Kerala High Court
Soman vs The Federal Bank Ltd on 17 June, 2025
2025:KER:42887
WP(C) NO.14974 OF 2025
1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
TUESDAY, THE 17th DAY OF JUNE 2025 / 27TH JYAISHTA, 1947
WP(C) NO. 14974 OF 2025
PETITIONER/S:
SOMAN
AGED 61 YEARS
1 PONNAL HOUSE, OORAMANA P O, KAYANAD, MARADY
MUVATTUPUZHA, PIN - 686663
BETZY SOMAN
AGED 55 YEARS
2 W/O SOMAN PONNAL HOUSE, OORAMANA P O, KAYANAD,
MARADY MUVATTUPUZHA, PIN - 686663
BY ADVS.
SMT.S.AMBILY
SMT.RUPA R. NAIR
SRI.K.K.CHANDRAN PILLAI (SR.)
RESPONDENT/S:
THE FEDERAL BANK LTD
REPRESENTED BY ITS SENIOR MANAGER KOOTHATTUKULAM
1 BRANCH, NSS ARCADE BUILDING, MC ROAD,
KOOTHATTUKULAM, PIN - 686662
2 THE AUTHORISED OFFICER
THE FEDERAL BANK LTD. LCRD, ERNAKULAM DIVISION,
FEDERAL TOWERS,GROUND FLOOR, MARINE DRIVE,
ERNAKULAM,KOCHI, PIN - 682031
2025:KER:42887
WP(C) NO.14974 OF 2025
2
THE KERALA STATE FINANCIAL ENTERPRISES LTD
REPRESENTED BY ITS BRANCH MANAGER, THODUPUZHA MAIN
3
BRANCH, THODUPUZHA, PIN - 685584
BY ADVS.
SHRI.P.PAULOCHAN ANTONY
SHRI.SREEJITH K.
SRI. SALIL NARAYANAN K.A., SC FOR R3
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
17.06.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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WP(C) NO.14974 OF 2025
3
MOHAMMED NIAS C. P. , J.
.................................................
W. P. (C) No.14974 OF 2025
.......................................................
Dated this the 17th day of June, 2025
JUDGMENT
The writ petition is filed seeking the following reliefs;
"i) to call for the records relating to this case and peruse the same;
ii) to issue a writ in the nature of mandamus or such other writ, order
or direction commanding respondents 1 and 2 to favourably consider
Ext.P10 and permit the petitioners to close the loan accounts as
proposed in Ext.P10;
iii) to issue a writ in the nature of mandamus or such other writ, order
or direction commanding respondents 1 and 2 not to proceed with the
sale of the property as scheduled in Ext.P1 without considering Ext.10
and without giving the petitioners reasonable opportunity to close their
liabilities along with the liability of their son on a one time basis;
iv) to issue a writ in the nature of mandamus or such other writ, order
or direction commanding respondents 1 &2 not proceed with the
proceedings under the SARFAESI Act against the property scheduled to
Ext.P1, before the Debt Recovery Tribunal considers the entitlement of
the petitioners to get the benefit of exemption as contained in Section
31(i) of the SARFAESI Act;
v) to issue a writ in the nature of mandamus or such other writ, order or
direction commanding respondents 1 & 2 to take steps for sale of the
scheduled property in Ext.P1 on item-wise basis if the sale becomes
necessitated on failure of the OTS offer submitted by the petitioners
evidenced by Ext.P10;
vi) to declare by the issuance of appropriate writ, order or direction
that the steps so far taken by the 2nd respondent under the SARFAESI
Act against the secured assets as contained in Ext.P1 are illegal and
unsustainable; and
vii) to grant such other reliefs as are found just and proper in the facts
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WP(C) NO.14974 OF 2025
of the case and as may be prayed for during the course of the pendency
of the above writ petition before this Hon'ble Court."
2. The matter was referred for mediation as per the orders of this
Court dated 10.04.2025. It is submitted by both parties that the matter was
mediated and settled. A Memorandum of Agreement under Section 89 of the
Code of Civil Procedure read with Rules 24 and 25 of the Civil Procedure
(Alternative Dispute Resolution) Rules, 2008 has been entered into by all the
parties, as per which the Bank had agreed to settle the entire liability for a sum
of Rs.1,75,00,000/- (Rupees one crore seventy five lakhs only), which has to be
paid on or before 30.08.2025.
3. Given the above, no further orders are required to be passed in this
writ petition. The Memorandum of Agreement will form part of the records.
The writ petition is accordingly ordered, directing that the parties shall be
bound by the terms agreed in the Memorandum referred to above.
