M/S. Mayi Industries vs State Bank Of India
2025 Latest Caselaw 8398 Ker

Kerala High Court

M/S. Mayi Industries vs State Bank Of India on 3 September, 2025

                                                     2025:KER:66322
O.P(DRT) No.257 of 2025
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                IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                  PRESENT

                  THE HONOURABLE MR. JUSTICE EASWARAN S.

WEDNESDAY, THE 3RD DAY OF SEPTEMBER 2025 / 12TH BHADRA, 1947

                          OP (DRT) NO. 257 OF 2025

  SA NO.547 OF 2025 OF DEBT RECOVERY TRIBUNAL- 2, ERNAKULAM

  OA NO.832 OF 2024 OF DEBT RECOVERY TRIBUNAL- 2, ERNAKULAM

PETITIONER/APPLICANT:

                M/S. MAYI INDUSTRIES
                T.C. 9/1179, MANGALAM LANE, SASTHAMANGALAM,
                THIRUVANANTHAPURAM, REPRESENTED BY ITS MANAGING
                DIRECTOR, MAYA V. NAIR., PIN - 695010


                BY ADVS.
                SHRI.M.GOPIKRISHNAN NAMBIAR
                SHRI.K.JOHN MATHAI
                SHRI.CHETHAN KRISHNA R.

RESPONDENT/RESPONDENT:

                STATE BANK OF INDIA
                STRESSED ASSETS RECOVERY BRANCH, LMS COMPOUND,
                OPP. MUSEUM, WEST GATE, VIKAS BHAVAN P.O.,
                THIRUVANANTHAPURAM, REPRESENTED BY ASSISTANT
                GENERAL MANAGER, AUTHORISED OFFICER.,
                PIN - 695004
                                                              2025:KER:66322
O.P(DRT) No.257 of 2025
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                BY ADV
                SC-JAWAHAR JOSE

THIS      OP     (DEBT     RECOVERY     TRIBUNAL)   HAVING    COME   UP   FOR

ADMISSION          ON     03.09.2025,    THE   COURT   ON    THE   SAME   DAY

DELIVERED THE FOLLOWING:
                                                          2025:KER:66322
O.P(DRT) No.257 of 2025
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                               EASWARAN S., J.
                   --------------------------------------
                           O.P (DRT) No.257 of 2025
                   ---------------------------------------
                   Dated this the 3rd day of September, 2025
                                  JUDGMENT

The petitioner has come up with this Original Petition against the refusal of the Debts Recovery Tribunal-II, Ernakulam to grant interim protection when S.A No.547/2025 was moved on admission on 20.08.2025.

2. The facts are not in dispute in the present original petition. Writ Petition No.9630/2025 was filed by the Managing Director of the petitioner company when faced with recovery proceedings at the instance of the respondent bank, which resulted in Ext.P12 judgment, by which, this Court directed the petitioner to remit the entire amount in twelve equated monthly installments. The petitioner therein, in fact, remitted the substantial portion of the amounts pursuant to the said judgment. However, later, finding that 2025:KER:66322

the directions could not be complied with, resulted in default of the directions. This prompted the bank to move with further recovery measures including one under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. At this point, the petitioner approached this Court in W.P(C) No.25270/2025, which resulted in Ext.P14 judgment relegating the petitioner to the remedy under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. In terms of the directions contained in Ext.P14 judgment, the petitioner filed SA No.547/2025. The Securitization Application was moved before the Tribunal on 20.08.2025. The Tribunal took up the prayer for interim relief and finding that the petitioner did not comply with the directions contained in Ext.P12 judgment in W.P(C) No.9630/2025, declined any interim protection at the admission stage and directed the petitioner to serve a copy of the Securitization Application as well as the interlocutory application on the counsel for the defendant and 2025:KER:66322

posted the S.A to 10.09.2025 for Vakalat, written statement and counter to interlocutory application. In the meantime, the bank appears to have moved with the further recovery measures and have scheduled for taking of possession of the property on 08.09.2025, which prompted the petitioner to approach this Court in this Original Petition under Article 227 of the Constitution of India.

3. Heard Sri.Chethan Krishna R, the learned counsel appearing for the petitioner and Sri.Jawahar Jose, the learned Standing Counsel appearing for the respondent bank.

4. On consideration of the rival submissions raised across the bar, this Court finds that the Tribunal was not justified in declining interim protection at the admission stage on the ground that the petitioner was already given the benefit of remitting the entire amount in instalments by this Court in Ext.P12 judgment. Grant of interim relief basically depends on the prima facie case made out by the applicants in the SA. It is wholly impermissible for the tribunal to insist that interim relief will be considered only on 2025:KER:66322

hearing the respondent bank. There is no warrant for such observation when the respondent bank is not on caveat. At any rate, when the borrower requests the tribunal to grant interim reprieve on undertaking to deposit substantial amount towards liability, it is duty of the tribunal to entertain the said request.

