Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH TUESDAY, THE 23RD DAY OF JANUARY 2024 / 3RD MAGHA, 1945 WP(C) NO. 2378 OF 2024 PETITIONERS:
1 MARSON CHERIAN AGED 63 YEARS, S/O. CHERIAN VENNATTUPARAMBIL HOUSE CHENGALUR ROAD, NEAR HOLY FAMILY HOSPITAL, OLLUR P.O THRISSUR, PROPRIETOR, M/S. TUBE LINKS, IO 1/449, S.N.PURAM, CHENGALUR - PUDUKKAD, THRISSUR DISTRICT, PIN – 680306.
2 MRS. MINI MARSON AGED 60 YEARS, W/O. MR. MARSON CHERIAN, VENNATTUPARAMBIL HOUSE, CHENGALUR ROAD, NEAR HOLY FAMILY HOSPITAL, OLLUR P.0 THRISSUR, PIN – 680306.
BY ADVS.
R.MURALEEDHARAN DR.ANIES GEORGE RESPONDENTS:
1 M/S. SOUTH INDIAN BANK LTD OLLUR BRANCH, D.NO.XI/758, RAMUS SHOPPING MALL, MAIN ROAD, PANAMKUTTICHIRA, OLLUR P.O.
THRISSUR DISTRICT REPRESENTED BY THE BRANCH MANAGER, PIN – 680306.
2 AUTHORIZED OFFICER AND CHIEF MANAGER SOUTH INDIAN BANK LTD.
REGIONAL OFFICE, THRISSUR, PLATINUM JUBILEE BUILDING, CIVIL LANE, AYYANTHOLE, THRISSUR, PIN – 680003.
BY ADV C.AJITH KUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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J U D G M E N T Dated this the 23rd day of January, 2024 The 1st petitioner, who has availed Cash Credit Loan, ECLGS and Terms Loan from the South Indian Bank, has filed this writ petition seeking to quash Ext.P1 notice issued under Section 13(2) and notice issued by the Advocate Commissioner pursuant to orders obtained under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The petitioners seek to direct the respondents to consider Exts.P7 and P8 applications seeking No Objection for the sale of three items of properties by private negotiations, for which bona fide buyers are there, so that the 1st petitioner will be able to satisfy the entire debts due and payable to the Bank within a period of three months, even before the release of the Title Deeds, those are in the custody of the respondents.
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2.
The petitioners state that when they failed to maintain the loan accounts, the petitioners were served with Ext.P1 notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Thereupon, the petitioners remitted an amount of ₹2,23,39,651/-, which is more than 30% of the dues, contend the petitioners.
3.
On 14.11.2023, the 1st petitioner filed an application for One Time Settlement. This Court, as per Ext.P5 judgment, directed the respondents to pass orders on One Time Settlement application of the petitioners. The respondents, however, rejected the One Time Settlement application.
4.
Thereafter, the petitioners filed Exts.P7 and P8 applications for permission to sell three items of properties mortgaged to the Bank, by private negotiations. If No Objection Certificate is given, the properties can be sold and the liability of the Bank can be cleared. However, the Bank
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has not given any reply to Exts.P7 and P8.
5.
In the meanwhile, the Advocate Commissioner appointed by the Chief Judicial Magistrate's Court, Thrissur in Crl.M.P.No.7787 of 2023 has served Ext.P9 notice on the petitioners. The petitioners would submit that the total valuation of the property as assessed by the Bank approved valuer is more than ₹15.33 Crores and therefore, the Bank will not lose any amounts even if a breathing is given to the petitioners to pay off the outstanding debts. If in the meanwhile the Advocate Commissioner is permitted to take over possession of the secured assets, the petitioners will be put to irreparable loss and agony.
6.
Standing Counsel entered appearance and resisted the writ petition. The Standing Counsel submitted that the total outstanding amount payable by the petitioners would exceed ₹9 Crores inclusive of dues in certain accounts which are not declared as NPA. Even if the properties as prayed for
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by the petitioners are released for sale, the petitioners will not be entitled to get the title documents released because there are other loans taken based on the said documents.
Furthermore, the valuation of the property sought to be released by the petitioners would come to ₹6.75 Crores as per the Bank's valuation, whereas the petitioners are offering only ₹4.75 Crores.
7.
I have heard the learned Counsel for the petitioners and the learned Standing Counsel representing the respondents.
8.
What is sought for by the petitioners is grant of No Objection Certificate for private sale of a property, which stand mortgaged to the Bank. Taking into consideration the offer made by the petitioners and the valuation of the property, the Bank is not inclined to consider such proposal. According to the Bank, the property in question stands mortgaged for other Non-NPA accounts also.
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9.
At any rate, the petitioners have not advanced any illegality in the proceedings before the Debts Recovery Tribunal, in order to invoke the jurisdiction under Article 226 of the Constitution of India.
The writ petition is therefore dismissed. The petitioners state that the property sought to be taken over by the Bank contains godowns of the petitioners, which are registered with the GST Department. Therefore, the petitioners may be granted a breathing time at least to shift the godowns. The petitioners will be at liberty to approach the Bank for any arrangement in this regard.
Sd/-
N. NAGARESH JUDGE ams
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APPENDIX OF WP(C) 2378/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE ISSUED UNDER SEE.13(2) OF THE ACT, BY THE 2ND RESPONDENT DATED 12.01.2023 Exhibit P2 TRUE COPY OF THE STATEMENT OF TRANSACTION DETAILS OBTAINED FROM THE BANK, DATED 05 .08.2023 Exhibit P3 TRUE COPY OF THE POSSESSION NOTICE ISSUED UNDER RULE 8(1) BY THE 2ND RESPONDENT, DT.20.04.2023 Exhibit P4 TRUE COPY OF THE APPLICATION SUBMITTED BY THE PETITIONER SEEKING ONE TIME SETTLEMENT, DT.14.11.2023 Exhibit P5 TRUE COPY OF THE JUDGMENT DATED 21.12.2023 IN WP(C) NO.43325/2023 Exhibit P6 TRUE COPY OF THE COMMUNICATION DATED 05.01.2024 SERVED TO THE PETITIONERS REJECTING EXT.P-5 APPLICATION Exhibit P7 TRUE COPY OF THE APPLICATION SEEKING PERMISSION FOR SALE OF PROPERTY BY PRIVATE NEGOTIATIONS DATED 06.10.2023 Exhibit P8 TRUE COPY OF THE APPLICATION SEEKING PERMISSION FOR SALE OF PROPERTY BY PRIVATE NEGOTIATIONS DATED 08.01.2024 Exhibit P9 TRUE COPY OF THE NOTICE ISSUED BY THE ADV. COMMISSIONER TO TAKE PHYSICAL POSSESSION OF PROPERTIES DT.30.11.2023