SD/-
MOHAMMED NIAS C.P.,
JUDGE
JJ
2025:KER:42887
WP(C) NO.14974 OF 2025
APPENDIX OF WP(C) 14974/2025
PETITIONER EXHIBITS
TRUE COPY OF THE DEMAND NOTICE ISSUED
Exhibit P1 UNDER S.13(2) OF THE SARFAESI ACT DATED
10.01.2023
TRUE COPY OF THE REPLY DATED 11.03.2023
Exhibit P2
SUBMITTED TO EXT.P1 NOTICE
TRUE COPY OF THE SECURITISATION
Exhibit P3 APPLICATION FILED BY THE PETITIONERS DATED
18.09.2024 WITHOUT ANNEXURES
TRUE COPY OF THE I.A. NO.609/2025 DATED
Exhibit P4
11.02.2025 FILED IN S.A.NO. 961/2024
TRUE COPY OF THE OPERATIVE PORTION OF THE
ORDER DATED 18.02.2025 DOWNLOADED FROM THE
Exhibit P5
WEBSITE OF THE DRT IN I.A.NO.609/2025 IN
TRUE COPY OF THE I.A. NO.1107/2025 IN
Exhibit P6
S.A.NO.961/2024 DATED 12.03.2025
TRUE COPY OF THE ORDER DATED 21.03.2025 OF
Exhibit P7 THE DRT 1 IN I.A. NO.1107/2025 IN
TRUE COPY OF THE LETTER DATED 28.03.2025
Exhibit P8 ISSUED BY THE BRANCH MANAGER OF THE KSFE,
MAIN BRANCH THODUPUZHA
TRUE COPY OF THE PROPOSAL SUBMITTED BY THE
Exhibit P9 PETITIONERS FOR ONE TIME SETTLEMENT DATED
10.03.2025 TO THE 1ST RESPONDENT
TRUE COPY OF THE REPRESENTATION DATED
Exhibit P10 05.04.2025 SUBMITTED BY THE PETITIONERS TO
THE 1ST RESPONDENT
TRUE COPY OF THE CERTIFICATE ISSUED TO THE
Exhibit P11 1ST PETITIONER BY THE AGRICULTURAL OFFICER
MARADY DATED 05.04.2025
TRUE COPY OF THE CERTIFICATE ISSUED TO THE
Exhibit P12 2ND PETITIONER BY THE AGRICULTURAL OFFICER
MARADY DATED 05.04.2025
BEFOFLE THE rtoNOURABLE HIGH COURT OF KEFIALA AT ERNAKLluLM
Soman & Another : Petitioners
Vs.
The Federal-Bank Ltd-&-Others : Respondents
MEMORANDRUM OF AGREEMEtlT UNDER SECTION 89 0F TI]E CODE OF CIVIL
PF`OCEDURE READ WITH F`ULES 24 & 25 0F THE CIVIL PROCEDURE
oAl=TERNATIVE DISPuTE RESOLUTION), RULES, 2008:
MEDIATIOI\l AGREEMENT
This Mediation Agreement is entered into between the Petitioners and the Respondents
following the mediation process facilitated by the High Court Mediation Centre pursuant to
directions of the Hon'ble High Court in the Writ Petition.
WHEREAS:
1. Petitioners along with tlleir son had availed business loans of
Rupees 1 crore 20 Lakhs from the lst Respondent - Federal Bank Ltd. by
executing necessary loan documents.
ftetitioners Respondents
LimLl€ul
For Tl.e Federal Ba
1. Soman 1. The Federal Bank Ltd, Kbothattu
(Rep by its Senior
AVP, :u#ifcRE;E#I
The Fe(ler Bank Liinited
2. Betty Soman E!-Ira TheAuthorisedofficerf"
The Federal Bank Ltd, Koothattukula
2. Due to ciroumstances beyond control, the loan accounts fell into defauit,
Consequently, the loan accounts were classified as a Non-Performing Asset (NtIA),
and the Bank initiated recovery proceedings urider ffie SARFAESI Act.
3. Aggrieved dy the fecovefy proceedings initiated under the SARFAESI Act, the
petitioners approached the Hon'ble High Court, and the matter was referred to this
Mediation Centre for settlement. Pursuant to the mediation proceedings, the paries
halve reached a mutually acceptable settlement, the terms of which are set out
below:
TERMS Cia SETTLEMENT
1. The parties confirm that the total outstanding liability in the loan accounts of the
petitioner's and their son is Rs. 2,73,42,554.12/- (Rupees Two crore seventy three
lakhs torty two thousand five hundred and fifty four and twelve paise only) as on
02/06/2025. However, the Bank has agreed to settle the entire liability for aL sum of Rs.
1,75,00,000/-(Rupees One Crore Seventy-Five Lakhs only), thereby granting a waiver
of the balance amount provided the entire settlement amount is paid on or before
30.08.2025.
petitioners Respondents
'ink Limited
For The Fe(leral
1. Soman 1. The Federal Bank Ltd. Koothatt
(Rep by its Senior Mapaperpe j!
u-nde_r.SquAESJAc[
AVP'A[!`f8r#E°m#ackeur#eDri:#:
For The I 8 aiik Liinited
• trl\+
2. Betzy Soman 2. The Authorised Officer,
The Federal Bank Ltd, Koothattu
AVP,AUH±ry_{3_end.
ifi!.£;.aj°m#ackr,aunmdedgrnAESJAct
3. KSFE Ltd, ThaeumaALBiENEfiiNANciAL ENTERPRisEs LTD.
(Rep by its Branch Manager)
Thodupuzha Main Branch
2. Trie Petitioners had joined t\ro Kuries {cnitty) `^wh the 3rd Respondent - Kerala State
Financial Enterprises (KSFE ), and the Kuri amount was auctioned. The bid was
eonfirmed ifl the ffaFHe Of the Petitioflers for Rs.1,40,00,000/- (Ftlfpees OfTe Crofe fefty
Lakhs only).
