M/S Seven Rights Mart vs Canara Bank
2025 Latest Caselaw 5978 Ker

Kerala High Court

M/S Seven Rights Mart vs Canara Bank on 23 August, 2025

WP(C) NO. 31728 OF 2025

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                                                      2025:KER:64133

               IN THE HIGH COURT OF KERALA AT ERNAKULAM

                               PRESENT

           THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.

     SATURDAY, THE 23RD DAY OF AUGUST 2025 / 1ST BHADRA, 1947

                       WP(C) NO. 31728 OF 2025

PETITIONERS:

    1     M/S SEVEN RIGHTS MART,
          GROUND FLOOR, NO. 7442-3, ENCLAVE THRIKKAKKARA,
          KAKKANAD, ERNAKULAM, REP. BY ITS MANAGING PARTNER,
          ASHKAR P.A., NAVUNKERY HOUSE,CHITTETHUKARA,
          CSEZ PO, COCHIN SPECIAL ECONOMIC ZONE SO,
          ERNAKULAM, PIN - 682030

    2     ASHKAR P.A.,
          AGED 53 YEARS
          S/O ABOOVACKER, NAVUNKERY HOUSE,
          CHITTETHUKARA CSEZ PO,
          COCHIN SPECIAL ECONOMIC ZONE SO,
          ERNAKULAM, PIN - 682037

    3     RAFIYA ASHKAR,
          AGED 49 YEARS
          W/O ASHKAR P A, NAVUNKERY HOUSE,
          CHITTETHUKARA, CSEZ PO,
          COCHIN SPECIAL ECONOMIC ZONE SO,
          ERNAKULAM, PIN - 682037

    4     ALTHAF ASHKAR,
          AGED 28 YEARS
          S/O ASHKAR P.A., NAVUNKERY HOUSE,
          CHITTETHUKARA, CSEZ PO,
          COCHIN SPECIAL ECONOMIC ZONE SO,
          ERNAKULAM, PIN - 682037

          BY ADVS.
          SHRI.AMBADI MURALI
          SHRI.NIDHIN K.N.
          SHRI.NEERAJ T.N.
          SHRI.GOPIKRISHNAN R.
 WP(C) NO. 31728 OF 2025

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                                                       2025:KER:64133

RESPONDENT:

          CANARA BANK,
          REP. BY ITS BRANCH MANAGER, ERNAKULAM
          AYYAPPANKAVU BRANCH, NORTH S.O KOCHI,
          46/5,GROUND FLOOR, AYYAPPANKAVU WEST ROAD,
          ERNAKULAM, KERALA, PIN - 682016



OTHER PRESENT:

          SRI. M. GOPIKRISHNAN NAMBIAR, SC.


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.08.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 31728 OF 2025

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                               JUDGMENT

This writ petition is filed with the following prayers;

" i. To issue a writ of mandamus or any other appropriate writ, order, or direction commanding the respondent bank to restructure the loan accounts of the petitioners in strict compliance with the procedures prescribed under Exhibits P7 and P8 directions.

ii. To declare that the action of the respondent bank in classifying the credit facilities availed by the petitioners as Non- Performing Assets (NPA) is illegal, arbitrary, and unsustainable, and to quash the said classification, the same having been effected without following the due process mandated under Exhibits P7 and P8 notifications iii. To issue a writ of certiorari or any other appropriate writ, order or direction quashing Ext. P2 demand notice and Ext. P5 sale notice issued by the respondent bank.

iv. To declare that the actions initiated by the respondent bank under the SARFAESI Act are illegal, void, and unsustainable, having been undertaken in violation of the mandatory procedures prescribed under Exhibits P7 and P8 notifications.

v. Issue any other writ, declaration, order or direction appropriate in the circumstances of this case."

2. The learned Standing Counsel for the respondent Bank

submits that the petitioners' accounts were declared as NPA on

13.12.2023, and that the sale of the secured asset is scheduled on

29.08.2025.

3. Under such circumstances, I am not inclined to grant any WP(C) NO. 31728 OF 2025

2025:KER:64133

relief in this writ petition. It will be open to the petitioners to approach

the Debts Recovery Tribunal under Section 17 of the SARFAESI Act.

Without prejudice to the above and without prejudice to any of the

contentions in the writ petition, the same is dismissed. To enable the

petitioners to avail of the same, all further proceedings of the bank

shall stand deferred till 28.08.2025.

The writ petition is disposed of as above.

Sd/-

MOHAMMED NIAS C.P JUDGE LU WP(C) NO. 31728 OF 2025

2025:KER:64133

APPENDIX OF WP(C) 31728/2025

PETITIONER EXHIBITS :

EXHIBIT P1 TRUE COPY OF THE UDYAM REGISTRATION CERTIFICATE BEARING NO. UDYAM-KL-02-0039448, ISSUED BY THE GOVERNMENT OF INDIA EXHIBIT P2 TRUE COPY OF THE SAID DEMAND NOTICE DATED

04.09.2023 ISSUED BY THE RESPONDENT BANK EXHIBIT P3 TRUE COPIES OF THE RECEIPTS OF PAYMENT EXHIBIT P4 TRUE COPY OF THE NOC ISSUED BY THE RESPONDENT BANK DATED 18.07.2025 EXHIBIT P5 TRUE COPY OF THE SALE NOTICE DATED 28.01.2025 ISSUED BY THE RESPONDENT BANK EXHIBIT P6 TRUE COPY OF THE REPRESENTATION DATED 20.08.2025 SUBMITTED BY THE PETITIONER EXHIBIT P7 TRUE COPY OF THE SAID MASTER DIRECTION - 2016 'LENDING TO MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) SECTOR' DATED 21.07.2016 ISSUED BY THE RBI EXHIBIT P8 TRUE COPY OF THE RELEVANT PAGES OF THE GOVERNMENT ORDER NO. S.O.(E) 1432 DATED 29.05.2015 EXHIBIT P9 ONLINE COPY OF THE JUDGMENT IN M/S PRO KNITS V. THE BOARD OF DIRECTORS OF CANARA BANK & ORS (2024 0 SC 617)

// True Copy // PA To Judge