Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P.
WEDNESDAY, THE 24TH DAY OF AUGUST 2022 / 2ND BHADRA, 1944 W.P.(C) NO.19061 OF 2022 PE TITIONER:
JANSEER K.A., AGED 32 YEARS, M/S. SKY TRADERS, NEDUMBASSERY, S/O. ABOOBACKER, AGED 32 YEARS, KODOPPILLY, PUTHUVASSERY, NEDUMBASSERY, ERNAKULAM, PIN-683 585.
BY ADV. J.ASOKAN(KONEZHATH) RESPONDENTS:
1 RESERVE BANK OF INDIA REPRESENTED BY THE CHIEF GENERAL MANAGER, DEPARTMENT OF MSME SUPERVISION, 14TH FLOOR, CENTRAL OFFICE BUILDING, SHAHID BHAGAT SINGH ROAD, MUMBAI PIN-400 001.
2 UNION BANK OF INDIA REPRESENTED BY ITS MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER, UNION BANK BHAVAN, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI PIN-400 021.
3 THE DEPUTY GENERAL MANAGER, UNION BANK OF INDIA, REGIONAL OFFICE-ERNAKULAM RURAL HOSPITAL ROAD, ALUVA, ERNAKULAM PIN-683101.
4 THE CHIEF MANAGER & AUTHORISED OFFICER, UNION BANK OF INDIA, ARAKKAPADY BRANCH, NEELANGAL BUILDING, P.P. ROAD, ARAKKAPADY, ERNAKULAM PIN-683 556.
ADV. A S P KURUP (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
-2- W.P.(C) NO.19061 OF 2022 JUDGMENT Petitioner has approached this Court challenging proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as the SARFAESI Act) for recovery of the amounts due upon two loans, namely, term loan and cash credit loan, availed by the petitioner.
2. During the course of hearing, petitioner has confined the relief to an opportunity for repaying the outstanding amount in instalments.
3. It was submitted on behalf of the respondent bank that the petitioner committed default in repayment and the total outstanding amount in both loans is Rs.46,78,272/- as on today. It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the outstanding amount in limited instalments.
4. I have heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondents.
5. Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount in eighteen (18) instalments.
6. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.46,78,272/- along with bank
-3- W.P.(C) NO.19061 OF 2022 charges from the petitioner on the following conditions:
(i) The outstanding amount of Rs.46,78,272/- together with any accured interest/costs shall be repaid in eighteen (18) equated monthly instalments.
(ii) The first instalment shall be paid on or before 16.09.2022 and subsequent instalments shall be paid on or before 16th of every succeeding month.
(iii) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.
(iv) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.
The writ petition is disposed of as above.
Sd/- GOPINATH P.
JUDGE bpr
-4- W.P.(C) NO.19061 OF 2022 APPENDIX PETITIONER'S EXHIBITS EXHIBIT P1 TRUE COPY OF GST 1 GST REGISTRATION NUMBER:32AMGPJ5258BJZG DATED 17.07.2018 ISSUED TO THE PETITIONER FOR HIS SKY TRADERS MSE UNIT.
EXHIBIT P2 WEB PAGE OF GUIDELINES RBI/2012- 13/273.RPCD.CO.MSME & NFC.BC.40/06.02.31/ 20122013 ISSUED BY RESERVE BANK OF INDIA FOR THE REHABILITATION OF SICK MICRO & SMALL ENTERPRISES TO ALL SCHEDULED COMMERCIAL BANKS.
EXHIBIT P3 TRUE COPY OF IMPUGNED DEMAND NOTICE ADV:511/105 DATED 01.12.2021 ISSUED UNDER SECTION 13(2) OF THE SARFAEASI ACT TO PETITIONER'S MSE UNIT.
EXHIBIT P4 TRUE COPY OF LOAN ACCOUNT STATEMENT FOR CASH CREDIT ACCOUNT OF PETITIONER'S MSE UNIT FOR PERIOD FROM 01.04.2021 TO 27.05.2022 ISSUED BY THE 4TH RESPONDENT.
EXHIBIT P5 TRUE COPY OF E-AUCTION SALE NOTICE RO/EKMR/SALE NOTICES/2022-23 DATED 09.05.2022 SENT BY THE 3RD RESPONDENT TO MR HUSSAN AND MRS JASEENA, THE MORTGAGORS OF THE COLLATERAL HOUSE PROPERTY.
EXHIBIT P6 TRUE COPY OF OBJECTION LETTER DATED 26.05.2022 TO EXBT-P3 IMPUGNED DEMAND NOTICE SUBMITTED BY THE PETITIONER TO THE 4TH RESPONDENT ON 27.05.2022.
EXHIBIT P7 TRUE COPY OF SUMMONS DATED 29.04.2022 IN O A NO.229/2022 DATED 18.02.2022 RECEIVED BY THE PETITIONER FROM THE HON'BLE DEBTS RECOVERY TRIBUNAL-I AT ERNAKULAM ON 31.05.2022 REQUIRING WRITTEN STATEMENT BY 15.06.2022.
EXHIBIT P8 TRUE COPY OF VALUATION REPORT DATED 24.02.2022 FIXING RESERVE PRICE RS.58 LAKHS FOR THE E- AUCTION SALE PURPOSE OF THE COLLATERAL HOUSE PROPERTY BY THE 4TH RESPONDENT, INSTEAD OF THE PRESENT VALUE OF RS.75.25 LAKHS IN THE OPEN MARKET.