Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN TUESDAY, THE 18TH DAY OF OCTOBER 2022 / 26TH ASWINA, 1944 WP(C) NO. 32946 OF 2022 PETITIONER:
BLAZE MARKETING 10/284 -1, METTUPALAYAM STREET, PALAKAKD PALAKKAD - 678001 REPRESENTED BY ITS PARTNER JENIFFER HAROON.
BY ADVS.
G.HARIHARAN PRAVEEN.H.
K.S.SMITHA V.R.SANJEEV KUMAR ANJALY T.A M.V.VIPINDAS GENTLE C.D.
RESPONDENT:
UNION BANK OF INDIA PALAKKAD MAIN BRANCH, LAKSHMI RESIDENCY SULTHANPET, COIMBATORE ROAD, PALAKKAD - 678001 REPRESENTED BY ITS BRANCH MANAGER.
OTHER PRESENT:
SC ADV. A.S.P.KURUP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C).32946/2022 2 JUDGMENT Dated this the 18th day of October, 2022 The petitioner, a partnership firm, availed a cash credit facility and a term loan from the respondent Bank and committed default in repayment. This ultimately resulted in the petitioner being issued with Ext. P6 notice demanding repayment of the outstanding amount within seven days.
Going by the notice, the outstanding amount in the cash credit is Rs.35,82,761.61 and the term loan, Rs.4,95,141.39. By Ext. P6, the petitioner is also put on notice that unless the accounts are closed before 15.10.2022, the accounts will be declared NPA.
2. Learned counsel for the petitioner submits that there was prompt repayment till Covid pandemic struck and lockdown was imposed. It is submitted that even now the petitioner is ready and willing to pay the amount if reasonable time is granted.
W.P.(C).32946/2022 3 3. Learned Standing Counsel for the Bank submits that if repayment is not effected, the Bank will proceed to declare the account as NPA. It is submitted that if at all instalment facility is granted, that should be limited to the minimum.
The writ petition is hence disposed of as under;
The petitioner shall repay the amount demanded in Ext. P6 with up-to-date interest in six equated monthly instalments.
The first instalment shall be remitted on or before 20.11.2022 and the balance instalments before the 20th of every succeeding month. If the petitioner commits default in payment of any one instalment, the benefit of this judgment will be recalled and the Bank will be at liberty to proceed in the manner stated in Ext. P6. If the amounts are paid without default, the proposal to declare the accounts as NPA and to effect recovery shall be kept in abeyance.
Sd/- V.G.ARUN JUDGE sb
W.P.(C).32946/2022 4 APPENDIX OF WP(C) 32946/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE GST REGISTRATION CERTIFICATE ISSUED IN THE NAME OF THE PETITIONER ON 16.07.2018 .
Exhibit P2 TRUE COPY OF THE RECEIPT DATED 25.07.2012 ISSUED M/S.T.T.K. PRESTIGE LTD SIPCOT INDUSTRIAL COMPLEX, HOSUR, TAMILNADU EVIDENCING RECEIPT OF RS.ONE LAKH.
Exhibit P3 TRUE COPY OF THE STATEMENT OF ACCOUNT FOR THE PERIOD 01.04.2020 TO 31.03.2021 RELATING TO THE OVERDRAFT ACCOUNT MAINTAINED WITH THE RESPONDENT BANK .
Exhibit P4 TRUE COPY OF THE STATEMENT OF ACCOUNT FOR THE PERIOD 01.04.2021 TO 17.09.2022 RELATING TO THE OVERDRAFT ACCOUNT MAINTAINED WITH THE RESPONDENT BANK BY THE PETITIONER.
Exhibit P5 TRUE COPY OF THE REQUEST DATED 29.06.2022 MADE BY THE PETITIONER WITH THE RESPONDENT BANK FOR RENEWAL OF CASH CREDIT FACILITY UPTO RS.25 LAKHS.
Exhibit P6 TRUE COPY OF THE NOTICE DATED 07.10.2022 ISSUED BY THE RESPONDENT BANK ADDRESSED TO THE PETITIONER.