Kerala High Court
Idbi Bank Ltd vs The District Police Chief 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. 12031 OF 2024
PETITIONER:
IDBI BANK LTD.,
IDBI TOWER WTC COMPLEX, CUFFE PARADE, MUMBAI,
400 005 AND HAVING ONE OF ITS BRANCH AT M.G. ROAD,
ERNAKULAM
REPRESENTED BY MR MANOJ KUMAR,
DEPUTY GENERAL MANAGER AND AUTHORIZED OFFICER
IDBI BANK LTD,
RETAIL ASSETS CENTRE, 2ND FLOOR, IDBI BUILDING,
PANAMPILLY NAGAR, KOCHI,
PIN - 682035
BY ADVS.
P.PAULOCHAN ANTONY
SREEJITH K.
RESPONDENTS:
1 THE DISTRICT POLICE CHIEF ,
OFFICE OF THE DISTRICT POLICE CHIEF, PAVAMANI RD,
TAZHEKKOD, KOZHIKODE,
KERALA, PIN - 673004
2 THE STATION HOUSE OFFICER,
KODUVALLY POLICE STATION,KODUVALLY,
KOZHIKODE, KERALA, PIN - 673572
3 MR. ABDU RAHMAN K T.,
S/O KOYAMU HAJI,KAVIL THOUKAYIL,M
ANNIL KADAVU, AVILORA P.O.
KOZHIKODE, PIN - 673572
4 MRS. HAIMUNA,
W/O ABDU RAHIMAN K T,KAVIL THOUKAYIL,
MANNIL KADAVU, AVILORA P.O.,
KOZHIKODE, PIN - 673572
SRI.BINOY DAVIS-GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.05.2024, ALONG WITH WP(C).14095/2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) Nos.12031 & 14095 of 2024
2
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. 14095 OF 2024
PETITIONER:
ABDU RAHIMAN,
AGED 58 YEARS
S/O KOYAMU HAJI KAVILTHODUDUKAYIL,
KAVIL THODUKAYIL,MANNIL KADAVU,
AVILORA P.O, KIZHAKKOTH,
KOZHIKODE, KERALA, PIN - 673572
BY ADVS.
MUHAMMED SAFEER A.
MOHAMMED RAZALI K.A
KURIAN MAXIE
RAHUL.S
RESHMI U.N.
RESPONDENTS:
1 IDBI BANK LTD,
REPRESENTED BY ITS BRANCH MANAGER,
KALPATTA BRANCH, GROUND FLOOR
KALPATTA BYPASS JUNCTION,
WAYANAD, PIN - 673121
2 AUTHORIZED OFFICER,
IDBI BANK LTD,REPRESENTED BY ITS BRANCH
MANAGER,KALPATTA BRANCH,
GROUND FLOOR KALPATTA BYPASS JUNCTION,
WAYANAD, PIN - 673121
WP(C) Nos.12031 & 14095 of 2024
3
3 DISTRICT COLLECTOR,
WAYANAD, NH212, CIVIL STATION,
KAIRALI NAGAR, KALPETTA,
KERALA, PIN - 673122
SRI.M.S.KIRAN-R1
SRI.BINOY DAVIS-GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 23.05.2024, ALONG WITH WP(C).12031/2024, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) Nos.12031 & 14095 of 2024
4
JUDGMENT
Dated this the 23rd day of May, 2024
[W.P.(C) Nos.12031 & 14095 of 2024]
The petitioner in W.P.(C) No.14095 of 2024 has
approached this Court aggrieved by the coercive proceedings
for recovery of financial advance made by the IDBI Bank
Limited to the petitioner invoking the provisions of the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002. The 1st
respondent-Bank has filed W.P.(C) No.12031 of 2024 seeking
to direct respondents 1 and 2 to remove respondents 3 and 4
from the petition scheduled property. Hereinafter, the
petitioner in W.P.(C) No.14095 of 2024 is mentioned as 'the
petitioner' and the petitioner in W.P.(C) No.12031 of 2024 is
mentioned as 'the Bank' for reference.
WP(C) Nos.12031 & 14095 of 2024
2. The Bank paid ₹44 lakhs to the petitioner as
Overdraft in the year 2017. The petitioner states that though
the petitioner made remittances promptly during the initial
repayment period of the financial advance, he could not pay
the repayment installments promptly later due to covid-19
pandemic. The repayment of loan fell into arrears. It
happened due to reasons beyond the control of the petitioner.
