Kerala High Court

George Joseph vs State Bank Of India on 21 February, 2025

Author: N.Nagaresh

Bench: N.Nagaresh

                                                           2025:KER:15138

                IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                     PRESENT

                     THE HONOURABLE MR.JUSTICE N.NAGARESH

FRIDAY, THE 21ST DAY OF FEBRUARY 2025 / 2ND PHALGUNA, 1946

                           OP (DRT) NO. 192 OF 2024

           AGAINST THE ORDER DATED 20.09.2023 IN IA NO.2531 OF

2017       IN   SA    NO.295   OF   2009   OF   DEBT   RECOVERY   TRIBUNAL,

ERNAKULAM.

PETITIONERS/APPLICANTS:
    1     GEORGE JOSEPH,
          AGED 64 YEARS,
          S/O. JOSEPH, THALIYATH HOUSE,
          CHURCH LANDING ROAD, PALLIMUKKU,
          KOCHI- 682016, ERNAKULAM DISTRICT,
          NOW RESIDING AT FLAT NO.VII A,
          SHANTHI RIVER DALE, THYKOODAM P.O.,
          ERNAKULAM DISTRICT, PIN - 682019

       2        MINI GEORGE,
                AGED 57 YEARS,
                W/O.GEORGE JOSEPH, THALIYATH HOUSE,
                CHURCH LANDING ROAD,
                PALLIMUKKU, KOCHI -682016,
                ERNAKULAM DISTRICT,
                NOW RESIDING AT FLAT NO.VII A,
                SHANTHI RIVER DALE, THYKOODAM P.O.,
                ERNAKULAM DISTRICT, PIN - 682019

                BY ADVS.
                SRI.GEORGEKUTTY MATHEW
                SRI.R.PREM SANKAR


RESPONDENTS/DEFENDANTS:

       1        STATE BANK OF INDIA,
                REPRESENTED BY ITS BRANCH MANAGER,
                                               2025:KER:15138
O.P.(DRT) No.192/2024
                             :2:

           ALUVA BRANCH, ALUVA P.O.,
           ERNAKULAM DISTRICT, PIN - 683101

     2     THE AUTHORISED OFFICER AND CHIEF MANAGER,
           STATE BANK OF INDIA,
           KAHAJA SHOPPING COMPLEX,
           R.S. ROAD, ALUVA P.O.,
           ERNAKULAM DISTRICT,
           PIN - 683101


           BY ADV.
           SRI.JITHESH MENON M., SC, SBI

     THIS OP (DEBT RECOVERY TRIBUNAL) HAVING COME UP FOR
ADMISSION ON 21.02.2025, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
                                                      2025:KER:15138
O.P.(DRT) No.192/2024
                                :3:




                           JUDGMENT

Dated this the 21st day of February, 2025

The petitioners, who are applicants in S.A. No.295 of

2009 of the Debts Recovery Tribunal-I, Ernakulam, are before

this Court challenging Ext.P10 order dated 20.09.2023 in I.A.

No.2531 of 2017 in S.A.No.295 of 2009.

2. The petitioners filed I.A. seeking to appoint an

Advocate Commissioner to verify present condition of the assets

taken possession by the Bank and to break open the middle

room of the house, which is reported as locked by the Advocate

Commissioner, who took possession of the property under

Section 14 of the Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002. Ext.P8

application was dismissed by the Tribunal. The petitioners

submit that the dismissal is on extraneous considerations.

2025:KER:15138

3. Standing Counsel representing the

respondents entered appearance and resisted the O.P.(DRT).

On behalf of the respondents, a statement has been filed. The

statement would show that the Building in question was taken

possession of, on 28.10.2009. The I.A. was filed on 09.10.2017

which is after 8 years of physical possession. The Debts

Recovery Tribunal heard the matter on 16.08.2023 and passed

Ext.P10 order finding that there is no averment in Annexure B1

letter in respect of the alleged physical possession of

hypothecated movables of ₹849.39 lakhs and the petitioners

have not produced any materials to prove that the said

hypothecated movables were kept in one of the rooms in the

secured asset.

4. Respondents submitted that the Bank has

engaged a security personal, who will take care of the land,

building and movables. The delay in filing Ext.P8 I.A. would

show that the allegations raised by the petitioners are without

bona fide. The petitioners did not challenge Ext.P10 order dated 2025:KER:15138

20.09.2023 within a reasonable time. The challenge is after a

period of 8 months. The O.P.(DRT) is therefore liable to be

dismissed.

5. I have heard the learned counsel for the

petitioners and the learned Standing Counsel representing the

Bank.

