Kerala High Court
George C.A vs The Kerala Financial Corporation on 13 January, 2025
2025:KER:2016
O.P (DRT) No.14/2025 -1-
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
MONDAY, THE 13TH DAY OF JANUARY 2025 / 23RD POUSHA, 1946
OP (DRT) NO. 14 OF 2025
PETITIONER/S:
GEORGE C.A.,
AGED 74 YEARS
S/O. ALPHONSE, RESIDING AT CHOOLACKAL HOUSE,
CHINNAKKANAL P.O., MUNNAR, PIN - 685612
BY ADVS.
SABU C.J
S.ANIL KUMAR (TRIVANDRUM)
RAHUL A.
RESPONDENT/S:
1 THE KERALA FINANCIAL CORPORATION,
THIRUVANANTHAPURAM (REPRESENTED BY ITS CHAIRMAN &
MANAGING DIRECTOR, HEAD OFFICE, THIRUVNANTHAPURAM), PIN
- 695036
2 THE MANAGER, KERALA FINANCIAL CORPORATION,
BRANCH OFFICE, THODUPUZHA, PIN - 685608
3 THE AUTHORISED OFFICER,
S.A.R.B-CENTRAL ZONE, FINANCE TOWER, KALOOR, KOCHI, PIN
- 682017
4 STATE OF KERALA,
(REPRESENTED BY CHIEF SECRETARY), GOVERNMENT
SECRETARIATE, THIRUVANANTHAPURAM, PIN - 695001
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O.P (DRT) No.14/2025 -2-
5 THE EXECUTIVE ENGINEER,
PWD ROADS & BRIDGES DIVISION, ERNAKULAM, TRIKKAKKARA
P.O., PIN - 682021
6 SRI. P.S. SATHEESHKUMAR,
S.N. SADANAM, POOPANI ROAD, PERUMBAVOOR P.O.,
ERNAKULAM, PIN - 683542
7 SRI. N.K. SATHY,
S.N. SADANAM, POOPANI ROAD, PERUMBAVOOR P.O.,
ERNAKULAM, PIN - 683542
8 DEBTS RECOVERY TRIBUNAL-II, ERNAKULAM,
REPRESENTED BY ITS REGISTRAR, 5TH FLOOR, KERALA STATE
HOUSING BOARD BUILDING, PANAMPALLY NAGAR, KOCHI, PIN -
682036
BY ADVS.
ADV. VENUGOPAL M.R.
S. MUHAMMAD ALIKHAN(K/000644/2020)
ANJANA S. RAJ(K/001318/2024)
DHANYA P.ASHOKAN (SR.)(K/001671/2000)
OTHER PRESENT:
STM. DHANYA VENUGOPAL (SR.), SRI. P.S.APPU, GP
THIS OP (DEBT RECOVERY TRIBUNAL) HAVING COME UP FOR ADMISSION
ON 13.01.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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O.P (DRT) No.14/2025 -3-
JUDGMENT
The petitioner is aggrieved by Ext.P4 order passed on appeal
No.17/2024 challenging an order issued by the Registrar, Debts Recovery
Tribunal-II, Ernakulam refusing to register the securitization application filed
under Section 17 of the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the
SARFAESI Act) on the ground that the State of Kerala and the Executive
Engineer, Public Works Department (Roads and Bridges) are not necessary
parties and cannot be impleaded in a proceedings before the Tribunal under
Section 17 of the SARFAESI Act.
2. The learned counsel for the petitioner submits that the petitioner is a
guarantor in respect of loan availed by the 6 th respondent from the 1st
respondent. It is submitted that the 6 th respondent is a civil contractor and
several amounts are owed to him by the Public Works Department (PWD). It
is submitted that while availing the loan the Kerala Financial Corporation had
obtained Power of Attorney enabling them to collect amounts due to the 6 th
respondent directly from the Government. It is submitted that in such
circumstances the State of Kerala and the Executive Engineer, PWD are
necessary parties to the securitization application.
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3. The learned Senior counsel appearing for the 1st respondent on the
instructions of Adv. M.R. Venugopal submits that the Tribunal exercises
limited jurisdiction and can only examine correctness or otherwise of the
steps taken under the provisions of the SARFAESI Act and cannot examine or
pass any orders in respect of disputes with the State of Kerala or the PWD. It
is submitted that in such circumstances, finding of the Tribunal that the State
of Kerala and the PWD are not necessary parties to the securitisation
application is correct in law and warrants no interference at the hands of this
court in exercise of jurisdiction of this court under Article 227 of the
Constitution of India.
