Kerala High Court
Purushothaman T.A vs State Bank Of India on 12 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 12TH DAY OF APRIL 2024 / 23RD CHAITHRA, 1946
WP(C) NO. 14508 OF 2024
PETITIONER
PURUSHOTHAMAN T.A.
AGED 78 YEARS
S/O. AYYAPPAN, RESIDING AT THARAYIL HOUSE,
CHANDRAPURI, CMC II, CHERTHALA P.O., ALAPPUZHA,
PIN - 688524
BY ADVS.
C.V.MANUVILSAN
NAEEM IBRAHIM
O.A.ANJU
AJITHA KUMARI M.M.
VRINDA LAKSHMANAN
RESPONDENTS:
1 STATE BANK OF INDIA
REGD. OFFICE AT CORPORATE CENTRE,
MADAME CAMA ROAD, NARIMAN POINT, MUMBAI, REPRESENTED BY
ITS MANAGING DIRECTOR & CEO., PIN - 400021
2 STATE BANK OF INDIA LOCAL HEAD OFFICE
ROTARY JUNCTION, POOJAPPURA MAIN RD,
KESARI NAGAR, POOJAPURA,
THIRUVANANTHAPURAM, KERALA,
REPRESENTED BY THE ASSISTANT GENERAL MANAGER,
PIN - 695012
3 THE BRANCH MANAGER
BAZAR ROAD CHERTHALA BRANCH, STATE BANK OF INDIA,
PRIVATE BUS STAND, GANDI BAZAR SHOPPING COMPLEX
CHERTHALA, ALAPPUZHA,
KERALA, PIN - 688524
4 ASSISTANT GENERAL MANAGER
STATE BANK OF INDIA, RASMEC,
KALLUPALATHIL BUILDING, C.C.S.B. ROAD,
IRON BRIDGE P.O., ALAPPUZHA, PIN - 688011
WP(C) No.14508 Of 2024
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5 AUTHORISED OFFICER
ASSISTANT GENERAL MANAGER MANAGER
STATE BANK OF INDIA,
STRESSED ASSETS RECOVERY BRANCH, 7TH FLOOR,
VENKARATH TOWERS, PALARIVATTOM BYE-PASS
JUNCTION, ERNAKULAM, PIN - 682024
6 RESERVE BANK OF INDIA
REPRESENTED BY ITS CGM IN CHARGE AND SECRETARY,
SECRETARY'S DEPARTMENT, 16TH FLOOR,
CENTRAL OFFICE BUILDING SHAHID BHAGAT SINGH
MARG, MUMBAI, PIN - 400001
7 ADV. DEVANARAYANAN G.
ADVOCATE COMMISSIONER, LEKSHMI NIVAS,
OPPO. S.D.V. CENTRAL SCHOOL,
ZILLA COURT WARD, ALAPPUZHA,
PIN - 688001
SRI.JITHESH MENON (STANDING COUNSEL)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 12.04.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) No.14508 Of 2024
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JUDGMENT
Dated this the 12th day of April, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the State Bank of India 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 ₹51,85,490/- to the petitioner as
Housing Loan in the year 2015. 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 Covdi-19
pandemic. The repayment of loan fell into arrears. It
happened due to reasons beyond the control of the petitioner.
WP(C) No.14508 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 Exts.P1 to P7 notices.
4. The petitioner states that he is still in a position to
clear the overdue amounts towards the loan, if sufficient time
is given to clear the dues in easy monthly installments. If the
respondents are 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 respondents, it is submitted that
the loan was given to the petitioner in the year 2015. The
WP(C) No.14508 Of 2024
petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioner and
required him to clear the dues. The petitioner deliberately
omitted to do so. 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 Exts.P1 to P7 notices were 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
petitioner to clear the dues. The Standing Counsel submitted
that the outstanding amount due to the Bank from the
petitioner as on 10.04.2024 is ₹69,36,389/-.
WP(C) No.14508 Of 2024
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 loan account initially. The default in repayment of the loan
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:
(i) The petitioner shall remit the
consecutive and equal monthly installments
along with accruing interest and other Bank
charges, if any. First of such installments
WP(C) No.14508 Of 2024
shall be paid on or before 13.05.2024.
(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.14508 Of 2024
APPENDIX OF WP(C) 14508/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE PHOTOCOPY OF THE DEMAND NOTICE
ISSUED BY THE RESPONDENT BANK UNDER
SECTION 13 (2) OF THE SARFAESI ACT,
2002, TO THE NAME OF THE SON OF THE
PETITIONER HEREIN ON 26.10.2023
Exhibit P2 A TRUE PHOTOCOPY OF THE NOTICE NO.
AGM/RASMEC/ALPY ISSUED BY THE 4TH
RESPONDENT ON 17.11.2023, TO THE NAME
OF THE SON OF THE PETITIONER
Exhibit P3 A TRUE PHOTOCOPY OF THE NOTICE ISSUED
BY THE 5TH RESPONDENT DATED
04.12.2023, TO THE PETITIONER AND TO
THE BORROWER
Exhibit P4 A TRUE COPY OF THE NOTICE UNDER RULE 8
(1) OF THE SARFAESI ACT, DATED
04.01.2024, ISSUED BY THE 5TH
RESPONDENT
Exhibit P5 A TRUE PHOTOCOPY OF THE NEWS PAPER
PUBLICATION, DATED 04.01.2024
Exhibit P6 A TRUE COPY OF THE LAWYER NOTICE
ISSUED TO THE PETITIONER FROM THE BANK
ON 11.01.2024
Exhibit P7 A TRUE COPY OF THE NOTICE ISSUED BY
THE ADVOCATE COMMISSIONER DATED
19.03.2024
