Kerala High Court
Pathummakutty vs Authorised Officer, Csb Bank Ltd on 22 November, 2023
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 22ND DAY OF NOVEMBER 2023 / 1ST AGRAHAYANA, 1945
WP(C) NO. 38562 OF 2023
PETITIONER:
PATHUMMAKUTTY
AGED 64 YEARS
W/O.ISMAIL, 3 H MANZIL,
KERALASSERY POST,
PALAKKAD, PIN - 678641
BY ADVS.
P.R.HARIKUMAR
ANANTHU S. HARI
AMEENA M.S
RESPONDENT:
AUTHORISED OFFICER, CSB BANK LTD.,
FORMERLY CATHOLIC SYRIAN BANK LTD,
PALAKKAD BRANCH, SANJOE TOWERS,
OPP. K.S.T.C, PALAKKAD, PIN - 678001
SRI.MADHU RADHAKRISHNAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
22.11.2023, ALONG WITH WP(C).38600/2023, THE COURT ON THE SAME
DAY DELIVERED THE FOLLOWING:
WP(C) Nos.38562 and 38600 of 2023
2
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 22ND DAY OF NOVEMBER 2023/1ST AGRAHAYANA, 1945
WP(C) NO. 38600 OF 2023
PETITIONER:
RAMACHANDRAN P.
AGED 59 YEARS
S/O. MADAVAN NAIR, EX. ARMY,
P.M. NILAYAM, THADUKKASSERY,
KERALASSERY POST, PALAKKAD, PIN - 678641
BY ADVS.
P.R.HARIKUMAR
ANANTHU S. HARI
AMEENA M.S
RESPONDENT:
AUTHORISED OFFICER, CSB BANK LTD.
FORMERLY CATHOLIC SYRIAN BANK LTD,
PALAKKAD BRANCH, SANJOE TOWERS,
OPP. K.S.T.C, PALAKKAD, PIN - 678001
BY ADVS.
MADHU RADHAKRISHNAN
NELSON JOSEPH(K/380/2007)
M.D.JOSEPH(K/839/2008)
DEEPAK ASHOK KUMAR(K/1624/2018)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 22.11.2023, ALONG WITH WP(C).38562/2023, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) Nos.38562 and 38600 of 2023
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JUDGMENT
Dated this the 22nd day of November, 2023
[W.P.(C) Nos.38562 and 38600 of 2023]
The petitioners in both these writ petitions are guarantors
to a financial advance made by the Catholic Syrian Bank to one
Mr.Sunil. As the said borrower failed in maintaining the Cash
Credit account, coercive proceedings were initiated by the
respondent-Bank against the borrower as well as the
petitioners.
2. The petitioners would submit that there are 10
guarantors and the petitioners are willing to pay off the
proportionate liability, if the Bank is giving reasonable time for
paying in installments. The petitioners in these writ petitions
together have already remitted ₹5 lakhs, which would show the
bona fides of the petitioners. If the respondent-Bank is
permitted to take over the physical possession of the mortgaged
WP(C) Nos.38562 and 38600 of 2023
property given by the petitioners, the petitioners and their family
will be put to irreversible loss and injury.
3. Standing Counsel entered appearance on behalf of
the respondent-Bank and resisted the writ petition. The
Standing Counsel pointed out that the total outstanding amount
due from the borrower would exceed ₹9 Crores. The petitioners
being the guarantors, they are jointly and severally liable to pay
the said amount. If the petitioners make a substantial bulk
payment now and make a proposal for One Time Settlement,
the Bank can consider the same as per the Rules and Scheme
of One Time Settlement.
4. The petitioners being guarantors to the loan
transaction, they cannot legally claim that they are bound only
to make proportional payment. Taking into consideration the
fact that the petitioners are only guarantors to the Cash Credit
facility availed by a third party, it would be only appropriate for
the Bank to consider proposal, if any, given by the petitioners
for One Time Settlement.
WP(C) Nos.38562 and 38600 of 2023
In the circumstances, these writ petitions are disposed of
directing that if the petitioners together remit an amount of ₹50
lakhs within a period of one month from today and make a
proposal for One Time Settlement, the respondent shall
consider the same in accordance with the Scheme of One Time
Settlement and as per rules. If the petitioners fail to remit ₹50
lakhs as directed above, the respondent will be free to proceed
against the petitioners in accordance with law. It is made clear
that if the petitioners make the payment as directed above,
coercive proceedings against the property of the petitioners
shall stand deferred till the Bank takes a decision on the
proposal.
Sd/-
N.NAGARESH
JUDGE
spk
WP(C) Nos.38562 and 38600 of 2023
APPENDIX OF WP(C) 38562/2023
PETITIONER EXHIBITS
Exhibit- P1 TRUE COPY OF THE RECEIPT FOR RS.5
LAKHS, REMITTED BEFORE THE RESPONDENT
BANK, FOR OTS APPROVAL, DATED 26-07-
2023.
Exhibit- P2 TRUE COPY OF THE REQUEST LETTER BY THE
PETITIONER TO THE RESPONDENT BANK DATED
01-11-2023.
Exhibit- P3 TRUE COPY OF THE ADVOCATE COMMISSIONER
NOTICE IN M.C.28/2021, TO TAKE
POSSESSION ON 15/11/2023, ON THE FILE
OF THE CHIEF JUDICIAL MAGISTRATE COURT,
PALAKKAD.
WP(C) Nos.38562 and 38600 of 2023
APPENDIX OF WP(C) 38600/2023
PETITIONER EXHIBITS
Exhibit- P1 TRUE COPY OF THE RECEIPT FOR RS.5
LAKHS, REMITTED BEFORE THE RESPONDENT
BANK, FOR OTS APPROVAL, DATED 26-07-
2023.
Exhibit- P2 TRUE COPY OF THE REQUEST LETTER BY THE
PETITIONER TO THE RESPONDENT BANK DATED
25-10-2023.
Exhibit- P3 TRUE COPY OF THE ADVOCATE COMMISSIONER
NOTICE IN M.C.28/2021, TO TAKE
POSSESSION ON 15/11/2023, ON THE FILE
OF THE CHIEF JUDICIAL MAGISTRATE COURT,
PALAKKAD.
