Kerala High Court
Reji Cv vs Urban Co-Operative Bank Ltd, No. 1758 on 23 February, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 23RD DAY OF FEBRUARY 2024/4TH PHALGUNA, 1945
OP (DRT) NO. 84 OF 2024
SA No.65/2020 OF THE DEBT RECOVERY TRIBUNAL-I,
ERNAKULAM
PETITIONERS/APPLICANT IN S.A:
1 REJI CV
AGED 54 YEARS, S/O VARKKI JOSEPH,
PROPRIETOR, SILENT VALLEY RUBBERS
MANNARKKAD CHAKKUPURAKKAL HOUSE,
PANTHALLOOR HILLS P.O., ANAKKAYAM,
MALAPPURAM, PIN - 676 521.
2 V. D SIBI
AGED 58 YEARS, S/O VATHACHIRA DEVASYA,
PALACHODU P.O., MALAPPURAM,
PIN - 679 338.
BY ADVS.
S.RENJITH
P.K.SREEVALSAKRISHNAN
K.R.PRATHISH
S.UNNIKRISHNAN (NELLAD)
JACOB ZACHARIAH
PREETHY P. JOSEPH
RESPONDENT/DEFENDANT IN S.A:
URBAN CO-OPERATIVE BANK LTD, NO. 1758
B NO. 10, URBAN BANK BUILDING PATTABI ROAD,
PERINTHALMANNA, MALAPPURAM DISTRICT,
REP BY ITS THE AUTHORISED OFFICER,
PIN - 679 322.
BY ADV
U.K DEVIDAS
THIS OP (DEBT RECOVERY TRIBUNAL) HAVING COME UP FOR
ADMISSION ON 23.02.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
O.P.(DRT) No.84 of 2024
:2:
JUDGMENT
Dated this the 23rd day of February, 2024
The petitioners are the applicants and the
respondent is the defendant in SA No. 65/2020, which is
pending before the Debts Recovery Tribunal-I, Ernakulam.
2. The 1st petitioner availed a Cash Credit loan from
the respondent-Bank mortgaging his agricultural property.
After inspection, the respondent has sanctioned an amount
of Rs. 2,80,00,000/- to the 1 st petitioner. The loan was taken
for his rubber unit. The 1st petitioner defaulted the repayment
due to loss happened in the business and due to the flood
occurred. The cultivation in the scheduled property has also
perished and the 1st petitioner suffered huge loss. The
repayment of loan fell into arrears. The Defendant issued
notice under Section 13(2) of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Securities Interest Act, 2002, alleging that there is dues of
Rs.2,85,28,249/-.
3. The petitioners have sent a detailed reply to the
above notice. Without considering the same, the
respondent-Bank issued sale notice to sell the property
alleging that there is dues of Rs.3,27,92,563/- till 31.05.2019.
The petitioners have preferred S.A No. 65 of 2020 before the
Debts Recovery Tribunal-I, Ernakulam under Section 17 of
the SARFAESI Act.
4. The petitioners state that at the time of admission,
the Debts Recovery Tribunal-I, Ernakulam granted interim
order and confirmation of the sale was deferred till next date
of hearing and listed the matter on 06.03.2020. Thereafter,
on subsequent posting dates, the respondent appeared and
sought time for filing written statement. Thereafter, there was
11 postings for the case, but case was adjourned by notice
and the case is posted to 04.04.2024. In the meanwhile, the
petitioners were served with a notice by the Advocate
Commissioner in respect of M.C No. 848/2023 filed before
the Chief Judicial Magistrate's Court, Manjeri stating that he
will take the possession of the property on 08.02.2024.
4. Since the case was posted to 04.04.2024, the
petitioners filed IA No.680 of 2024 before the Debts
Recovery Tribunal-I, Ernakulam to advance the case to near
date for hearing the matter. But even after the petition has
been filed, the said application was not so far considered and
case is not advanced, contends the petitioners.
5. The grievance of the petitioners appears to be that
the SA is pending for a considerable long period and all of a
sudden, the respondents have invoked Section 14 of the
Securitisation and Reconstruction of Financial Assets
Enforcement of Security Interest Act, 2002 and the Advocate
Commissioner is likely to take over physical possession of
the mortgaged property soon. It is in such circumstances,
that the petitioners have filed Ext.P6 I.A. No.680 of 2024
seeking to advance the Securitisation Application from
04.04.2024 to a near date for hearing.
6. Standing Counsel entered appearance on behalf
of the respondent and resisted the original petition. The
Standing Counsel submitted that the petitioners are
consistent defaulters and huge amounts are due to the Bank
and the dues exceed Rs.5,72,00,000/-. The petitioners were
comfortably sitting after filing the SA without making any
payment. When the Section 14 proceedings are initiated, the
petitioners have approached this Court. The O.P.(DRT) is
without any merit and is liable to be dismissed, contended
the respondent.
7. I have heard the learned Counsel appearing for
the petitioners and the learned Standing Counsel
representing the respondent.
8. The petitioners have now filed Ext.P6 I.A. No.680
of 2024 seeking advancement of the Securitisation
Application from 04.04.2024, invoking Section 19 (25) of the
Recovery of Debts Due to Banks and Financial Institutions
Act. The property mortgaged by the petitioners is under the
threat of take over. In the circumstances, it would be only just
and proper that the Debts Recovery Tribunal-I considers
Ext.P6 application expeditiously.
OP(DRT) is therefore disposed of directing the Debts
Recovery Tribunal-I, Ernakulam to consider Ext.P6 I.A. and
take appropriate decision thereon in accordance with law
within a period of two weeks. It is made clear that I have not
expressed anything on merit over the claims of either parties.
Sd/-
N. NAGARESH
JUDGE
AMR
APPENDIX OF OP (DRT) 84/2024
PETITIONER'S EXHIBITS
Exhibit P1 TRUE COPY OF THE SA NO. 65 OF 2020
FILED BEFORE THE DEBTS RECOVERY
TRIBUNAL-I ERNAKULAM.
Exhibit P2 TRUE COPY OF THE IA NO.316 OF 2020 IN
SA NO. 65 OF 2020 FILED BEFORE THE
DEBTS RECOVERY TRIBUNAL-I ERNAKULAM.
Exhibit P3 TRUE COPY OF THE ONLINE PROCEEDINGS
DATED 22.02.2020 IN IA NO.316 OF 2020
IN SA NO. 65 OF 2020 FILED BEFORE THE
DEBTS RECOVERY TRIBUNAL-I ERNAKULAM.
Exhibit P4 TRUE COPY OF THE WRITTEN STATEMENT
FILED BY THE RESPONDENT BEFORE THE
DEBTS RECOVERY TRIBUNAL-I ERNAKULAM
DATED 05.09.2023.
Exhibit P5 TRUE COPY OF THE NOTICE DATED
09.01.2024 FROM THE ADVOCATE
COMMISSIONER IN M.C NO. 848 OF 2023 OF
CHIEF JUDICIAL MAGISTRATE COURT,
MANJERI.
Exhibit P6 TRUE COPY OF THE IA NO. 680 OF 2024
FILED BY THE PETITIONER BEFORE THE
DEBTS RECOVERY TRIBUNAL-I ERNAKULAM
DATED 08.02.2024.
