerala Bank

amounting to nearly Rs.28 crores. It is submitted that the bank is

therefore, exercising its right of general lien over the title deeds of the

property belonging to the petitioner Company as the Directors of the

petitioner Company are personal guarantors in respect of the loan

availed by M/s. J.J. Manarkattu Resorts and Holidays Private Limited.

3. Having heard the learned counsel appearing for the

petitioner and the learned counsel appearing for the respondent Bank,

I am clearly of the view that the stand taken by the respondent bank

cannot be countenanced in law. The petitioner Company is an entity

distinct from its shareholders. It is not disputed before me that the

property of the petitioner was mortgaged as security towards

repayment of the loan availed by the other Company namely, J.J.

Holiday Resort (P) Limited and that the said loan had been closed in

full. The fact that the Directors of the petitioner Company are personal

guarantors in respect of the loan availed by yet another Company

namely, M/s. J.J. Manarkattu Resorts and Holidays Private Limited

cannot be a ground for the bank to retain the title documents of the

petitioner Company.

4. The question of exercising any lien does not arise in the

facts and circumstances of the case as the petitioner is not even a

corporate guarantor in respect of a loan availed by M/s. J.J.

Manarkattu Resorts and Holidays Private Limited.

Therefore, this writ petition is allowed and the 1st respondent

bank is directed to release the documents of title deposited by the

petitioner forthwith, for the purpose of creating a mortgage for

securing the repayment of amounts due from J.J. Holiday Resort (P)

Limited, if the liability of M/s. J.J. Holiday Resort (P) Limited has

been settled in full.

Sd/-

GOPINATH P.

JUDGE acd

APPENDIX OF WP(C) 10371/2023

PETITIONER EXHIBITS

Exhibit P-1 COPY OF THE SANCTION ORDER DATED 25.03.2014 ISSUED BY THE IDUKKI DISTRICT CO-OPERATIVE BANK

Exhibit P-2 COPY OF POSSESSION NOTICE DATED 19.08.2019 ISSUED BY THE IDUKKI DISTRICT CO-OPERATIVE BANK

Exhibit P-3 COPY OF THE LETTER DATED 17.05.2022 ISSUED BY THE RESPONDENTS

Exhibit P-4 COPY OF THE REPRESENTATION DATED 19.05.2022 SUBMITTED FOR RELEASE OF THE TITLE DEEDS BY THE PETITIONER COMPANY

Exhibit P-5 COPY OF THE COMPLAINT DATED 05.07.2022 SUBMITTED BY THE PETITIONER BEFORE THE HON'BLE MINISTER FOR CO-OPERATIVE SOCIETIES