4. Having heard the learned counsel for the petitioner and the learned
Senior counsel appearing for the 1st respondent Corporation and having
perused Ext.P4 order of the Tribunal I find that the Tribunal has correctly
found that the State of Kerala and the PWD are not necessary parties to the
securitization application filed before the Tribunal. In the facts and
circumstances of the cases, even assuming that the case of the petitioner that
several amounts are due from the PWD are accepted, the Tribunal is not in a
position, while entertaining an application under Section 17 of the SARFAESI
Act, to issue any direction with regard to the payment or collection of such
amounts from the PWD. The jurisdiction exercised by the DRT under the
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provisions of the SARFAESI Act is a limited jurisdiction and it cannot issue
any direction outside the scope of the provisions of the SARFAESI Act.
Therefore the view taken by the Tribunal in Ext.P4 is the correct view and
warrants no interference at the hands of this court in an original petition
under Article 227 of the Constitution of India.
5. Faced with the situation, the learned counsel for the petitioner
submits that the petitioner may be given two weeks time to make necessary
amendments to the securitisation application and seek appropriate interim
orders from the Tribunal. I consider this request to be reasonable. Therefore
this original petition will stand disposed of directing that the petitioner shall
be given two weeks time from today to make necessary amendments to the
securitisation application filed before the Tribunal. Status-quo as on today
shall be maintained for a period of two weeks to enable the petitioner to move
the application for appropriate interim orders before the Tribunal within the
aforesaid period of two weeks. I make it clear that I have not expressed any
opinion on the merits of the matter and it will be open to the DRT to pass any
order, interim or final in accordance with the law.
Original petition is disposed of as above.
Sd/-
GOPINATH P.
JUDGE
AMG
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APPENDIX OF OP (DRT) 14/2025
PETITIONER ANNEXURES
Annexure A1 COPY THE LOAN AGREEMENT NO 150132256/260/2015
DATED 13-08-2015.
Annexure A2 COPY OF LETTER DATED 13-08-2015 ADDRESSED TO
THE MANAGING DIRECTOR, KFC.
Annexure A3 COPY OF THE POWER OF ATTORNEY DATED 28-07-
2015 EXECUTED BY THE 6TH DEFENDANT IN RESPECT
OF AGREEMENT NO:17/SCCA/2015-16
Annexure A4 COPY OF THE POWER OF ATTORNEY DATED 28-07-
2015 EXECUTED BY THE 6TH DEFENDANT IN RESPECT
OF AGREEMENT NO:18/SCCA/2015-16
Annexure A5 COPY OF THE LETTER NO:A6-3285/13 DATED 04-08-
2015 OF THE EXECUTIVE ENGINEER.
Annexure A6 COPY OF THE LETTER NO:A1- 1211/14 DATED 04-
08-2015 OF THE EXECUTIVE ENGINEER.
Annexure A7 COPY OF THE CONTRACT OF GUARANTEE DATED 17-
08-2015.
Annexure A8 COPY OF NOTICE NO. 2019/2856/06 DATED 02-08-
2023. 10
Annexure A9 COPY OF POSSESSION NOTICE NUMBER: KFC/SARB-
CZ/150132256/64/2024-2025 DATED 19-06-2024.
Annexure A1 in COPY OF ORDER DATED 06-09-2024 OF THE
Exhibit P3 REGISTRAR IN UN-NUMBERED SA (DIARY
NO.1306/2024)
Annexure A2 in COPY OF POSTAL ENVELOP RECEIVED BY THE
Exhibit P3 APPELLANT ON 26-06-2024
Exhibit P1 THE TRUE COPY OF THE UNREGISTERED
SECURITISATION APPLICATION (DIARY NO.
1306/2024)
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Exhibit P2 THE TRUE COPY OF THE ORDER OF THE REGISTRAR
DATED 6TH SEPTEMBER, 2024 IN UNREGISTERED
SECURITISATION APPLICATION (DIARY NO.
1306/2024)
Exhibit P3 THE TRUE COPY OF THE CHAMBER APPEAL NO. 17 OF
Exhibit P4 THE COPY OF THE CERTIFIED COPY OF THE
PROCEEDINGS DATED 24.09.2024 IN CHAMBER
APPEAL NO. 17 OF 2024
Exhibit P5 THE COPY OF THE REPLY OF THE FIFTH RESPONDENT
DATED 03.09.2024