3. Though the petitioner requested the Bank to permit
the petitioner to repay the overdue amounts in easy monthly
installments, 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 notice.
4. The petitioner states that he is still in a position to
clear the overdue amounts towards the loan, if sufficient time
WP(C) Nos.12031 & 14095 of 2024
is given to clear the dues in easy monthly installments. If the
respondents are permitted to continue with the coercive
proceedings and auction the secured assets provided by the
petitioner, he 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
petitioner. On behalf of the Bank, it is submitted that the
advance was given to the petitioner in the year 2017. The
petitioner committed default in maintaining the advance.
6. The Bank repeatedly reminded the petitioner and
required him to clear the dues. The petitioner deliberately
omitted to do so. In the circumstances, the Bank had no other
go than to proceed against the petitioner invoking the
provisions of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002. The impugned notice was issued in these
circumstances. The petitioner has not advanced any legal
WP(C) Nos.12031 & 14095 of 2024
reasons to thwart the coercive proceedings initiated by the
Bank.
7. Standing Counsel further submitted that the
petitioner had earlier approached this Court filing W.P.(C)
No.26879 of 2023 and this Court as per judgment dated
14.08.2023 disposed of the writ petition and directed the
petitioner to pay the overdue amount in 12 equated monthly
instalments. But, the petitioner committed default in payment
of instalments.
8. The Standing Counsel, however, submitted that if
the petitioner is ready and willing to make a substantial
payment soon and remit the balance overdue amount
immediately thereafter, a short breathing time can be granted
to the petitioner to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from
the petitioner as on 19.05.2024 is ₹22,75,876/-.
WP(C) Nos.12031 & 14095 of 2024
9. I have heard the counsel for the petitioner, the
learned Standing Counsel representing the Bank and the
learned Government Pleader.
10. The specific case of the petitioner is that the
petitioner has 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
petitioner. The petitioner has provided substantial security
which will safeguard the interest of the Bank.
11. In the facts and circumstances of the case, I am
inclined to dispose of the writ petitions giving a short and
reasonable time to the petitioner to clear off the liability.
12. The writ petitions are therefore disposed of with the
following directions:
(i) The petitioner shall remit ₹12 lakhs
within two weeks from today and the balance
outstanding amount in eight consecutive and
WP(C) Nos.12031 & 14095 of 2024
equal monthly installments immediately
thereafter along with accruing interest and
other Bank charges, if any.
(ii) The Bank should give back possession
of the property to the petitioner on the
petitioner paying ₹12 lakhs.
(iii) If the petitioner commits default in
making payments as directed above, the
petitioner will have to surrender the
possession of the property to the Bank.
(iv) If the petitioner makes payments as
directed above, coercive proceedings, if any,
against the petitioner shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
hmh
WP(C) Nos.12031 & 14095 of 2024
APPENDIX OF WP(C) 12031/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE ORDER IN CMP NO
680/2023 DATED 20.04.2023
Exhibit P2 A TRUE COPY OF THE COMMISSION REPORT
DATED 02.03.2024
Exhibit P3 A TRUE COPY OF THE POLICE COMPLAINT
DATED 02.03.2024
Exhibit P4 A TRUE COPY OF THE POLICE COMPLAINT
RECEIPT DATED 02.03.2024
WP(C) Nos.12031 & 14095 of 2024
APPENDIX OF WP(C) 14095/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE STATEMENT OF THE
LOAN ACCOUNT BEARING NO
149D651100001595 FOR THE INTERVENING
PERIOD OF 30.11.2017 TO 25.03.2024
Exhibit P2 THE TRUE COPY OF THE JUDGMENT DATED
14.08.2023 IN W.P.(C) NO. 26879 OF
Exhibit P3 A TRUE COPY OF THE REPRESENTATION
DATED 31.07.2023 SUBMITTED BY THE
PETITIONER TO THE RESPONDENT
Exhibit P4 THE TRUE COPY OF THE ELECTION URGENT
NOTICE DATED 26.02.2024 ISSUED BY THE
3 RD RESPONDENT
