Kerala High Court
Binumon.P vs South Indian Bank Ltd., Rep. By Its ... on 21 June, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 21ST DAY OF JUNE 2024 / 31ST JYAISHTA, 1946
WP(C) NO. 19862 OF 2024
PETITIONER:
BINUMON.P
AGED 49 YEARS, S/O. PADMANABHAN M.,
M/S. AVANA CHICKEN 2/203-B1
MOONJELY JUNCTION, WEST CHALAKUDY,
THRISSUR, PIN - 680 307.
BY ADV
E.V.MOLY
RESPONDENT:
SOUTH INDIAN BANK LTD.,
REP. BY ITS AUTHORISED OFFICER
REGIONAL OFFICE, VI/950-C & D, AKP CENTRE,
CHRIST COLLEGE ROAD, CHRIST NAGAR,
IRINJALAKKUDA THRISSUR DISTRICT.,
PIN - 680 215.
BY ADV
P.A.AUGUSTINE (AREEKATTEL)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 21.06.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C) No.19862 of 2024
2
JUDGMENT
Dated this the 21st day of June, 2024
The petitioner is one of the guarantors for the
Cash Credit facility of Rs.350 lakhs in the name of
M/s. Avanna Chickens, which is an entrepreneurship being
operated in the name of petitioner's mother
Smt. Thankamma V.K. since the year 2009. M/s. Avanna
Chickens, is a proprietary concern being operated for sale of
chicken mainly in four Districts in Kerala.
2. As the repayment was regular, an additional
facility of Rs.70,68,000/- was sanctioned during Covid-19
pandemic as ECLGS Loan for 36 monthly instalments
commencing from 08.07.2021. However, after Covid-19
pandemic, the business was facing stress as the amount due
from various creditors in the market could not be collected
and the default occurred.
3. The borrower had so far remitted Rs.1.38 Crores
since the date of issuance of demand notice till the
submission of application for renewal of the account
submitted in October, 2023, as directed by the respondent-
Bank. However, for no good reason the application for
renewal was rejected by the authorities without even issuing
a communication in this regard to the applicant borrower.
The petitioner requires reasonable time by way of installment
to settle the liability, if, the relief sought for renewal /
upgradation is not permitted, contends the petitioner.
4. Standing Counsel entered appearance on behalf
of the respondent and resisted the writ petition. The Standing
Counsel, on behalf of the Bank, submitted that the petitioner
was granted CCOL facility of Rs.3.5 Crores on 25.02.2019.
Subsequently, a ECLGS Loan was also granted for an
amount of Rs.70.68 lakhs in the year 2020. The loan
accounts were soon declared as NPA on 18.02.2022, due to
the failure of the borrower to maintain the loan account.
5. The Bank has therefore forced to issue a notice
under Section 13(2) of the Securitisation and Reconstruction
of Financial Assets and Enforcement of Security Interest Act,
2002, on 17.04.2024. The borrower thereafter approached
this Court filing W.P.(C) No.24608 of 2022. This Court
granted the borrower an opportunity to clear the overdue
amount under the Cash Credit facility on or before
20.08.2022. As regards clearing off ECGLS facility, the
borrower was granted time upto 15.09.2022. R.P No.1257 of
2022 was filed by the borrower against Ext.P5 judgment. The
said review petition was dismissed as per Ext.P7 judgment
dated 22.12.2023.
6. Thereafter, the borrower approached the Debts
Recovery Tribunal filing Securitisation Application. The said
Securitisation Application is still pending before the Debts
Recovery Tribunal.
7. The Standing Counsel further pointed out that as
the borrower failed to secure interim order from the Debts
Recovery Tribunal, the borrower filed W.P.(C) No.29083 of
2023. Finally, the borrower sought to withdraw that writ
petition. The said writ petition was dismissed as withdrawn.
The borrower had also approached the Munsiff's Court,
Chalakudy, filing O.S. No.127 of 2024. When the Munsiff's
Court rejected the application for interim injunction, the
borrower filed C.M.A. No.16 of 2024 before the Sub Court,
Irinjalakuda. The said C.M.A. is pending before the Sub
Court. The outstanding amount payable by the borrower as
on 01.06.2024 is Rs.3,96,94,523/-. In the facts of the case,
the writ petition is not maintainable.
8. I have heard the learned Counsel appearing for
the petitioner and the learned Standing Counsel representing
the Bank.
9. It is evident from the pleadings that what is
extended to the borrower is only a Cash Credit facility of
Rs.3.5 Crores in the year 2019. A ECLGS loan was also
granted, for an amount of Rs.70.68 lakhs in the year 2020.
The loan accounts were soon declared as NPA within three
years, on 18.02.2022. Securitisation proceedings were
initiated by the Bank which issued notice under Section 13(2)
of the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002.
10. The pleadings and arguments would indicate that
the borrower had approached this Court multiple times and
also the Debts Recovery Tribunal. The borrower either failed
to obtain interim orders from the Tribunal / Court or failed to
adhere to the conditions in the interim order granted by the
court.
11. When this writ petition came up for admission, this
Court passed an interim order on 05.06.2024 directing that if
the petitioner remits an amount of Rs.30 lakhs within a period
of two weeks and a further amount of Rs.70 lakhs on or
before 27.06.2024, coercive proceedings against the
petitioner shall stand deferred till 29.06.2024. It is conceded
by both sides that the petitioner has not paid any amount
pursuant to the direction of this Court on 05.06.2024. The
petitioner would seek a week's time to pay the amount of
Rs.30 lakhs as directed by this Court.
12. Taking into consideration the afore facts and
circumstances of the case, I am not inclined to grant any
further discretionary reliefs to the petitioner.
Therefore, the writ petition is dismissed.
Sd/-
N. NAGARESH
JUDGE
AMR
APPENDIX OF WP(C) 19862/2024
PETITIONER'S EXHIBITS
Exhibit P1 THE TRUE COPY OF THE CERTIFICATE OF
REGISTRATION, ISSUED UNDER KVAT RULES
2005, DATED 24.11.2009 IN THE NAME OF
M/S. AVANA CHICKEN REPRESENTED BY ITS
PROPRIETOR.
Exhibit P2 THE TRUE COPY OF THE GST REGISTRATION
CERTIFICATE UNDER REG.NO.32
KJUPT6817FIZR DATED 21.09.2017.
Exhibit P3 THE TRUE COPY OF THE UDYAM
REGISTRATION CERTIFICATE DATED
02.11.2022.
Exhibit P4 THE TRUE COPY OF THE SANCTION LETTER
DATED 25.02.2019 ISSUED BY RESPONDENT
BANK'S BRANCH AT CHALAKUDY.
Exhibit P5 THE TRUE COPY OF THE JUDGMENT DATED
03.08.2022 IN WPC.NO.24608/2022.
Exhibit P6 THE TRUE COPY OF THE JUDGMENT DATED
20.12.2022 IN WPC.NO.38474/2022.
Exhibit P7 THE TRUE COPY OF THE JUDGMENT IN
RPNO.1257/2022 IN WPC.24608/2022 DATED
22.12.2023.
Exhibit P8 THE TRUE COPY OF THE VALUATION
CERTIFICATE DATED 01.02.2024.