3. The 3rd Respondent has agreed to directly hand over a cheque for an amount which
the 3'd respondent js liable to pay to the petitioners towards the prized amount to the
lst Respondent Bank and the lst respondent has agreed to appropriate/ credit the
cheque amount towards the petitioners' loan liability/one time settlement.
4. The above cheque will be handed over to the lst respondent only on the petitioners
handing over the necessary documents to the satisfaction of the 3rd respondent and on
executing necessary agreement with the 3rd respondent and also subject to the
sanction obtained from the higher authorities.
5. The petitioners are bound to remit/pay the future monthly repayments of the chifty
amount which they have prized. If at the time of handing over the cheque to the lst
respondent, any arrears are there with respect to the repayment of the monthly
installments of the chitty, cheque will be handed over to the lst respondent only after
deducting the said liability. The petitioners are solely responsible and will have to
remit the balance if any to the lst respondent Bank to satisfy the OTS amount.
Petitioners Respondents
For The Federal 8 Lillitted
1.soman„ ve 1. The Federal Bank Ltd, l®otha
(Rep by its SeniqtrtyamHgrsp
AVPIAutLh8£.SDe.dE°m#acfr,aunmdgr{.u#nAEsfAct
For The F I Bank Limited
2. Betzy Soman +='LZ 2. The Authorlsed Officer,
The Federal Bank Ltd, Kbot
NI'Au#E#EKomSa!£13mod6i#IAct
3. KSFE Ltd, Ttyanpttrm®ffiifdquANciAL ENTERPRisES LTD.
(Rep by its Branch Manager)
EEEEE]
ThoduB:.z#:nMaa::rBranch
6. The petitioners agreed to remit the balance amount dye to the Bank before effecting
payment of the amount receivable from the 3r° respondent which is necessary to close
the accounts as per the agreed terms on or before 28.08.2025.
7. On realisaton of the cheque given by the 3rdrespondent, the respondents 1 and 2 will
hand over the title documents deposited by the petitioners with the lst respondent as
security for the loans availed by the petitioners and their son with all the prior
documents etc provided by the petitioners on advancing the said loan amount on the
same day itself.
8. On receiving the full OTS amount of Rs. 1,75,00,000/- (Rupees One Crore Seventy-
Five Lakhs only) on or before 30/08/2025, the lst respondent shall handover the title
deeds to the petitioners which will be handed over to 3rd respondent by the petitioners,
on the same day when cheque is given and realised.
9. On payment of the entire amount as above, and on receipt of the full amount of Rs.
1,75,00,000/-by the lst respondent as stated above, the lst' respondent will handover
the title deeds and issue necessary "No Dues" certificate to the petitioners.
Petitioners Respondents
•i~rlor The Federal iink Limited
1. Soman 1. The Federal Bank Ltd, Kboth
(Rep by its Senior ftyaREn
•4VPIAutih8*.SDe.dE3#acke„r,g#.§#nAESJAct
For The Fe rat Bank Limited
2. Betzy Soman 2. The Authorised Officer,
The Federal Bank Ltd, KbqER
AVP.AutLh8i#E°rffinace#\#mdeE{#nAES[Act
3.rsFELtd,T*OchT#b#zRhAar:I:I:i:NANc`ALENTERPR\sE"
(RepbyltsBranchManager) giv
ThoduB:.z#:nMaa9`:rBranch
I:±==:
10. If the entire amount of Rs. 1,75,00,000/- as agreed is not paid by the petitioners on or
before 30.08.2025 as agreed, this setlement will lapse and respondents 1 & 2 will be
free to proceed to recover the entire amount payable to them as per law forgoing the
concession given. This Agreement is final and binding on all parties. In the event of
any breach or non-compliance with the terms rierein, the aggrieved party shall be
entitled to seek enforcement of this Agreement before the appropriate court or
authority having jurisdiction.
Dated this the 2nd day of June, 2025.
Petitioners Respondents
I.I,ol. `'I`he Federal B[i_nk ljimited
1. Soman 1. The Federal Bank Ltd, Kbot
(Repbyitssen!.8,Tz.#ftaF&
A`'P'A```FLh¢;£4Efmffiack%iua#deEfuRT[Act
2. Betzy Soman TheAutho#o?dfflccj
rat Baiik Limited
The Federal Bank Ltd, thattu lam Branch
_._uE-E'!i,-.-.i--I.--.`.
Theabovesettlement;r:.r::Ta::::::tnh{::t:C::eedd:aytoT)e±