6. From the application of the petitioners to

appoint Advocate commissioner for local inspection and to

ascertain the presence of movable, the Debts Recovery Tribunal

found that the physical possession of the secured assets has

already been taken by the Bank pursuant to the orders passed

by the Chief Judicial Magistrate's Court, Ernakulam. The Bank

has refuted the allegations of the petitioners with regard to the

alleged taking physical possession of the hypothecated assets.

The Bank has also produced Annexure B1 letter dated

28.10.2009 given by the 1st petitioner to the 2nd respondent.

7. The Tribunal found that there is no allegation or

averment in Annexure B1 Letter in respect of the alleged 2025:KER:15138

physical possession of the asset of ₹849.39 lakhs consisting of

new gold ornaments, gold bars, silver ornaments and diamonds

as alleged in the affidavit filed along with the present petition. On

these premises, the Debts Recovery Tribunal has rejected I.A.

No.2531 of 2017.

8. Prima facie, I find no illegality in Ext.P10 order.

The counsel for the petitioners would however submit that there

are valuable ornaments in the locker in the locked room, worth

Crores of rupees. The keys are with the petitioners. If the sale

of the secured assets is scheduled to be held on 25.02.2025, it

would be totally inappropriate to sell the Building with a locked

room and ornaments worth Crores of rupees in the locker

therein. Such sale is likely to lead to legal complications.

9. Taking into consideration the facts and

circumstances of the case, while declining to interfere with

Ext.P10 order, I find it necessary to give certain directions to

protect the interest of the petitioners as well as the Bank.

2025:KER:15138

The O.P.(DRT) is therefore disposed of directing the

petitioners to surrender the key of the room as well as locker in

question, before the Debts Recovery Tribunal before

25.02.2025. The Debts Recovery Tribunal shall take necessary

steps to make an inventory of the materials in the room/locker

and deal with the same in accordance with law. Necessary

steps in this regard shall be taken, before giving delivery of

possession of the Building to the auction purchasers, if any. The

Debts Recovery Tribunal shall also take steps for expeditious

disposal of S.A.

Sd/-

N. NAGARESH JUDGE SR 2025:KER:15138

APPENDIX OF OP (DRT) 192/2024

PETITIONERS' EXHIBITS:

Exhibit P1 TRUE COPY OF THE SALE NOTICES DATED 30.04.2009 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONERS

Exhibit P2 TRUE COPY OF THE S.A. NO. 295/2009 WITHOUT ANNEXURES IN THE FILE OF THE DEBT RECOVERY TRIBUNAL -1 AT ERNAKULAM

Exhibit P3 TRUE COPY OF THE WRITTEN STATEMENT FILED BY THE LST RESPODNENT BANK IN S.A. NO.

295/2009 ON 24.07.2012

Exhibit P4 TRUE `COPY OF THE INVENTORY STATEMENTS DATED 03.10.2009 SUBMITTED BY THE ADVOCATE COMMISSIONER IN CRL.M.P.NO. 8149/2009 IN THE FILE OF CHIEF JUDICIAL MAGISTRATE COURT:, ERMAKULAM

Exhibit P5 TRUE COPY OF THE STOCK STATEMENT DATED 31.03.2008 OBTAINED UNDER THE RIGHT TO INFORMATION ACT

Exhibit P6 TRUE COPY OF THE DELIVERY ORDER BEARING REFERENCE NO. OBE/UG/4798 DATED 26.04.2007

Exhibit P7 TRUE COPY OF THE DELIVERY ORDER BEARING REFERENCE NO. OB:UG:156 DATED 03.05.2007

Exhibit P8 TRUE COPY OF THE I.A. NO. 2531/2017 DATED 09.10.2017 IN S.A. NO. 295/2009 IN THE FILE OF DEBT RECOVERY TRIBUNAL-1 ERNAKULAM

Exhibit P9 TRUE COPY OF THE COUNTER AFFIDAVIT DATED 12.12.2017 FILED BY THE LST RESPONDENT BANK IN I.A. NO. 2531/2017 IN S.A.NO. 295/2009 IN THE FILE OF DEBT RECOVERY TRIBUNAL-1, ERNAKULAM 2025:KER:15138

Exhibit P10 TRUE COPY OF THE ORDER DATED 20.09.2023 PASSED BY THE DEBT RECOVERY TRIBUNAL-1, ERNAKULAM

Exhibit P11 TRUE PHOTOGRAPH OF THE HOUSE (1 NO.) OF THE PETITIONER

Exhibit P12 TRUE COPY OF THE OBJECTION DATED 26.11.2008 SUBMITTED BY THE PETITIONERS TO THE SECTION 13(2) NOTICE

Exhibit P13 TRUE COPY OF THE CERTIFICATE DATED 10.05.2024 ISSUED BY THE AGRICULTURAL OFFICER, KRISHIBHAVAN, MALAYATTOOR- NEELESWARAM

RESPONDENTS' ANNEXURES: