Kerala High Court
Muhammed Kutty T vs State Bank Of India on 6 February, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 6TH DAY OF FEBRUARY 2024 / 17TH MAGHA, 1945
WP(C) NO. 33481 OF 2023
PETITIONER:
MUHAMMED KUTTY T
AGED 52 YEARS
S/O LATE MUMMI HAJI,
THADATHIL HOUSE, THENNALA P.O
MALAPPURAM DISTRICT, PIN - 676511
BY ADVS.
P.YADHU KUMAR
P.BABU KUMAR
SWETHA K.S.
RESPONDENTS:
1 STATE BANK OF INDIA
REPRESENTED BY ITS BRANCH MANGER
CALICUT UNIVERSITY BRANCH,
MALAPPURAM, PIN - 673635
2 AUTHORISED OFFICER AND CHIEF MANGER
STATE BANK OF INDIA
SMEC KOZHIKODE BRANCH, BANK ROAD,
MANANCHIRA, PIN - 673001
3 RESERVE BANK OF INDIA
REPRESENTED BY CHIEF GENERAL MANGER CENTRAL
OFFICE,
SBS MARG, MUMBAI, PIN - 400001
4 UNION OF INDIA
REPRESENTED BY SECRETARY TO
BANKING CENTRAL SECRETARIATE,
NEW DELHI , PIN - 110001
W.P.(C) No.33481/2023
:2:
BY ADV
SMT.LAKSHMY FOR R1 & R2
SRI.S.MANU, DSGI
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 06.02.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C) No.33481/2023
:3:
N. NAGARESH, J.
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W.P.(C) No.33481 of 2023
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Dated this the 6th day of February, 2024
JUDGMENT
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The petitioner, who is running a Small Scale
Industry, has approached this Court seeking to quash Ext.P2
notice issued under Section 13(2) of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 and Ext.P6 reply issued by the 2 nd
respondent to the objections of Section 13(2) notice.
2. The petitioner states that ₹13 lakhs loan was
availed by him from the SBI for running a home designing.
The petitioner also availed ₹10 lakhs for coconut trading.
The petitioner availed an agricultural term loan of ₹10 lakhs.
A Kisan Credit loan of ₹2 lakhs was also availed.
Consequent to business failure, loans could not be repaid.
3. Due to non-payment of loan instalments, the
accounts were declared NPA in the year 2019. The Bank
offered settlement under the Scheme 'Rinn Samadhan
2021-2022'. A settlement was arrived at. The petitioner was
directed to pay ₹18 lakhs for closing entire loan transaction.
The petitioner remitted ₹14,28,000/-. The petitioner could
not remit the balance amount of ₹3,62,000/-. The petitioner
however informed the Bank about his readiness to pay the
balance amount.
4. The Bank, however, issued Ext.P2 notice under
Section 13(2) of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002. In Ext.P2, it was stated that the petitioner is liable to
pay ₹39,28,461/-. The petitioner submitted his objections.
Thereupon, the petitioner was served with Ext.P6 reply dated
29.09.2023. The petitioner states that the respondents are
taking hasty steps to issue Section 13(4) notice and to take
possession of the entire property.
5. The petitioner would urge that the proceedings of
the Bank is in violation of the Act, 2002 and the directions of
the Apex Court contained in Mardia Chemicasl Limited v.
Union of India [(2004) 4 SCC 311] and Sundara Kumari
W/o LR v. Standard Chartered Bank [ILR 2006 Kar 16].
6. Respondents 1 and 2 filed counter affidavit and
resisted the writ petition. Respondents 1 and 2 submitted
that as repayment of loan was defaulted in spite of repeated
reminders, since accounts were running irregular, the loan
accounts were classified as NPA on 18.08.2019 and the
proceedings under the Act, 2002 were initiated.
7. The issue was placed before the Lok Adalat,
Kozhikode on 06.12.2021. As per the Award of the Lok
Adalat, the petitioner was to remit ₹1,02,500/- on or before
31.12.2021 and the remaining amount of ₹9,22,500/- on or
before 31.03.2022. This Award was in respect of account
No.67039162799. In respect of another loan account
67288155903, the petitioner was to remit ₹1,35,000/- on or
before 31.12.2021 and the remaining amount of ₹12,15,000/-
on or before 31.03.2022.
8. The petitioner failed to adhere to the time
schedule fixed by the Adalat. Therefore, the respondents are
entitled to proceed with recovery.
9. I have heard the learned counsel for the petitioner
and the learned Standing Counsel representing the
respondents.
10. The petitioner is challenging Ext.P2 notice issued
by the Bank under Section 13(2) of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 and Ext.P6 reply given by the
Bank rejecting the objections raised by the petitioner. The
petitioner has alternative remedy against Exts.P2 and P6.
The petitioner can approach the Debts Recovery Tribunal
under the Act, 2002.
11. The petitioner seeks to pay the balance amount
pursuant to the Award passed by the Lok Adalat, Kozhikode
in the year 2022. According to the Bank, the petitioner had
time up to 31.03.2022 to pay the agreed amount. The
petitioner failed to pay the amount. Thereafter, possession
of the secured assets was taken over on 25.09.2023.
12. Exts.R1 and R1(a) copies of the Award provide
that in default of payment as stipulated in the Award, the
settlement shall stand cancelled. The Hon'ble Apex Court
has held in the judgment in State Bank of India v. Arvindra
Electronics Private Limited [(2023) 1 SCC 540] that the
High Court in exercise of the powers under Article 226 of the
Constitution of India cannot vary the terms of a One Time
Settlement agreement. Though the Awards passed in this
case are not under any One Time Settlement Scheme, but
since they are under a settlement Award by the Lok Adalat,
this Court will not be justified in varying the terms of the
Award.
The writ petition is therefore without any merit and
is dismissed.
Sd/-
N. NAGARESH, JUDGE
aks/03.02.2024
APPENDIX OF WP(C) 33481/2023
PETITIONER'S EXHIBITS
EXHIBIT P1 A TRUE PHOTO COPY OF THE RECEIPTS
DATED 14.03.22 ISSUED BY THE
RESPONDENT BANK
EXHIBIT P2 A TRUE COPY OF THE SECTION 13(2)
NOTICE ISSUED BY THE RESPONDENT DATED
24.07.23
EXHIBIT P3 TRUE PHOTOCOPY OF THE THE INTIMATION
ISSUED FROM THE POST OFFICE SHOWING
DATE OF NOTICE DATED 26.09.23
EXHIBIT P4 TRUE PHOTO COPY OF THE POSTAL COVER
SHOWING THE REGISTER NUMBER OF THE
REGISTERED NOTICE ISSUED UNDER SECTION
13(2)
EXHIBIT P5 TRUE COPY OF THE REPLY NOTICE SEND BY
THE PETITIONER TO THE 13 (2) NOTICE
DATED 26.09.23
EXHIBIT P6 TRUE COPY OF THE REPLY NOTICE ISSUED
BY THE SECOND RESPONDENT DATED
29.09.23
EXHIBIT P7 A TRUE PHOTOCOPY OF THE REPRESENTATION
DATED 23-03-2022
EXHIBIT P8 A TRUE PHOTO COPY OF THE INTIMATION
DATED 23.03.2022
EXHIBIT P9 A TRUE COPY OF THE ACCOUNT STATEMENT
288155903 ) FROM 04-08-2014 TO 26-09-
EXHIBIT P10 THE TRUE COPY OF STATEMENT OF ACCOUNT
FROM 01-01-2022 TO 16-03-2022 FOR THE
ACCOUNT NO. 67039162799
EXHIBIT P11 TRUE COPY OF THE RELEVANT PAGES RINN
SAMADHAN SCHEME OF 2021-22
EXHIBIT P12 TRUE COPY OF THE INTIMATION DATED
9.09.2022 ISSUED BY ASSISTANT GENERAL
MANGER ON BEHALF ON 2ND RESPONDENT
EXHIBIT P13 TRUE COPY OF THE OP TICKET SERIES
DATED 14.11.2022
EXHIBIT P14 TRUE COPY OF THE OP TICKET SERIES
DATED 09.09.2021
EXHIBIT P15 TRUE COPY OF THE OP TICKET SERIES
DATED 10.01.2022
EXHIBIT P16 TRUE COPY OF THE OP TICKET SERIES
DATED 21.07.2022
EXHIBIT P17 TRUE COPY OF THE USG/DOPPLER REPORT
DATED 02.07.2022
RESPONDENT'S EXHIBITS
EXHIBIT R1 TRUE COPY OF THE AWARD IN PLP.N0
EXHIBIT R1(A) TRUE COPY OF THE PLP NO. 1340/2021
DATED 6/12/2021
EXHIBIT R2(A) THE CERTIFIED STATEMENT OF ACCOUNT
BEARING NO. 67288155903 FOR THE PERIOD
FROM 1/1/ 2022 TO 16/11/2023
EXHIBIT R2(B) THE CERTIFIED STATEMENT OF ACCOUNT
BEARING NO. 67039162799 FOR THE PERIOD
FROM 1/1/ 2022 TO 16/11/2023
