Kerala High Court
Faisal Nelliyattummel vs The Federal Bank Ltd on 31 May, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 31ST DAY OF MAY 2024 / 10TH JYAISHTA, 1946
WP(C) NO. 19322 OF 2024
PETITIONER:
FAISAL NELLIYATTUMMEL
AGED 53 YEARS, S/O MOHAMMED
NELLIYATTUMMEL MEETHALE PUTHALATHE HOUSE,
IRINGATH P.O, PAYYOLI, KOZHIKODE,
PIN - 673 523.
BY ADVS.
GIGIMON ISSAC
TOBIAS TOGI MATHEW
DESY MARY K.P.
RESPONDENTS:
1 THE FEDERAL BANK LTD.,
PAYYOLI BRANCH, LCRD, KOZHIKODE DIVISION,
1ST FLOOR, FEDERAL TOWERS, MAVOOR ROAD,
KOZHIKODE REPRESENTED BY IT'S CHIEF MANAGER,
PIN - 673 016.
2 THE AUTHORIZED OFFICER,
THE FEDERAL BANK LTD., PAYYOLI BRANCH, LCRD,
KOZHIKODE DIVISION, 1ST FLOOR, FEDERAL TOWERS,
MAVOOR ROAD, KOZHIKODE, PIN - 673 016.
BY ADV
SUJESH KUMAR K P, FOR R2
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 31.05.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C) No.19322 of 2024
:2:
JUDGMENT
Dated this the 31st day of May, 2024
The petitioner, who has availed a loan facility
from the 1st respondent-Bank and who faced coercive
proceedings under the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002, filed S.A No.57 of 2023 before the Debts Recovery
Tribunal-1, Ernakulam. The S.A was dismissed by the
Tribunal. The petitioner thereupon preferred an appeal under
Section 16 of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002, before the Debts Recovery Appellate Tribunal, Chennai.
2. The petitioner filed an application for waiver of pre-
deposit. The petitioner's prayer before the Appellate Tribunal is
that the pre-deposit may be totally waived. The Tribunal,
however, rejected the application directing the petitioner to pay
50% of the amount as pre-deposit.
3. The petitioner submits that the Tribunal ought not
have imposed 50% of pre-deposit. The petitioner is ready to
deposit 25% of the amount demanded in the notice issued
under Section 13(2) of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002. The overdue amount payable by the petitioner was only
a small amount. In the circumstances, the Tribunal ought to
have exercised its discreation and ordered a lesser
pre-deposit.
4. Standing Counsel entered appearance on behalf of
the respondents and resisted the writ petition. The Standing
Counsel submitted that if the petitioner proposes to file an
appeal, the petitioner will have to make the statutory
pre-deposit. The Tribunal has exercised its discretion in the
matter. The writ petition is without any merit, contended the
Standing Counsel.
5. Heard.
6. It is evident from the pleadings that the total amount
demanded is Rs.1,65,28,750/-. The Standing Counsel would
submit that the total outstanding amount would exceed Rs.2.9
Crores. The Bank has not filed O.A invoking the Recovery of
Debts and Bankruptcy Act. The petitioner would submit that
though the Bank has recalled the entire loan, the overdue
amount would be much smaller and the petitioner is
negotiating with the Bank for a final settlement in the matter.
7. Taking into consideration the peculiar facts of the
case, I am of the view that a limited relief can be granted to the
petitioner. Accordingly, Ext.P6 order of the Debts Recovery
Appellate Tribunal, Chennai in I.A No.167 of 2024 in I.A
No.166 of 2024 in AIR (SA) No.124 of 2024 is interfered with,
to the limited extent of directing the petitioner to deposit 25%
of Rs.1,65,28,750/-, which comes to Rs.41,32,188/- within a
period of two weeks from today.
The writ petition is disposed of as above.
Sd/-
N. NAGARESH
JUDGE
AMR
APPENDIX OF WP(C) 19322/2024
PETITIONER'S EXHIBITS
Exhibit P1 TRUE COPY OF THE PETITION FILED BY THE
RESPONDENT BANK AGAINST THIS PETITIONER
BEFORE THE CJM COURT, KOZHIKODE AS CMP
NO.796/2023 DATED 11.05.2023.
Exhibit P2 TRUE COPY OF THE ORDER PASSED BY THE
CJM COURT, KOZHIKODE IN CMP NO.796/2023
DATED 11.05.2023.
Exhibit P3 TRUE COPY OF THE ORDER PASSED BY THE
DRT ERNAKULAM IN S.A NO.57/2023 DATED
15.12.2023.
Exhibit P4 TRUE COPY OF THE APPEAL MEMORANDUM
TAKEN ON THE FILES OF DRAT, CHENNAI AS
AIR NO.124/2024.
Exhibit P5 TRUE COPY OF THE I.A NO.166/2024 IN AIR
NO.124/2024 ON THE FILES OF DRAT,
CHENNAI DATED 19.01.2024.
Exhibit P6 TRUE COPY OF THE ORDER PASSED BY THE
DRAT IN I.A NO.166/2024 DATED
18.04.2024.
