Kerala High Court
Muneer A. M vs Kerala State Financial Enterprise ... on 14 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:85135
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 14TH DAY OF NOVEMBER 2024/23RD KARTHIKA, 1946
WP(C) NO. 40345 OF 2024
PETITIONERS:
1 MUNEER A. M
AGED 47 YEARS, S/O ABDUL MAJEED;
RESIDING AT: MUJEEB MANZIL, CHERUNNIYUR,
MELEVETOOR, THIRUVANANTHAPURAM,
PIN - 695 312.
2 REEJA A
AGED 39 YEARS, W/O MUNEER A.M.
RESIDING AT: MUJEEB MANZIL, CHERUNNIYUR,
MELEVETOOR, THIRUVANANTHAPURAM, PIN - 695 312.
BY ADVS.
R.RAJESH (VARKALA)
MANU RAMACHANDRAN
M.KIRANLAL
SAMEER M NAIR
T.S.SARATH
SAILAKSHMI MENON
RESPONDENTS:
1 KERALA STATE FINANCIAL ENTERPRISE LIMITED
REPRESENTED BY MANAGER, KODAPANAKUNNU BRANCH,
SITUATED AT: KODAPANAKUNNU, THIRUVANANTHAPURAM,
PIN - 695 043.
2 SPECIAL DEPUTY TAHASILDAR (RR),
KERALA STATE FINANCIAL ENTERPRISE;
OFFICE AT: NEW TRIDA CENTRE, 2ND FLOOR,
MEDICAL COLLEGE P.O., THIRUVANANTHAPURAM,
PIN - 695 011.
2024:KER:85135
W.P.(C) No.40345 of 2024
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BY ADVS
SALIL NARAYANAN K.A., STANDING COUNSEL
RESMI THOMAS, GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 14.11.2024, THE COURT ON THE SAME DAY DELIVERED
THE FOLLOWING:
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W.P.(C) No.40345 of 2024
:3:
JUDGMENT
Dated this the 14th day of November, 2024
The petitioners have approached this Court aggrieved
by the coercive proceedings for recovery of financial advance
made by the Kerala State Financial Enterprises Limited to the
petitioners, invoking the provisions of the Kerala Revenue
Recovery Act, 1968.
2. The 1st respondent paid a prized chitty of
₹30 lakhs to the petitioners in the year 2019. The petitioners
state that though the petitioners made remittances promptly
during the initial repayment period of the financial advance, they
could not pay the subscriptions promptly later. The repayment of
advances fell into arrears later. It happened due to reasons
beyond the control of the petitioners.
3. Though the petitioners requested the
1st respondent to permit the petitioners to repay the overdue
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amounts in easy monthly instalments, the respondent authorities
were not yielding. The authorities, instead, started coercive
proceedings, invoking the provisions of the Kerala Revenue
Recovery Act, 1968 and issued notices.
4. The petitioners state that they are still in a
position to clear the overdue amounts towards the advances, 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 mortgaged properties
provided by the petitioners, they will be put to untold hardship
and loss.
5. Standing Counsel entered appearance on
behalf of the 1st respondent and denied all the statements made
by the petitioners. On behalf of the 1st respondent, it is submitted
that the petitioners committed default in repaying the advances.
6. The 1st respondent repeatedly reminded the
petitioners and required him to clear the dues. The petitioners
deliberately omitted to do so. In the circumstances,
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st
the 1 respondent had no other go than to proceed against the
petitioners invoking the provisions of the Kerala Revenue
Recovery Act, 1968. The petitioners have not advanced any
legal reasons to thwart the coercive proceedings initiated by the
1st respondent.
7. The Standing Counsel, however, submitted that
if the petitioners are ready and willing to make a substantial
payment soon and remit the balance outstanding amount
immediately thereafter, 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 1st respondent
from the petitioners as on 30.11.2024 is ₹32,01,259/-.
8. I have heard the learned Counsel for the
petitioners, the learned Standing Counsel representing the
Kerala State Financial Enterprises Limited and the learned
Government Pleader representing the 2nd respondent.
9. The specific case of the petitioners is that the
petitioners have been making the repayment and maintaining the
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loan account initially. The default in repayment of the advances
occurred lately due to reasons beyond the control of the
petitioners. The petitioners have provided substantial security
which will safeguard the interest of the 1st respondent.
10. 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.
11. The writ petition is therefore disposed of with
the following directions:
(i) The petitioners shall remit the
outstanding amount of ₹32,01,259/- in 18
consecutive and equal monthly instalments
along with accruing interest and other
administrative charges, if any. First of such
instalments shall be paid on or before
16.12.2024.
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(ii) If the petitioners commit single default
in making payments as directed above,
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
AMR
2024:KER:85135
APPENDIX OF WP(C) 40345/2024
PETITIONERS' EXHIBITS
Exhibit P1 A TRUE COPY OF THE PETITIONER CHIT
ACCOUNT DETAILS ISSUED BY 1ST
RESPONDENT.
Exhibit P2 A TRUE COPY OF THE DEMAND NOTICE ISSUED
BY 1ST RESPONDENT AS ON 21.10.2022.
Exhibit P3 A TRUE COPY OF THE DEMAND NOTICE UNDER
SECTION 34 OF KERALA REVENUE RECOVERY
ACT BY 2ND RESPONDENT DATED 31.12.2022.
Exhibit P4 A TRUE COPY OF THE ATTACHMENT NOTICE
UNDER SECTION 36 OF KERALA REVENUE
RECOVERY ACT BY 2ND RESPONDENT DATED
18.05.2023.
Exhibit P5 A TRUE COPY OF THE DIRECTION OF RBI AS
PRUDENTIAL FRAMEWORK FOR RESOLUTION OF
STRESSED ASSET 2019.
Exhibit P6 A TRUE COPY OF THE CORONARY ANGIOGRAM
AND ANGIOPLASTY REPORT DATED 13.05.2022.
Exhibit P7 A TRUE COPY OF THE PETITIONER'S
REPRESENTATION TO 1ST RESPONDENT AS ON
12.06.2023.
Exhibit P8 A TRUE COPY OF THE JUDGEMENT IN WPC
20859 OF 2023 DATED 23.06.2023.
Exhibit P9 A TRUE COPY OF THE PETITIONER'S DETAILED
PROPOSAL DATED 12.07.2023.
Exhibit P10 A TRUE COPY OF WRITTEN ENDORSEMENT OF
PETITIONER'S PLEA HANDED OVER TO
PETITIONER BY RESPONDENT AS ON
08.08.2023.
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Exhibit P11 A TRUE COPY OF RECEIPT REGARDING PAYMENT
TO RESPONDENT AS ON 19.07.2023.
