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 WP(C) NO. 29853 OF 2021 PETITIONER:
A.ZEENATH ALIKUNJU, AGED 59 YEARS, W/O.SHAFI MUSALIYAR, JINNAH SHAJAHAN EXPORTS, JINNAH SHAJAHAN GARDENS, KARIKODE, TKMC P.O., KOLLAM -691 005.
BY ADVS.
E.D.GEORGE LINU G. NATH BENET SELVAN S.
BRISONE T. MATHEW RESPONDENTS:
1 FEDERAL BANK LTD., MAIN BRANCH, KOLLAM - 691 013.
2 STATE LEVEL BANKERS COMMITTEE (SLBC) REP.BY ITS CONVENER/GENERAL MANAGER, CANARA BANK, SLBC CELL, CORPORATE OFFICE, CANARA BANK BUILDING, P.B. NO.159, M.G.ROAD, TRIVANDRUM - 695 001.
3 STATE OF KERALA REPRESENTED BY PRINCIPAL SECRETARY, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695 001.
BY ADVS.
SUNIL SHANKER VIDYA GANGADHARAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 29853 OF 2021 2 JUDGMENT The petitioner has approached this Court being aggrieved by proceedings initiated against the petitioner under the provisions of the SARAESI Act to recover amounts due under loans availed by the petitioner from the respondent Bank. It is the case of the petitioner that the petitioner is entitled to the benefit of certain decisions taken by the State Level Bankers Committee / Govt. of Kerala regarding revival of the Cashew Industry.
2.
I have through judgment dated 22.06.2022 in W.P.
(C)No.1615 of 2022 held that any decision taken by the State Level Banker's Committee / the Govt. of Kerala regarding benefits to be given to the Cashew Industries cannot be binding on Banks and financial institutions, taking note of the fact that Banking is exclusively a central subject (Entry 45 list- I) and the executive power of the State being co-extensive with that of its legislative power, the order of the State Government are not binding on the Banks. Therefore, the petitioner cannot be granted the relief of directing the respondent Bank to consider the grant of benefits in terms of
WP(C) NO. 29853 OF 2021 3 the decisions taken by the Govt of Kerala. However, taking into consideration the overall facts and circumstances of the case, I make it clear that it will be open to the petitioner to approach the Bank for regularization / restructuring or for One Time Settlement, which shall be considered by the Bank in accordance with the applicable norms. In order to enable the petitioner to approach the Bank with a suitable proposal, the coercive steps against the petitioner shall be deferred till a decision taken on the proposal to be submitted by the petitioner provided such proposal is made within a period of two weeks from the date of receipt of a certified copy of this judgment.
The writ petition is disposed of with the above direction.
Sd/- GOPINATH P.
JUDGE DK
WP(C) NO. 29853 OF 2021 4 APPENDIX OF WP(C) 29853/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE MINUTES OF THE MEETING HELD ON 6.2.2019 IN THE CHAMBER OF HON'BLE CHIEF MINISTER, IN THE LEGISLATIVE ASSEMBLY COMPLEX Exhibit P2 TRUE COPY OF THE GOVT. ORDER GO (MS) NO.643 OF 2019 DATED 6.7.2019 Exhibit P3 TRUE COPY OF THE CIRCULAR DATED 1.1.2019 ISSUED BY RESERVE BANK OF INDIA Exhibit P4 TRUE COPY OF THE CIRCULAR DATED 11.2.2020 ISSUED BY RESERVE BANK OF INDIA Exhibit P5 TRUE COPY OF THE REQUEST SUBMITTED BY THE PETITIONER TO THE 1ST RESPONDENT BANK DATED 13.12.2018 Exhibit P6 TRUE COPY OF THE POSSESSION NOTICE DATED 14.9.2018 ISSUED BY THE 1ST RESPONDENT BANK Exhibit P7 TRUE COPY OF THE APPLICATION DATED 20.3.2019 SUBMITTED BY THE PETITIONER TO THE CONVENOR, COMMITTEE FOR REHABILITATION OF SICK CASHEW INDUSTRIES AND DEPUTY SECRETARY.
Exhibit P8 TRUE COPY OF THE JUDGMENT DATED 6.1.2021 IN W.P.(C) NO.23758/2020 Exhibit P9 TRUE COPY OF THE APPLICATION DATED 10.7.2020 SUBMITTED BY THE PETITIONER FOR SANCTIONING OF CREDIT FACILITY AS PER M.S.M.E SCHEME
WP(C) NO. 29853 OF 2021 5 Exhibit P10 TRUE COPY OF THE PROCEEDINGS INITIATED BY THE GOVT. OF KERALA DATED 3.2.2021 Exhibit P11 TRUE COPY OF THE MINUTES OF THE MEETING HELD ON 1.10.2021 UNDER THE LEADERSHIP OF THE JOINT SECRETARY FOR INDUSTRIAL DEPARTMENT Exhibit P12 TRUE COPY OF THE GST RETURN FOR THE PERIOD 2021-22 (NOVEMBER) DATED 6.12.2021 Exhibit P13 TUE COPY OF THE UDYAM REGISTRATION CERTIFICATE DATED 13.11.2020 Exhibit P14 TRUE COPY OF THE JUDGMENT DATED 23.11.2021 IN W.P.(C) NO.19318/2021