Kerala High Court
Navas Sulaiman vs The Authorized Officer on 23 May, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 23RD DAY OF MAY 2024 / 2ND JYAISHTA, 1946
WP(C) NO. 18164 OF 2024
PETITIONERS:
1 NAVAS SULAIMAN, AGED 50 YEARS, S/O. SULAIMAN,
RESIDING AT KANGAMVELIYIL HOUSE, MANNANCHERRY P.O
PONNAD, ALAPPUZHA DISTRICT, PIN - 688538
2 SHANIDA S H
AGED 46 YEARS
W/O NAVAS, KANGAMVELIYIL HOUSE, MANNANCHERRY P.O
PONNAD, ALAPPUZHA DISTRICT., PIN - 688538
BY ADVS.
B.S.SIVAJI
K.N.VENUGOPALA PANICKER
DHANYA SREENIVASAN
PARVATHY B.
RESPONDENTS:
1 THE AUTHORIZED OFFICER
SOUTH INDIAN BANK LTD, REGIONAL OFFICE,
THIRUVALLA, TMJ COMPLEX, RAMAN CHIRA, MUTHOOR P.O
THIRUVALLA, PATHANAMTHITTA DISTRICT, PIN - 689107
2 THE MANAGER
THE SOUTH INDIAN BANK LTD, ALAPPUZHA
BRANCH,CONVENT SQUARE, ALAPPUZHA DISTRICT-688001
BY ADVS.
SUNIL SHANKAR A
VIDYA GANGADHARAN(K/000424/2020)
GAYATHRI.M.M(K/003350/2022)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 23.05.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) No.18164 of 2024
2
JUDGMENT
Dated this the 23rd day of May, 2024
The petitioners have approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the South Indian Bank Limited to the petitioners,
invoking the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002.
2. The Bank paid ₹40 lakhs towards Cash Credit
facility, ₹8.24 lakhs towards Term Loan, ₹47 lakhs and
₹25 lakhs towards two Housing Loans to the petitioners. The
petitioners state that though the petitioners made remittances
promptly during the initial repayment period of the financial
advance, they could not pay the repayment instalments
promptly later due to financial stringency. The repayment of
loan / advance fell into arrears later. It happened due to
reasons beyond the control of the petitioners.
3. Though the petitioners requested the Bank to
permit the petitioners to repay the overdue amounts in easy
monthly instalments, 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 Ext.P8 notice.
4. The petitioners state that they are still in a position
to clear the overdue amounts towards the loan, if sufficient
time is given to clear the dues in easy monthly instalments. If
the respondents are permitted to continue with the coercive
proceedings and auction the secured assets provided by the
petitioners, they 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
petitioners. On behalf of the respondents, it is submitted that
the petitioners committed default in repaying the loan /
maintaining the advance. The Bank repeatedly reminded the
petitioners and required them to clear the dues. The
petitioners deliberately omitted to do so. In the circumstances,
the Bank had no other go than to proceed against the
petitioners invoking the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002. The impugned Ext.P8 was issued
in these circumstances. The petitioners have not advanced
any legal reasons to thwart the coercive proceedings initiated
by the Bank.
6. The Standing Counsel, however, submitted that if
the petitioners are ready and willing to remit the outstanding
amount in instalments, a short breathing time can be granted
to the petitioners to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from
the petitioners as on 20.05.2024 is ₹1,25,58,646.12.
7. I have heard the counsel for the petitioners and the
Standing Counsel representing the Bank.
8. The specific case of the petitioners is that the
petitioners have 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
petitioners. The petitioners have provided substantial security
which will safeguard the interest of the Bank.
9. 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 petitioners to clear off the liability.
10. The writ petition is therefore disposed of with the
following directions:
(i) The petitioners shall remit the
outstanding amount of ₹1,25,58,646.12 in six
consecutive and equal monthly instalments
along with accruing interest and other Bank
charges, if any. First of such instalments
shall be paid on or before 15.06.2024.
(ii) If the petitioners commit single default
in making payments as directed above, the
respondents will be at liberty to continue with
the coercive proceedings against the
petitioners in accordance with law.
(iii) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
spk
APPENDIX OF WP(C) 18164/2024
PETITIONER EXHIBITS
Exhibit -P1 TRUE COPY OF THE NOTICE REF NO. RO-
TVLA/0445/SAR/SH/6911/1650/2023-24
DATED 27/12/2023.
Exhibit -P2 TRUE COPY OF THE NOTICE REF NO. RO-
TVLA/0445/SAR/SH/6951/1651/2023-24
DATED 27/12/2023.
Exhibit -P3 TRUE COPY OF THE REQUEST DATED
25/03/2024 SUBMITTED BY THE 1ST
PETITIONER BEFORE THE REGIONAL
MANAGER, SOUTH INDIAN BANK LTD.
Exhibit -P4 TRUE COPY OF THE REQUEST DATED
25/03/2024 SUBMITTED BY THE 2ND
PETITIONER BEFORE THE REGIONAL
MANAGER, SOUTH INDIAN BANK LTD.
Exhibit -P5 TRUE COPY OF THE REPLY DATED
26/03/2024.
Exhibit -P6 TRUE COPY OF THE STATEMENT OF ACCOUNTS
IN RESPECT OF ACCOUNT
NO.0445656000000113 OF THE 1ST
PETITIONER FOR THE PERIOD 06/06/2020
TO 29/02/2024.
Exhibit -P7 TRUE COPY OF THE STATEMENT OF ACCOUNTS
IN RESPECT OF ACCOUNT
NO.0445655000000111 OF THE 2ST
PETITIONER FOR THE PERIOD 16/12/2017
TO 29/02/2024.
Exhibit -P8 TRUE COPY OF THE POSSESSION NOTICE
DATED 09/05/2024.
