Kerala High Court
M/S Worldecor vs The Authorized Officer on 28 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 28TH DAY OF JUNE 2024 / 7TH ASHADHA, 1946
WP(C) NO. 28917 OF 2022
PETITIONER:
M/S WORLDECOR
DOOR NO.11/640, J, KARIMBULLY,
MARUTHUR P.O, PATTAMBI, PALAKKAD
REP.BY MANAGING PARTNER,
MOHAMMED BASHEER CT, AGED 41 YEARS,
S/O KUNJIMUHAMMEDCT, CHETTIYARTHODI HOUSE,
KURUVATTOOR, VALLAPUZHA,
PALAKKAD, PIN - 679306.
BY ADVS.
PRAVEEN K. JOY
N.ABHILASH
RESPONDENTS:
1 THE AUTHORIZED OFFICER
DHANLAXMI BANK PATTAMBI BRANCH
DOOR NO.5/1672, FIRST FLOOR YEMKAY TRADE
CENTER, MAIN ROAD, PATTAMBI - 679303.
2 BRANCH MANAGER
DHANLAXMI BANK PATTAMBI BRANCH
DOOR NO.5/1672, FIRST FLOOR YEMKAY TRADE
CENTER, MAIN ROAD, PATTAMBI - 679303.
3 COMMITTEE FOR STRESSED MSME (MICRO,
SMALL AND MEDIUM ENTERPRISES)
DHANLAXMI BANK DHANLAXMI BANK HEAD OFFICE
DHANLAXMI BUILDINGS, NAIKKANAL
THRISSUR, PIN - 680022.
4 DIRECTOR OF INDUSTRIES AND COMMERCE
GOVERNMENT OF KERALA VIKAS BHAVAN. P.O
THIRUVANANTHAPURAM, PIN - 695033.
W.P.(C)No.28917 of 2022
:2:
5 MSME CREDIT MONITORING CELL
OFFICE OF THE DC (MSME) ROOM NO.734 B,
7TH FLOOR A-WING, NIRMAN BHAVAN,
MAULANA AZAD ROAD, NEW DELHI - 110108.
BY ADVS.
SRI.BINOY DAVIS, GOVERNMENT PLEADER
SRI.T.C.KRISHNA, SCGC
SRI.C.K.KARUNAKARAN
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 28.06.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P.(C)No.28917 of 2022
:3:
JUDGMENT
Dated this the 28th day of June, 2024
The petitioner, a Partnership Firm running in the name
and style M/s.Worldecor, has approached this Court when the
respondents have initiated coercive proceedings invoking the
provisions of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002.
2. In this writ petition, the petitioner prayed that the
respondents be directed to take up Ext.P6 statutory
application and formulate a committee and to keep in
abeyance further proceedings against the petitioner till Ext.P6
is considered and a decision is taken.
3. The petitioner has relied upon the revival and
rehabilitation framework of MSME institutions for seeking
reliefs.
4. Standing Counsel entered appearance and resisted
the writ petition. The Standing Counsel submitted that the
petitioner was granted a Cash Credit Facility of ₹2.5 Crores in
the year 2016 and the outstanding amount has accumulated to
₹4,19,09,509/- as on 24.06.2024. The petitioner is inter alia
seeking to settle the loan account by One Time Settlement. If
the petitioner remits an amount of ₹1 Crore, then the
application for settlement of loan account can be considered.
5. The petitioner, on the other hand, would submit that
the normal upfront payment is 10% of the settlement amount
and the petitioner may not be subjected to harsh conditions.
6. Taking into consideration the entire facts of the
case and taking into consideration the fact that the petitioner
has remitted an amount of ₹10 lakhs pursuant to the interim
direction of this Court, I am of the view that the petitioner's
application for One Time Settlement can be considered as per
rules of the respondents.
The writ petition is disposed of directing that if the
petitioner makes application for One Time Settlement, paying
the upfront payment as per the rules of the Bank within a
period of two weeks, the same shall be considered in
accordance with law by the respondents. If the petitioner
makes an application and remits requisite upfront payment as
directed above, coercive proceedings against the petitioner
shall stand deferred till the Bank takes a decision on the One
Time Settlement Application.
Sd/-
N. NAGARESH
JUDGE
ams
APPENDIX OF WP(C) 28917/2022
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE UDHYAM REGISTRATION
CERTIFICATE WITH REGISTRATION NUMBER
KL-10-0005877
Exhibit P2 TRUE COPY OF THE RELEVANT PAGE OF E-
MAIL ISSUED BY THE RESPONDENT BANK TO
THE PETITIONER DATED 01.08.2022
Exhibit P3 TRUE COPY OF THE POSSESSION NOTICE
DATED 10.02.2022 ISSUED BY THE 2ND
RESPONDENT
Exhibit P4 TRUE COPY OF THE REPRESENTATION
SUBMITTED BEFORE THE RESPONDENT BANK
DATED 26.08.2022
Exhibit P5 TRUE COPY OF RELEVANT PAGE OF THE
ORDER DATED 17.03.2016 OF RBI/2015-
16/338 OF CHIEF GENERAL MANAGER OF
RESERVE BANK OF INDIA
Exhibit P6 TRUE PHOTOCOPY OF THE PETITION
SUBMITTED BEFORE THE 3RD RESPONDENT
DATED 26.08.2022
RESPONDENT ANNEXURES
Annexure R2 (a) A TRUE COPY OF THE LETTER SUBMITTED BY
THE PETITIONER ON 30.03.2021
Annexure R2 (b) A TRUE COPY OF THE LETTER SUBMITTED BY
THE PETITIONER ON 16.04.202
