Kerala High Court
Mohammed Rafeeq T vs The Urban Co-Operative Bank Ltd on 5 April, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 5TH DAY OF APRIL 2024 / 16TH CHAITHRA, 1946
WP(C) NO. 14113 OF 2024
PETITIONER:
MOHAMMED RAFEEQ T
AGED 38 YEARS
S/O. THENU HAJI, THOOLIYATH HOUSE,
MANALAYA P.O., MALAPPURAM DISTRICT.,
PIN - 679357
BY ADV K.RAKESH
RESPONDENT:
THE URBAN CO-OPERATIVE BANK LTD
PERINTHALMANNA, MALAPPURAM DISTRICT,
REPRESENTED BY ITS AUTHORISED OFFICER.,
PIN - 679322
BY ADVS.
JAYASREE K.P.
JOHN JOSEPH(K/000875/2019)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
05.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.14113 Of 2024
2
JUDGMENT
Dated this the 5th day of April, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Urban Co-operative Bank Limited to the
petitioner, invoking the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002.
2. The Bank paid ₹30 lakhs to the petitioner as Cash
Credit facility in the year 2020. The petitioner states that
though the petitioner made remittances promptly during the
initial repayment period of the financial advance, he could not
pay the repayment installments promptly later due to extreme
financial impediments. The repayment of advance fell into
arrears. It happened due to reasons beyond the control of the
petitioner.
WP(C) No.14113 Of 2024
3. Though the petitioner requested the Bank to permit
the petitioner to repay the overdue amounts in easy monthly
installments, the Bank authorities were not yielding. The
authorities, instead started coercive proceedings invoking the
provisions of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002 and the Security Interest (Enforcement) Rules, 2002 and
issued Ext.P1 notice.
4. The petitioner states that he is still in a position to
clear the overdue amounts towards the advance, if sufficient
time is given to clear the dues in easy monthly installments. If
the respondent is permitted to continue with the coercive
proceedings and auction the secured assets provided by the
petitioner, he will be put to untold hardship and loss.
5. Standing Counsel entered appearance on behalf of
the Bank and denied all the statements made by the
petitioner. On behalf of the respondent, it is submitted that the
WP(C) No.14113 Of 2024
advance was given to the petitioner in the year 2020. The
petitioner committed default in maintaining the advance.
6. The Bank repeatedly reminded the petitioner and
required him to clear the dues. The petitioner deliberately
omitted to do so. The petitioner's account was declared as
NPA in the year 2021. In the circumstances, the Bank had no
other go than to proceed against the petitioner invoking the
provisions of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002. The impugned Ext.P1 notice was issued in these
circumstances. The petitioner has not advanced any legal
reasons to thwart the coercive proceedings initiated by the
Bank.
7. The Standing Counsel, however, submitted that if
the petitioner is ready and willing to make a substantial
payment soon and remit the outstanding amount immediately
thereafter, a short breathing time can be granted to the
WP(C) No.14113 Of 2024
petitioner to clear the dues. The Standing Counsel submitted
that the outstanding amount due to the Bank from the
petitioner as on 05.04.2024 is ₹50,26,951/-.
8. I have heard the counsel for the petitioner and the
Standing Counsel representing the Bank.
9. The specific case of the petitioner is that the
petitioner has been making the repayment and maintaining
the advance initially. The default in repayment of the advance
occurred lately due to reasons beyond the control of the
petitioner. The petitioner has provided substantial security
which will safeguard the interest of the Bank.
10. In the facts and circumstances of the case, I am
inclined to dispose of the writ petition giving a short and
reasonable time to the petitioner to clear off the liability.
11. The writ petition is therefore disposed of with the
following directions:
WP(C) No.14113 Of 2024
(i) The petitioner shall remit the
outstanding amount of ₹50,26,951/- in ten
consecutive and equal monthly installments
along with accruing interest and other Bank
charges, if any. First of such installments
shall be paid on or before 06.05.2024.
(ii) If the petitioner commits default in
making payments as directed above, the
respondent will be at liberty to continue with
the coercive proceedings against the
petitioner in accordance with law.
(iii) If the petitioner makes payments as
directed above, coercive proceedings, if any,
against the petitioner shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
hmh
WP(C) No.14113 Of 2024
APPENDIX OF WP(C) 14113/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE ORDER DATED 21-12-
2023 PASSED BY THE HON'BLE C.J.M,
Exhibit P2 TRUE COPY OF THE INSPECTION NOTICE
DATED, 11-3-2024 ISSUED BY THE
ADVOCATE COMMISSIONER
