Muhammed Shamjidh K vs. The Federal Bank LTD
Held
The Court conditionally cancelled the vehicle sale, directing the petitioner to pay Rs. 5 lakhs by October 20, 2022, and the balance Rs. 12.24 lakhs plus accrued interest and costs by November 25, 2022. The vehicle remains with the bank until full payment, with default allowing the bank to proceed with a fresh sale or handover to the original auction purchaser.
Facts
The petitioner defaulted on a vehicle loan from Federal Bank, leading the bank to initiate proceedings under the SARFAESI Act and sell the vehicle at auction. The auction purchaser had remitted Goods and Services Tax (GST) for the sale.
Key Issues
The key issue was whether a vehicle sale conducted by a bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act due to loan default could be set aside to allow the borrower to clear the outstanding liability.
Sections Cited
None
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 29TH DAY OF SEPTEMBER 2022 / 7TH ASWINA, 1944 WP(C) NO. 28746 OF 2022 PETITIONER: 1 MUHAMMED SHAMJIDH K AGED 29 YEARS KUNNATH HOUSE P O THIRURKAD POST MALAPPURAM DISTRICT, PIN - 679321 BY ADVS. C.RAJENDRAN B.K.GOPALAKRISHNAN R.S.SREEVIDYA RESPONDENTS: 1 THE FEDERAL BANK LTD ANGADIPPURAM BRANCH ANGADIPPURAM P O MALAPPURAM REPRESENTED BY THE BRANCH MANAGER, PIN - 673321 2 THE AUTHORISED OFFICER THE FEDERAL BANK LTD ANGADIPPURAM BRANCH HEAD OFFICE AT LCRD KOZHIKODE DIVISION FEDERAL TOWERS ARAYADATHUPALAM MAVOOR ROAD KOZHIKODE, PIN - 673016 BY ADVS. P.PAULOCHAN ANTONY MOHAN JACOB GEORGE P.V.PARVATHY (P-41) REENA THOMAS NIGI GEORGE THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.09.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WPC No.28746 of 2022 2 JUDGMENT Dated this the 29th day of September, 2022 The petitioner availed a vehilce loan from the respondent Bank. On default being committed, proceedings are initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act and the vehicle of the petitioner was
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