Soni Varghese vs The South Indian Bank Ltd
2023 Latest Caselaw 9582 Ker

Citation : 2023 Latest Caselaw 9582 Ker
Judgement Date : 8 September, 2023

Kerala High Court

Soni Varghese vs The South Indian Bank Ltd on 8 September, 2023

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
          THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH
     FRIDAY, THE 8TH DAY OF SEPTEMBER 2023 / 17TH BHADRA, 1945
                       WP(C) NO. 29398 OF 2023
PETITIONER:

          SONI VARGHESE
          AGED 41 YEARS, S/O VARGHESE, ELANJIPILLY HOUSE,
          KEEZHADOOR DESOM, MELADOOR POST, MUKUNDAPURAM TALUK,
          THRISSUR DISTRICT, KERALA STATE., PIN - 680741
          BY ADVS.
          SHIBIN K.F.
          SEBY JOSEPH


RESPONDENTS:

    1     THE SOUTH INDIAN BANK LTD.
          SIB HOUSE, T.B. ROAD, MISSION QUARTERS,
          THRISSUR DISTRICT, KERALA STATE. REPRESENTED BY ITS
          AUTHORISED OFFICER., PIN - 680001
    2     THE CHIEF MANAGER
          THE REGIONAL OFFICE OF THE SOUTH INDIAN BANK LTD.,
          VI/950- C&D, APK CENTRE, CHRIST COLLEGE ROAD, CHRIST
          NAGAR, IRINJALAKUDA, THRISSUR DISTRICT,
          KERALA STATE., PIN - 680125


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
08.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) No.29398 of 2023

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                    DINESH KUMAR SINGH, J.
                ===================
                     W.P.(C) No.29398 of 2023
              ======================
              Dated this the 8th day of September, 2023

                               JUDGMENT

1. The present Writ Petition (Civil) under Article 226 of the

Constitution of India is filed seeking the following reliefs;

(i) To issue a writ of mandamus or any appropriate writ, order and/or direction declaring that the action of the respondent bank in classifying the loan accounts of the petitioner as Non-Performing Asset without issuing any notice to the petitioner is arbitrary and illegal and

(ii) To issue a writ of mandamus or any appropriate writ, order and/or direction declaring that the action of the respondent bank in maintaining the petitioner's loan accounts in Non-Performing Asset status in spite of payment of entire overdue amount is arbitrary and illegal and

(iii) To issue a writ of mandamus or any other appropriate writ direction and/or order regularising the outstanding sum due in respect of cash credit open loan/over draft account No.0178083000000250 and term loan account No.0178652000000875 and

(iv) To issue a writ of mandamus or any other appropriate writ, direction and/or order to the respondent bank to allow time to the petitioner to pay off the sum outstanding in respect of cash WP(C) No.29398 of 2023

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credit open loan/over draft account No.0178083000000250 and term loan account No.0178652000000875 and

(v) To issue a writ of mandamus or any other appropriate writ, direction and/or order directing the respondent bank not to part with the property mortgaged in respect of cash credit open loan/over draft account No.0178083000000250 and term loan account No.0178652000000875 till the completion of the time to be allowed by this Hon'ble Court in this writ petition to repay the outstanding sum and

(vi) To issue an order allowing the petitioner to pay off the regular installment along with the payment of the outstanding sum and

(vii) To order such other reliefs which this Hon'ble Court may deem fit to pass in the interest of justice, equity and good conscious to the humble petitioner.

2. The learned counsel for the 1st respondent submits that

the total outstanding amount is Rs.2,05,40,934/- and the loan

account was classified as Non-Performing Asset way back on

29.06.2021. The learned counsel for the petitioner submits that

the petitioner is augmenting his resources to make payment of

the outstanding loan amount. It is further submitted that the

petitioner could be granted some time to make payment of

Rs.50 lakhs and may be permitted to approach the Bank for WP(C) No.29398 of 2023

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One Time Settlement or make re-scheduling the payment of the

remaining amount.

3. The learned counsel for the respondent-Bank submits that

the petitioner may be granted some more time to make

payment of Rs.50 lakhs and after making such payment, the

petitioner may approach the Bank for appropriate reliefs. The

Bank will consider the request of the petitioner and will take a

decision on the said request.

4. Considering the aforesaid submission and the facts and

circumstances of the case, the petitioner is directed to make

payment of Rs.50 lakhs on or before 30.09.2023. After making

such payment, the petitioner shall approach the Bank for

appropriate relief of One Time Settlement/re-scheduling the

payment of the remaining loan amount and the bank shall take

appropriate decision on the request of the petitioner within a

period of two weeks thereafter. If the petitioner makes payment

of Rs.50 lakhs on or before 30.09.2023 and makes a request to WP(C) No.29398 of 2023

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the Bank, further proceedings pursuant to Ext.P1 shall be kept

in abeyance till the Bank takes a decision on the request of the

petitioner.

With the aforesaid directions the present writ petition is

finally disposed of.

Sd/-

DINESH KUMAR SINGH JUDGE

ded WP(C) No.29398 of 2023

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APPENDIX OF WP(C) 29398/2023

PETITIONER EXHIBITS

Exhibit P1 A TRUE COPY OF THE NOTICE, DATED 04-04-

2022, ISSUED BY THE RESPONDENT BANK TO THE PETITIONER UNDER SECTION 13(8) OF THE SARFAESI ACT Exhibit P2 A TRUE COPY OF SANCTION LETTER DATED 04-11-

2016 ISSUED BY THE RESPONDENT BANK TO THE PETITIONER IN RESPECT OF CCOL FACILITY.

Exhibit P3 A TRUE COPY OF THE SANCTION LETTER DATED 04-01-2017 IN RESPECT OF THE TL FACILITY ISSUED BY THE RESPONDENT BANK TO THE PETITIONER Exhibit P4 A TRUE COPY OF THE REVISED SANCTION LETTER DATED 20-02-2018 ISSUED BY THE RESPONDENT BANK TO THE PETITIONER Exhibit P5 A TRUE COPY OF A BANK STATEMENT IN RESPECT OF THE ACCOUNT NO. 0178083000000250 DURING THE PERIOD 01-01-2022 TO 31-12-2022 Exhibit P6 A TRUE COPY OF THE MASTER CIRCULAR OF THE RBI DATED 12-11-2021 Exhibit P7 A TRUE COPY OF A BANK STATEMENT IN RESPECT OF THE ACCOUNT NO. 0178652000000875 DATED NIL Exhibit P8 THE PHOTOGRAPHS DATED NIL SHOWING THE CATTLE SHED AND CATTLE THEREIN AT THE MORTGAGED PROPERTY.

Exhibit P9 A TRUE COPY OF THE CERTIFICATE OF INCORPORATION OF THE "RALPH ROSE CATTLE FEEDS PRIVATE LIMITED" DATED 09-11-2016 Exhibit P10 A TRUE COPY OF THE SHAREHOLDING PATTERN, DATED 16-06-2023, OF THE "RALPH ROSE CATTLE FEEDS PRIVATE LIMITED"

Exhibit P11 A TRUE COPY OF THE SUPPLY ORDER DATED 31-