Kerala High Court
Muhammed Haneefa vs The Kodungallur Town Co-Operative Bank ... on 30 July, 2025
WP(C) NO. 18173 OF 2025 1 2025:KER:56401
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
WEDNESDAY, THE 30th DAY OF JULY 2025 / 8TH SRAVANA, 1947
WP(C) NO. 18173 OF 2025
PETITIONER:
MUHAMMED HANEEFA, AGED 66 YEARS,
S/O ALIYAR, ARAKKAL HOUSE, MADAVANA, ERIYAD P.O,
KODUNGALLUR, THRISSUR, PIN - 680666
BY ADV SRI.MANSOOR ALI
RESPONDENTS:
1 THE KODUNGALLUR TOWN CO-OPERATIVE BANK LTD,
ATHANI BRANCH, REPRESENTED BY ITS MANAGER,
MADAVANA P.O, KODUNGALLUR THRISSUR., PIN - 680666
2 THE AUTHORIZED OFFICER AND GENERAL MANAGER,THE
KODUNGALLUR TOWN CO-OPERATIVE BANK LTD,
HEAD OFFICE, KO DUNGALLUR, KODUNGALLUR P.O,
THRISSUR, PIN - 680664
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR HEARING
ON 30.07.2025, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
WP(C) NO. 18173 OF 2025 2 2025:KER:56401
JUDGMENT
The writ petition is filed with the following prayers.
"i. To call for the records leading Ext. P1 and the
proceedings of the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act
2002 from the Respondent and issue a writ of certiorari or
other appropriate writ order of direction quashing all
proceedings under the SARFAESI Act.
ii. To declare that the proceedings of the Respondent to take
possession of the Secured Assets under the Securitization
and Reconstruction of Financial Assets and Enforcement of
Security Interest Act 2002 and the further proceedings for
sale of the secured assets under the Rules is nonest in law
and is issued strictly in violation of the Provision of the
Securitization Act and Enforcement of Security Interest and
Recovery of Debt Laws (Amendment) Act 2004 and the
Reserve Bank guidelines for Non performing Asset.
iii. To issue a writ of mandamus or other appropriate order
or direction commanding the Respondent to regularize the
loan account of the Petitioner up-to date by giving credit of
the amount remitted by the Petitioner towards loan and
permit the Petitioner to remit the loan in 30 equal monthly
installments starting from June 2025 and continue to pay
the monthly installments till it expiry on 2028 and till then
WP(C) NO. 18173 OF 2025 3 2025:KER:56401
the SARFAESI Proceedings may be kept in abeyance.
iv. To issue a writ of mandamus or other appropriate order
or direction commanding the Respondent not to proceed the
Petitioner's Secured Assets under Securitization and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act and Rules or Enforcement of Security
Interest and Recovery of Debt Laws (Amendment) Act.
v. To declare that the Respondent has absolutely no
jurisdiction to invoke the provisions of Securitization and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act and Rules or Enforcement of Security
Interest and Recovery of Debt Laws (Amendment) Act since
it is not a Non-Performing Asset as per the guidelines of the
Reserve Bank of India.
vi. To issue such other reliefs as this Hon'ble Court may
deem fit and proper in the circumstances of the case."
2. An interim order was passed by this court on 13.05.2025
as follows.
" Admit. Issue urgent notice by speed post to the respondents.
There will be an interim order staying further proceedings
pursuant to Ext.P1 on condition that the petitioner remits ₹3
lakhs within one month. Post on 13.06.2025."
3. On 18.06.2025 this court passed the following interim
order.
WP(C) NO. 18173 OF 2025 4 2025:KER:56401
This is an application seeking extension of time to comply with
the order passed by this court on 13.05.2025 stating that out of
an amount of Rs.3,00,000/- directed to be remitted, the
petitioner has already deposited an amount of Rs.1,00,000/-.
Taking note of the reasons stated in the affidavit, I am inclined
to grant further time of one month, making it clear that no
further time will be granted. I.A. is allowed as above.
Interim order is extended by one month.
Post on 16.07.2025."
4. It is not disputed before me that no amount has been
paid pursuant to the above order.
5. This Court exercises very limited jurisdiction in matters
arising under the SARFAESI Act, as repeatedly held by the
Honourable Supreme Court in several judgments, including in
South Indian Bank Ltd. and Ors. v. Naveen Mathew Philip and Ors.
[2023 17 SCC 311] that the powers conferred under Article 226 of the
Constitution of India are rather wide but are required to be
exercised only in extraordinary circumstances in matters
WP(C) NO. 18173 OF 2025 5 2025:KER:56401
pertaining to proceedings and adjudicatory scheme qua a statute,
more so in commercial matters involving a lender and a borrower,
when the legislature has provided for a specific mechanism for
appropriate redressal. When this Court is approached with a prayer
to permit the borrowers to clear the liability in instalments, the
borrowers must prove bona fides. The non-compliance of the
interim order indicates that the petitioner in this case has not
shown any bona fides to enable this Court to permit him to clear the
liability in instalments.
Accordingly, the writ petition is dismissed.
Sd/-
MOHAMMED NIAS C.P.
JUDGE
DMR/-
WP(C) NO. 18173 OF 2025 6 2025:KER:56401
APPENDIX OF WP(C) 18173/2025
PETITIONER'S EXHIBITS
Exhibit P1 THE TRUE COPY OF THE ORDER IN CRL M.P
467/2025 BEFORE THE CHIEF JUDICIAL
MAGISTRATE COURT UNDER SARFAESI ACT
DATED 13.01.2025
// TRUE COPY //
P.A. TO JUDGE