5. It is pertinent to mention that, despite the directions issued by this Court in judgment dated 03.04.2025 in W.P(C) No.9630/2025, this Court had relegated the petitioner to the alternative remedy of preferring an application under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 by judgment dated 15.07.2025 in W.P(C) No.25270/2025. If this court had intended to pin down the petitioner to the directions contained in WP(C) No 9630 of 2025, it would not have relegated the petitioner to move the tribunal under Section 17 of the Securitisation and Reconstruction of Assets and Enforcement of Security Interest Act 2002, when faced with subsequent measures under the Act. That being so, there is no rhyme or reason 2025:KER:66322

as to why the Tribunal should not consider the plea for interim relief, rather than postponing the consideration of the interim relief to a later stage. In the meantime, the bank has scheduled the taking of possession to 08.09.2025. If the bank is permitted to proceed further, the consideration of the Securitization Application then becomes redundant.

6. Faced with this situation, the learned counsel for the petitioner submits that, his client is prepared to make substantial payments in order to protect the lis and to have an effective adjudication of both the Original Application as well as the Securitization Application. The learned Standing Counsel for the bank submits that as against the requirement of payment of Rs.1,24,16,760/- in terms of Ext.P12 judgment, the petitioner has remitted only Rs.24,19,000/-. That be so, necessarily the petitioner is required to show bonafide by making a substantial deposit before the bank in order to have the Securitization Application heard on merits.

2025:KER:66322

7. This Court finds considerable force in the submissions of Sri.Jawahar Jose, the learned Standing Counsel for the bank.

8. In the interest of justice, this court finds that the petitioner is entitled to protect the lis during the pendency of the Securitisation Application. Accordingly, the Original Petition is disposed of issuing the following directions:

(A) All coercive steps for recovery including taking of possession of the secured assets as scheduled shall stand deferred on the following conditions:

(i) The petitioner shall remit a sum of Rs.20,00,000/-

on or before 10.09.2025.

(ii) The petitioner shall further remit a sum of Rs.80,00,000/- in two equal monthly instalments on 20.09.2025 and 20.10.2025. On payment of such amount, the recovery measures taken by the bank shall be kept in abeyance till the Securitization Application is adjudicated by the Tribunal. (B) If the petitioner has got any dispute regarding the quantum of liability, it is free to raise its objection before 2025:KER:66322

the Tribunal in the pending original application. (C) It is made clear that if the petitioner fails to remit any amount as directed by this Court above, the petitioner will lose the benefit of the judgment and the bank will be free to proceed to take possession of the secured asset and all other coercive measures without waiting for any further orders from this Court or the Tribunal.

The Original Petition is disposed of as above.

Sd/-

EASWARAN. S, JUDGE KAS 2025:KER:66322

APPENDIX OF OP (DRT) 257/2025

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE O.A. NO. 832/2024 (WITHOUT ANNEXURES) FILED BY THE RESPONDENT, ON THE FILE OF THE DRT-II, ERNAKULAM, DATED 23.10.2024 Exhibit P2 THE TRUE COPY OF THE M.C.NO.48/2025 DATED 01.01.2025 FILED BY THE RESPONDENT BEFORE THE CHIEF JUDICIAL MAGISTRATE COURT, THIRUVANANTHAPURAM Exhibit P3 TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT, DATED 22.10.2024 ISSUED BY THE SBI SASTHAMANGALAM BRANCH Exhibit P4 TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT, DATED 24.10.2024 ISSUED BY THE SBI SASTHAMANGALAM BRANCH Exhibit P5 TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT THROUGH INDIAN OVERSEAS BANK, DATED 24.10.2024 Exhibit P6 TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT, DATED 12.03.2025 ISSUED BY THE SBI SASTHAMANGALAM BRANCH Exhibit P7 TRUE COPY OF THE STATEMENT OF ACCOUNTANT EVIDENCING PAYMENT THROUGH CANARA BANK STATUE BRANCH, DATED 19.03.2025 Exhibit P8 TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT THROUGH INDIAN OVERSEAS BANK, DATED 29.04.2025 Exhibit P9 TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT, DATED 29.04.2025 ISSUED BY THE SBI SASTHAMANGALAM BRANCH Exhibit P10 TRUE COPY OF THE STATEMENT OF ACCOUNTANT EVIDENCING PAYMENT THROUGH CANARA BANK STATUE BRANCH, DATED 29.04.2025 Exhibit P11 TRUE COPY OF THE ORDER DATED 18/02/2025 IN MC NO.48/2025 PASSED BY THE CHIEF JUDICIAL MAGISTRATE COURT, 2025:KER:66322

THIRUVANANTHAPURAM Exhibit P12 TRUE COPY OF THE JUDGMENT OF THIS HON'BLE COURT IN WP(C) NO 9630 OF 2025 DATED 03-04-2025 Exhibit P13 TRUE COPY OF THE REPLY LETTER DATED 12/06/2025 TO THE LETTER SENT BY THE PETITIONER Exhibit P14 TRUE COPY OF THE JUDGMENT DATED 15.07.2025 PASSED BY THIS HON'BLE

Exhibit P15 TRUE COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER, TO THE PETITIONER DATED 12.08.2025 Exhibit P16 TRUE COPY OF THE SECURITIZATION APPLICATION NO. 547/2025 DATED 15.08.2025 FILED BY THE PETITIONER ON THE FILE OF THE DRT-II, ERNAKULAM (WITHOUT ANNEXURES) Exhibit P17 TRUE COPY OF THE ORDER DATED 20.08.2025, IN S.A. NO. 547/2025, ISSUED BY THE DEBT RECOVERY TRIBUNAL-

II, ERNAKULAM